LGB decides to buy back 14.97 per cent shares at Rs 85 per share

Chennai: The board of automotive and industrial chain manufacturer LG Balakrishnan & Bros (LGB) has decided to buy back 14.97 per cent (5,88, 235) of the company’s outstanding shares at Rs 85 per share.

The total outlay for the buyback will around Rs 5 crore, to be funded out of company’s surplus reserves. The buyback amount is around 10 per cent of the company’s equity and reserves. LGB hopes to complete the buyback within 12 months, adopting the tender offer method on a proportionate basis.

As on 30 September 2002, the total non-promoter holdings in the Rs 3.93-crore equity is 57.02 per cent; the balance is held by the promoters and persons acting in concert.

Rolling out the Rollon brand of automotive chains at its Coimbatore plant, LGB is also into textiles, bodybuilding, cogged belts and rubber products, engine servicing, tyre-retreads and trading activities. But it is the company’s chain division that is the major revenue earner.

For the first half of the current fiscal, the company has declared a turnover of Rs 116.66 crore and an after tax profit of Rs 4.85 crore. Last year, the company clocked a turnover of Rs 207.34 crore and a net profit of Rs 6.53 crore.