Vakrangee up 5% as board approves capital allocation for buyback, dividend
Vakrangee is locked in upper circuit for the second straight day, up 5% at Rs 212 on BSE after the company said its board approved the current one time capital allocation policy with Rs 13.72 billion to be utilized through share buyback, dividend payout and re-invest in business. “Of the total amount of Rs 13.72 billion, Rs 10 billion to be utilized through share buyback, Rs 2.50 billion to be utilized through dividend payout and Rs 1.22 billion to be re-invest in business includes investments in organic business growth, technology and R&D, training infrastructure, brand building initiatives and contingency fund,” Vakrangee said in a press release. The board also approved long term capital allocation policy, under which one-third of the total free cash flows to be made available for share buyback, dividend payout and re-invest in business each. The promoter and promoter group of the Company will not take part in the buyback process and would not tender any shares in the buyback process leading to high percentage of buyback as % of free float available, it added. The stock close at Rs 192 on Thursday, February 8, 2018, had tanked 62% from Rs 505 on January 25, after the Vakrangee had purchased two million shares of PC Jeweller for a little over Rs 1.12 billion through an open market transaction. The Company has treasury fund of more than Rs 15 billion.
We had done Direct Equity Investments in PC Jeweller. Post this investment, we received feedback from our investors Community to avoid any direct equity investment, Vakrangee had said. Till 12:25 PM; a combined 233,887 equity shares changed hands and there were pending buy orders for 20.66 million shares on BSE and NSE.