On March 24, Emami Ltd’s board of directors approved a plan to buyback shares worth up to Rs 186 crore through the open market route.

The company told the stock exchange on March 24 that the board agreed to buyback 41.3 lahks shares at a face value of Re 1 at a maximum price of Rs 450 each. The buyback price of Rs 450 was more than 23% higher than the last closing price.

The stock rose briefly after the announcement but then slipped again. It was quoted at Rs 363 on the National Stock Exchange at 12:15 pm, down 0.3% from its previous close.

An open buyback offer allows a company to acquire stock from the open market over an extended time frame. On the other hand, a tender offer means that shareholders must sell some or all of their shares at a specified price within a specified time frame.

Share buybacks help boost earnings per share (EPS) by reducing the number of shares outstanding.

In Q3FY23, Emami’s consolidated net profit rose 6.12% to Rs 232.97 crore amid a contraction in gross margin due to inflationary pressures.

Its operating income rose 1.2% to Rs 982.72 crore, compared with Rs 971.06 crore in the same period of the previous fiscal.