Great Eastern Shipping Buyback: Have you ever wondered how overseas shipping transportation works? How are the petroleum products transported from the gulf countries to our homeland? Such transportation is carried out by big transportation companies that employ ships and tankers to carry out the smooth trade of these products. One such company is Great Eastern Shipping Company Limited. Founded in 1948, Great Easter is one of the largest and among the oldest names in the private shipping industry of our country.
Being one of the largest private shipping service providers in India, Great Eastern Shipping has a prominent presence in the maritime trade of crude oil, various other petroleum products, gasses, etc. The company currently has a total of 45 vessels, 31 tankers, and 14 dry bulk carriers in its work. In addition to this, the company is also involved in numerous offshore and production activities conducted by its subsidiary Greatship India Limited.
Great Eastern Buyback Details
The board of directors approved the proposal for buyback in the meeting held on 27th December 2021. Through the Great Eastern Shipping Buyback, the company would be buying a total of 67 lakh shares having a face value of ₹10 each. The following table gives the information of the buyback in detail:
Great Eastern Buyback Timetable
|Buyback Approval Date||27th December 2021|
|Buyback Announcement Date||27th December 2021|
|Buyback Period||7th January 2022 – 6th July 2022|
|Name of the Security||Great Eastern Shipping Company (GESHIP)|
|Issue Type||Open Market through Stock Exchanges|
|Issue Size (Amount)||₹ 225 Cr (approx.)|
|Issue Size (Shares)||67,56,756 Equity Shares|
|Face Value||₹ 10 Per Equity Share|
|Buyback Price||₹ 333 Per Equity Share|
|Listing Exchanges||BSE and NSE|
The board of directors of the company approved a share buyback of 67,56,756 equity shares at a face value of ₹10 per share representing a share of 4.60% of the total paid-up capital of the company. The buyback price is set at ₹333 per equity share bought back. With the announcement of buyback, the share price of Great Eastern Company surged up nearly 5% and closed at ₹290 on 27th December 2021. As of 18th January 2022, the share price closed at ₹315.
Objects of the Issue
As per the official announcement made by the company management, the following are the objectives to be fulfilled by the buyback:
- To reduce the number of shares held by investors in the market and to increase the earnings per share (EPS) of the remaining shareholders and the book value of each share;
- To effectively utilize the net cash proceeds; and
- To improve key return ratios like return on equity capital over the long term.
Great Eastern Buyback Registrar
KFin Technologies Private Limited
Selenium Tower B, Plot No. 31- 32,
Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad 500 032, India
Phone: +91-40-6716 1631
Great Eastern Buyback Lead Manager
Kotak Mahindra Capital Company Limited
27BKC, 1st Floor, Plot no. C-27,
“G” Block, Bandra Kurla Complex,
Bandra (East), Mumbai 400 051
Phone: +91-22-4336 0128
The above stated is the information regarding the Great Eastern Shipping Company Buyback of equity shares. However, an investor must note that the shares held by him must be in the dematerialized form. We advise every investor to perform thorough research before making any investment-related decision. Until then, Happy Investing!