TTK Prestige Board Approves Share Buyback at 25% Premium via Tender Offer

TTK Prestige Ltd shares rose by up to 4% on August 01, 2024, after the company’s board approved a buyback of its equity shares.

TTK Prestige plans to buy back up to 16.66 lakh equity shares, which is 1.2% of its total equity share capital, for ₹200 crore. The record date for this buyback is August 14, 2024.

The buyback price is set at ₹1,200 per share, a 25% premium over Thursday’s closing price. The buyback will be done through a tender offer, meaning the company will repurchase shares at the set price.

This is TTK Prestige’s first buyback in nearly 7 years, with the last one in 2017. Earlier this year, TTK Prestige declared a final dividend of ₹6 per share, the same amount as in 2023. In December 2021, the company split its shares in a 10:1 ratio.

As of the end of the June quarter, TTK Prestige’s promoters held a 70.41% stake in the company.

Additionally, Indian domestic mutual funds owned 11.1%, and Life Insurance Corporation of India (LIC) held a 2.19% stake. Nalanda India Equity Fund had a 3.32% stake, while small shareholders with authorised share capital of less than ₹2 lakh owned 6.27%.

9 companies, including TTK Prestige, have announced or will announce share buybacks by the first week of August. This comes shortly after Finance Minister Nirmala Sitharaman proposed tax changes during her Budget 2024 speech on July 23.

About TTK Prestige Ltd

The TTK Group was founded in 1928 by Mr. T.T. Krishnamachari, who started a distribution network for various products, including foods and personal care items. TTK Prestige, India’s largest kitchenware company, was established in 1955 as a private limited company and went public in 1994. It is a leading brand in kitchen equipment, particularly known for its pressure cookers. In 2012, the company formed alliances with global high-end brands for cookware, storage solutions, water filters, and gas stoves.

On August 02, 2024, TTK Prestige Ltd’s share price opened at ₹953.50, touching the day’s high at ₹1,013.50, as of 01:35 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.