GlaxoSmithKline Consumer Healthcare announces share buyback of upto Rs 12302.81 Lakhs, New Delhi, December 10, 2004
10 December 2004
GlaxoSmithKline Consumer Healthcare announces share buyback of upto Rs 12302.81 Lakhs
New Delhi, December 10, 2004
The Board of Directors of GlaxoSmithKline Consumer Healthcare Ltd. (GSKCH), at a board meeting today, approved the buyback of shares of Rs 12302.81 lakhs in a move to invest surplus funds to maximise shareholder value.
The GSKCH Board has approved the share buyback for an amount of up to Rs. 12302.81 lakhs, representing 7.33% of the equity share capital of the company. This is the maximum amount that the Company is authorised to deploy for this purpose, as per the provisions of the Companies Act, 1956 and prevailing SEBI Regulations. GSKCH will buy back shares at a price not to exceed Rs. 370 per equity share.
The company will employ fixed price tender offer route for the buyback. The shares purchased under the buy back program will be cancelled, as required under SEBI's guidelines, leading to a reduction in the company's equity capital.
"GSKCH had evaluated various options on how to deploy its surplus funds to best maximize returns to shareholders," said Gautam K. Chakraborty, Director, Finance & IT, GlaxoSmithKline Consumer Healthcare. "The proposed buy back represents prudent deployment of our surplus funds to improve shareholders' value."
GSKCH's equity capital is currently at Rs. 4538.06 lakhs and its market capitalization as on Dec 9, 2004 is Rs. 143584 lakhs. The promoter's shareholding currently stands at 39.99%.
About GlaxoSmithKline Consumer Healthcare Ltd.
GlaxoSmithKline Consumer Healthcare Ltd., which was established in 1958, is an associate of GlaxoSmithKline plc. of the U.K, a global pharmaceutical and science based healthcare company. GSKCH has continually benefited from the technical and marketing inputs that have been available as a consequence of this association. GSKCH is one of the largest players in the health food drinks industry. The Company with its manufacturing plants located in Nabha, Rajahmundry and Sonepat has a total workforce of about 2700 people.
GSKCH has a strong marketing and distribution network in India comprising over 1800 wholesalers and direct coverage of over 4,50,000 retail outlets. Its flagship products, Horlicks and Boost are widely regarded and highly respected brands. The Company in addition markets and distributes a large number of products in diverse categories, which include prominent household names such as Eno, Crocin and Iodex.