Jyothy Labs Limited has announced the approval of a buyback of up to 68,37,210 equity shares, representing approximately 1.86% of its total paid-up equity share capital. The buyback will be conducted at a price of ₹215 per share, for an aggregate amount not exceeding ₹147 crore. This move is intended to return surplus funds to shareholders and enhance overall shareholder value.
Jyothy Labs Announces Share Buyback
Jyothy Labs Limited has officially announced its decision to proceed with a buyback of its equity shares. The company plans to repurchase up to 68,37,210 fully paid-up equity shares of face value ₹1 each. This represents approximately 1.86% of the total issued and paid-up equity share capital as of March 31, 2026.
Buyback Details and Price
The buyback will be executed via the tender offer route, with a maximum buyback price set at ₹215 per equity share. The total amount proposed for the buyback, excluding transaction costs, is not to exceed ₹147,00,00,150 (Indian Rupees One Hundred Forty-Seven Crore and One Hundred Fifty only). This buyback size represents 9.70% of the company’s paid-up equity share capital and free reserves as of March 31, 2026, staying within the 10% statutory limit.
Rationale for Buyback
The company stated that the buyback is being undertaken to return surplus funds to its shareholders, enhance overall shareholder value, and optimize the company’s capital structure. It is expected to improve return on equity and earnings per share in the long term by reducing the equity base. Shareholders will have the option to tender their shares or retain them, potentially increasing their percentage shareholding without additional investment.
Timeline and Entitlement
The Record Date for determining the eligibility of shareholders for the buyback has been fixed as November 11, 2026. The tendering period will commence on November 17, 2026, and conclude on November 23, 2026. The buyback will reserve up to 15% for small shareholders, defined as those holding shares with a market value not exceeding ₹2,00,000 as of the Record Date.
Compliance and Approvals
The buyback is in compliance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, and the Companies Act, 2013. The Board of Directors has confirmed that the company has sufficient funds and will be able to meet its liabilities. The independent auditors, BSR & Co. LLP, have provided a report confirming the company’s compliance and financial position.
Source: BSE
