Cosmo First rises as board OKs 108-cr share buyback
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Cosmo First advanced 1.29% to Rs 756.05 after the company's board approved buyback worth upto Rs 108 crore at a price not exceeding Rs 1,070 each. The indicative maximum number of equity shares to be bought back under the buyback would be 10,09,345 equity shares (representing approximately 3.70%, which is less than 25% of the existing paid-up equity share capital of the company).
The maximum buyback size represents 9.95% and 9.22% of the aggregate of the total paid-up equity share capital and free reserves of the company. As on 14 January 2023, promoters and promoter group held 44.27% in the company. Assuming the buyback of maximum buyback shares, promoter group holding will increase to 44.40%.
Shares of Cosmo First jumped 4.09% to Rs 746.45 on the BSE. The maximum buyback price is 43.35% premium to the ruling market price. Cosmo First (formerly known as Cosmo Films) is a global leader in specialty films for packaging, lamination, labeling and synthetic paper. The company is strategically expanding beyond films into specialty chemicals & polymers as well as pet care business. The company's consolidated net profit declined 24.7% to Rs 73.23 crore despite of 2.4% jump in net sales to Rs 777.94 crore in Q2 FY23 over Q2 FY22.
