Jyothy Labs Limited has announced a share buyback program, intending to repurchase up to 61,25,000 equity shares, representing approximately 1.67% of the total outstanding equity shares. The buyback will be conducted via a tender offer route at a price of ₹240 per share, valuing the total buyback at approximately ₹147 crore. This move is aimed at returning surplus cash to shareholders and enhancing shareholder value.
Jyothy Labs Announces Share Buyback
Jyothy Labs Limited has officially commenced a buyback of its fully paid-up equity shares. The company plans to repurchase up to 61,25,000 equity shares, which equates to roughly 1.67% of its total outstanding equity shares. This buyback is being executed through a tender offer mechanism, a process managed via the stock exchange.
Buyback Price and Value
The buyback offer price has been set at ₹240 per equity share, payable in cash. This translates to a total buyback size of approximately ₹147,00,00,150 (INR 147 crore), excluding transaction costs. The company stated that this initiative is intended to distribute surplus cash to its shareholders, thereby enhancing the overall return for them.
Key Dates and Entitlements
The buyback program is scheduled to open on November 17, 2026, and will close on November 23, 2026. The record date for determining eligible shareholders was November 11, 2026. The buyback entitlement ratio for general shareholders is 4 equity shares for every 89 equity shares held.
Rationale for Buyback
Jyothy Labs aims to optimize shareholder returns and enhance overall shareholder value through this buyback. The company also anticipates that the reduction in the equity base may improve its return on equity and earnings per share in the long term.
Source: BSE
