“In accordance with the Buyback Regulations, the company has emailed the Letter of Offer today (13 August) to eligible bidders shareholders tenure capital shares of the company as at August 9 (the record date),” Indus said in its filing. These would be equity shareholders/beneficial owners of equity shares of Indus in the registration date.
Shares of Indus closed 2.46 per cent lower at Rs 405.65 on the BSE on Tuesday.
Earlier this month, Indus’ board had authorised a buyback of 56.7 million equity shares at a price of Rs 465 per share, representing 2.107 per cent of the company’s total equity holdings, for a total of Rs 2,640 crore.
It had set August 9 as the record date to determine the entitlement and names of equity shareholders who would be eligible to participate in the buyback. Indus’ largest shareholder, Bharti Airtel will not participate in Towerco’s share buyback plan. Indus’ top management had recently said that its decision to announce a share buyback is aimed at distributing cash to shareholders in a tax-efficient manner, especially since the company has not paid any dividends in the last two years. The buyback, they had added, is an ideal way to preserve distributable reserves for dividend payments in the future.
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