Cheviot Declares Share Buyback at 16% Premium; Final Dividend Set at ₹5

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Cheviot Declares Share Buyback at 16% Premium; Final Dividend Set at ₹5

Team FS

24/May/2024

Key Points:

Cheviot Ltd., a leading jute product manufacturer, unveils its third buyback initiative in four years, aiming to repurchase 1.75 lakh equity shares, approximately 2.91% of the outstanding equity.
Priced at ₹1,800 per share, reflecting a significant 16.7% premium to Thursday's closing price, the buyback underscores the company's commitment to enhancing shareholder value.
Despite reporting a marginal decline in revenue and EBITDA for the March quarter, Cheviot Ltd. remains steadfast in its shareholder-centric approach, declaring a final dividend of ₹5 per share alongside the buyback.

Cheviot Ltd., renowned for its jute product manufacturing expertise, announces its third buyback program in four years, demonstrating its dedication to delivering value to shareholders. With a plan to repurchase 1.75 lakh equity shares, equivalent to 2.91% of the company's outstanding equity, Cheviot Ltd. aims to bolster investor confidence and provide premium value.

Premium Offerings and Shareholder-Centric Approach:
Priced at ₹1,800 per share, the buyback marks a substantial 16.7% premium to Thursday's closing price, highlighting Cheviot Ltd.'s commitment to rewarding shareholders. The buyback will be executed via the "tender offer" route, ensuring a fixed price repurchase mechanism to enhance transparency and efficiency. Additionally, the company's decision to fix June 14, 2024, as the record date for the share buyback reinforces its strategic planning and execution.

Financial Performance and Continued Shareholder Benefits:
Despite witnessing a marginal decline in revenue and EBITDA for the March quarter, Cheviot Ltd. remains focused on maximizing shareholder returns. With a net profit of ₹15 crore, reflecting a 9.5% increase from the same period last year, the company affirms its resilience amidst market fluctuations. Furthermore, the declaration of a final dividend of ₹5 per share, with the record date aligned with the buyback, underscores Cheviot Ltd.'s commitment to shareholder welfare and long-term value creation.

Conclusion:
Cheviot Ltd.'s third buyback initiative reaffirms its dedication to prioritizing shareholder interests and enhancing value. By offering a premium price and aligning with shareholder-friendly measures such as dividends, the company strengthens its position as a trusted entity in the market. As it navigates through dynamic market conditions, Cheviot Ltd. remains steadfast in its commitment to sustainable growth and shareholder prosperity.

Also Read : Coromandel International Introduces 10 New Crop Protection Solutions to Empower Farmers in India

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Cheviot Declares Share Buyback at 16% Premium; Final Dividend Set at ₹5

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