Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has announced a share repurchase plan to buy back up to 10% of its paid-up equity share capital. The company will repurchase shares at a price not exceeding ₹700 per share.
The share repurchase plan is in accordance with the provisions of the Companies Act, 2013, and the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015. The purpose of the share repurchase is to improve the company’s capital structure and enhance shareholder value.
The share repurchase will be carried out through open market purchases or through a tender offer. The company will appoint a merchant banker to manage the share repurchase process.
The share repurchase is expected to commence on November 9, 2023, and will close by February 8, 2024.
GNFC is a leading producer of urea and other fertilizers in India. The company has a production capacity of 2.4 million tonnes per annum (MTPA) of urea and 0.7 MTPA of other fertilizers. GNFC’s urea is primarily used in the agricultural sector, while its other fertilizers are used in the industrial sector.
The company’s share repurchase plan is expected to be positive for shareholders. The repurchase will reduce the number of shares outstanding, which will increase earnings per share (EPS). The repurchase will also improve the company’s capital structure by reducing the company’s debt-to-equity ratio.
The share repurchase is also a sign of confidence in the company’s future. GNFC believes that its shares are undervalued and that the repurchase will provide shareholders with an opportunity to realize a premium on their shares.
About Gujarat Narmada Valley Fertilizers & Chemicals Limited
Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) is a leading producer of urea and other fertilizers in India. The company has a production capacity of 2.4 million tonnes per annum (MTPA) of urea and 0.7 MTPA of other fertilizers. GNFC’s urea is primarily used in the agricultural sector, while its other fertilizers are used in the industrial sector.
GNFC was founded in 1968 and is headquartered in Bharuch, Gujarat, India. The company has a strong presence in the Indian fertilizer market and exports its products to over 20 countries.
GNFC is committed to producing high-quality fertilizers that meet the needs of farmers and industrial users. The company is also committed to environmental sustainability and has implemented a number of initiatives to reduce its environmental impact.
About NSE:GNFC
NSE:GNFC is the stock ticker symbol for Gujarat Narmada Valley Fertilizers & Chemicals Limited on the National Stock Exchange of India (NSE). NSE:GNFC is a listed company on the NSE and its shares are traded on the NSE. Please note that the information contained in this article is for informational purposes only and should not be construed as investment advice.
