According to reports from The Economic Times, Garware Technical Fibres has announced that its board will meet on May 8 to consider and approve a proposal for buyback of equity shares. The company has a face value of ₹10 each for its shares, and the trading window is already closed for designated persons since April 1 for the consideration of its Q4 results.
As reported by The Economic Times, Garware Technical Fibres has maintained a steady tradition of share buybacks, with previous buybacks announced in 2024, 2022, and 2020. The company's latest buyback announcement comes alongside its Q4 results review, continuing this regular pattern of capital return to shareholders.
According to The Economic Times, before the current announcement, Garware Technical Fibres had announced a share buyback worth ₹90 crore at a buyback price of ₹3,750 apiece, implying a premium of nearly 11% over the market price. This demonstrates the company's consistent approach to returning value to shareholders through regular buyback programs.
As reported by The Economic Times, the domestic ratings agency ICRA highlighted Garware Technical Fibres' sizeable quantum of share buybacks and dividend payouts over the years. With an expected strong cash flow generation and limited avenues for capital expenditure, ICRA expects the company to continue buybacks and dividend payouts to equity shareholders. The company currently has a market capitalisation of around ₹6,372 crore.
According to The Economic Times, in the longer term, the shares of Garware Technical Fibres have delivered 10% return over three years and 20% return over five years. The company's consistent buyback program reflects its strong cash generation capabilities and commitment to returning value to shareholders through regular capital return initiatives.
