Piramal Enterprises has proclaimed a share buyback plan for Rs 1,750 crore through the tender offer route at Rs 1,250 per share.

The company said in an exchange filing that the board of directors, at its meeting on July 28, 2023, accepted a buyback of about 1,40,00,000 equity shares of face value Rs. 2 each for a total amount not exceeding Rs. 1,750 crore.

This represents 5.87% of the total paid-up equity share capital. The price was set at Rs 1,250 per share. The offer signifies a 16% premium to the July 28 closing price of Rs 1,073.

The board has fixed August 25, 2023, as the record date for determining the shareholder’s eligibility to contribute to the buyback. The promoter and its group have intended not to participate in the buyback. The tendering period of the buyback will be open for 5 working days.

The company added that the process, timelines, and other necessary details would be disclosed in a public announcement, and the letter of offer to be published under regulations.

As on July 21, 2023, the promoters held a 43.48% stake in Piramal Enterprises, domestic institutions 13.55%, foreign investors 25.74% and Indian public, corporates, and others 17.23%.

On July 28, Piramal Enterprises closed 2.15% lower at Rs 1,072.80 per share on BSE against its preceding close.