CARE Ratings rises after board OKs Rs 122-cr share buyback

CARE Ratings gained 2.29% to Rs 468.75 after the company's board approved a proposal to buy back up to 23.68 lakh shares of the company at a price of Rs 515 per share.

The maximum consideration payable in cash for the proposed buyback shall not exceed Rs 1,21,95,20,000, the credit rating agency said.

The number of shares that the company proposes to buyback represents 7.99% of the total issued and paid-up equity share capital of the company.

The buy-back is proposed to be made from the existing shareholders of the company, as on the record date to be decided at a later stage, on a proportionate basis through "tender offer".

The company is professionally managed and does not have any identifiable promoters or promoter group and persons in control. Public shareholders held 29,648,880 shares of the company as on 15 July 2022. Post buy-back, the number of shares held by the public will come down to 27,280,880.

CARE Ratings is one of the leading credit rating agencies in India. It covers many rating segments including manufacturing, infrastructure, financial sector including banks, non-financial services, among others.

The company's consolidated net profit declined 12.16% to Rs 22.90 crore on a 17.23% drop in sales to Rs 65.88 crore in Q4 FY22 over Q4 FY21.

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