Emami shares rise 5% after board approves Rs 282 crore buyback

Emami Ltd shares rose 5% in Thursday's trade after the company's board approved a buyback of fully paid up equity shares worth up to Rs 282 crore. The buyback will be conducted through the open market route on the stock exchanges, with the company offering to purchase shares at a maximum price of Rs 475 apiece.

The board approved the buyback at its meeting held on September 17, 2026. The maximum buyback size has been fixed at Rs 28,200 lakh, while the maximum buyback price is Rs 475 per equity share. The company said the buyback will exclude promoters, members of the promoter group and persons in control and their associates.

Emami shares were trading at Rs 388.10 on Thursday, up 5.05%, from their previous close of Rs 369.45. The stock opened at Rs 375 and touched an intraday high of Rs 396.30.

The company said it could buy back up to 59,36,842 equity shares at the maximum buyback price. This would represent around 1.36% of the company's total paid up equity share capital as of the board meeting date. If shares are bought back below Rs 475 apiece, the actual number of shares bought back could be higher, subject to the maximum buyback amount.

Emami has also committed to using at least 75% of the amount earmarked for the buyback, or Rs 211.50 crore, for purchasing its equity shares. Based on the minimum buyback size and the maximum buyback price, the company would purchase an indicative minimum of 44,52,632 shares.

The company further said 40% of the maximum buyback size, amounting to Rs 112.80 crore, will be utilised within the initial first half from the opening of the offer. The maximum buyback size represents 9.28% and 9.98% of the aggregate of the company's total paid up capital and free reserves based on its audited consolidated financial statements as of March 31, 2026.

The board has constituted a Buyback Committee and delegated powers to it to undertake the necessary actions in connection with the buyback. Emami said the public announcement containing the process, timelines and other statutory details of the buyback will be released in due course.