Automotive brake linings, disc pads and clutch facings major Rane Brake Linings Ltd on Thursday said its Board of Directors has approved buyback of equity shares for a maximum price of Rs 825 per share.
The face value of the equity share is Rs 10 and the maximum price per share will be Rs 825 for buyback and the total amount to be utilised for the purpose will be Rs 22 crore excluding transaction costs and taxes, the company said.
The maximum buyback size represents 9.62 per cent of the aggregate of the company's paid-up equity share capital and free reserves as on March 31 this year.
The share buyback will be from public shareholders and not from promoters or promoter group. The company plans to mop up about 3.37 per cent of the existing paid up capital from the public at the maximum price.
Meanwhile, Rane Brake Lining also said it closed the first half of the current fiscal with a total revenue of Rs 148.9 crore as compared to Rs 231 crore earned during the previous year's corresponding period.
The net profit stood at Rs 4.6 crore for period under review, down from Rs 14.8 crore in H1 FY20 owing to the Covid-19 lockdown during the first quarter of the current fiscal.
"With the gradual opening of the economy, we saw pickup in the demand and OEMs production levels gained momentum anticipating festive sales. The plant operations team effectively handled the production ramp up despite the supply chain and labour availability challenges. The cost reduction measures and lower material prices helped in margin improvement. We remain cautiously optimistic about sustenance of the demand post festive season," Rane Group Chairman L. Ganesh said.