Vardhman Textiles Ltd.`s Buyback of Shares |
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EXCERPTS |
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VTL saw a rise in its cash and bank balance due to a growth in cash flow from operations. The cash flow from operations had increased from Rs. 113 million in FY10 to Rs. 9.15 billion in FY16 (Refer to Figure I). This growth was reflected in the Cash and Cash Equivalents and Reserve and Surplus of the company.. |
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| DISTRIBUTION OF WEALTH TO SHAREHOLDERS |
| VTL was paying dividends on a regular basis over a period of time (Refer to Exhibit II for details of divided paid by VTL). Its dividend payout ratio had increased from 8.74% in 2010 to 25.89% in 2016.. |
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| SHARE BUYBACK BY VTL |
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On September 24, 2016, the BoD of VTL approved the proposal to buy back 6.13 million (6,127,659) equity shares at the maximum price of Rs. 1,175 per share with the total buyback size not to exceed Rs. 7.20 billion. Jain said, “Overall, the company is in the most stable position. The fabric business, the expansion and the printed fabric expansion that we just put up are all well settled. Once the company is in a stable position, you do not need that much of cash. Therefore, we thought it is a good opportunity to return the cash.” ..
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| EXHIBITS |
Exhibit I: Selected Audited Consolidated Financial Information of VTL
Exhibit II: Dividend Payment by VTL
Exhibit III: Key Ratios of Textile Industry and VTL (in FY2016)
Exhibit IV: Closing Price of VTL vs. Closing Values of SENSEX
Exhibit V: Schedule of Share Buyback Activities
Exhibit VI: Shareholding Pattern of VTL
Exhibit VII: Regulatory Framework of Buyback of Securities in India
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