Bids for Bombay Dyeing buyback plan suggested

	Financial Daily from THE HINDU group of publications Tuesday, July 24, 2001

• AGRI-BUSINESS
• COMMODITIES
• CORPORATE
• INDUSTRY
• LETTERS
• MACRO ECONOMY
• MARKETS
• NEWS
• OPINION
• VARIETY
• INFO-TECH
• CATALYST
• INVESTMENT WORLD
• MONEY & BANKING
• LOGISTICS

• PAGE ONE
• INDEX
• HOME

Corporate | Next | Prev

Bids for Bombay Dyeing buyback plan suggested

Our Bureau

MUMBAI, July 23

A SECTION of shareholders of Bombay Dyeing and Manufacturing Ltd has demanded that the company conduct its proposed buyback scheme by tender instead of going in for open market purchases.

At the company's annual general meeting here today, some of the shareholders also opposed the buyback resolution which suggested buying back of the company's shares at Rs 60 per share. The resolution was, however, passed with majority.

The company has proposed the buyback of 1.02 lakh shares representing 25 per cent of total paid-up capital resulting in an outgo of Rs 61.50 crore.

Currently the promoters' shareholding in the company stands at 40.85 per cent. `` The company has no plans to buyback the shares held by the Calcutta based Arun Bajoria.There has been no request for the same and there are no plans to do so,'' Mr Wadia sa id. It plans to implement its retail restructuring plan by June-July 2002, said Mr Nasli Wadia, Chairman, Bombay Dyeing and Manufacturing Co Ltd.

Mr Wadia denied any plans of exiting the textiles business. ``The consultants are already half-way through the finalising of redesign and brand positioning plans,'' he said told shareholders. Bombay Dyeing will be positioned as the main brand of the comp any.

The company which has paid back debts of Rs 223 crore and has average borrowing costs of approximately 10 per cent, he said.

Higher loss: Bombay Dyeing reported higher loss of Rs 9.19 crore for the quarter ended June 30, 2001 as against Rs 5.31 crore for the corresponding period last year. Net sales for the period were also marginally lower at Rs 229.94 crore (Rs 230.65 crore) . It announced a 20 per cent dividend.

Other income stood at Rs 13.96 crore (Rs 11.09 crore). Total expenditure for the period stood at Rs 228.36 crore (Rs 218.05 crore). Operating profit for the period was Rs 15.54 crore. Interest for the period was Rs 11.98 crore (Rs 15.73 crore) while depr eciation stood at Rs 11.09 crore (Rs 12.09 crore).