Chennai-based Matrimony.com will spend ₹72 crore on buyback of 7.02 lakh shares. This represents 3.16 percent of the total number of shares in the paid-up share capital of the company as on March 31, 2024. The buyback price is ₹1,025 per equity share. The money for the buyback will be made available from internal reserves, the company said.
This is the company’s second buyback. In June 2022, shareholders approved the first buyback of Matrimony.com for ₹75 crore at a buyback price of ₹1,150.
The buyback price represents a premium of 60.16 percent and 60.21 percent over the volume weighted average market price of the equity shares on BSE and NSE respectively during the three month period ending September 2, 2024 (being the date of announcement of the share price). Grants relating to the date of the board meeting (“Intimation Date”); 27.48 percent and 26.91 percent over the closing share price on BSE and NSE, respectively, on September 5, 2024 (the date of the board meeting at which the meeting is approved). buyback), the company said.
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“It is a way of rewarding shareholders and it is a decision of the board,” Murugavel Janakiraman, founder and CEO of Chennai-based Matrimony.com, told me. business line.
The buyback, which is being implemented through the public offer route as prescribed in the SEBI Buyback Regulations, would involve a reservation of up to 15 percent of the shares, which the company proposes to buy back, for retail shareholders, or the actual number of shares Shares to which entitlement exists based on the shareholdings of small shareholders on the Record Date, whichever is the later.
Small shareholders
The Company believes that this small shareholder reservation would benefit a significant number of the Company’s public shareholders, who would be classified as “small shareholders.”
“Small Shareholder” means a shareholder of the Company who holds shares whose market value, based on the closing price of shares, on the recognized stock exchange where there is the highest trading volume in respect of such security, as on the Record Date (i.e. October 25, 2024), shall not exceed ₹200,000 as defined in Regulation 2(i)(n) of the SEBI Buyback Regulations.
Based on the rationale for the buyback, they said it has continuously generated significant amounts of cash and is a debt-free entity. The current buyback proposal was in line with the company’s capital allocation practice of returning excess cash to shareholders, increasing longer-term shareholder value and improving return on equity.
The company’s promoter will not participate in the buyback, which started on October 30 and closes on November 6.
