Cosmo First shares jump after board approves share buyback at 33% premium

Shares of Cosmo First gained on Thursday after the company's board approved the buyback of 10 lakh equity shares through the tender offer route.

The buyback price has been fixed at Rs 1,070 per equity share, implying a premium of 33 percent from Wednesday's closing price. The company will spend a total of Rs 108 crore for the share buyback.

Record date for the purpose of the buyback has been fixed at December 14, 2022.

10.1 lakh shares implies 3.7 percent of the total paid up equity share capital of the company as of March 31 this year and adjusted for the bonus issue it gave in June 2022.

The company had declared a 1:2 bonus issue in June this year. Other than that, it has also declared interim dividends of Rs 10, Rs 25 and Rs 25 in February 2022, September 2021 and February 2021 respectively.

This is the company's second buyback after the one it had announced in November 2020.

In an interaction with CNBC-TV18 on September 30, Cosmo First's Pankaj Poddar said that raw material costs have stabilised and are at the bottom of the cycle. He also spoke about the company's exports which were not impacted despite the prevailing headwinds in Europe.

The company had forayed into the pet-care business through the launch of its tech-enabled omni-channel platform ZIGLY. Poddar had mentioned in September that the segment is one of the fastest growing in the consumer space and will continue to grow at 20 percent levels in India as it had been earlier.

The management of Cosmo First will interact with CNBC-TV18 tomorrow, December 2.

Shares of Cosmo First gained as much as 5 percent and are currently trading 3.5 percent higher at Rs 830.2.