KDDL gains 1% as company reveals buyback plan; to repurchase shares at 11% premium

KDDL plans to buy back up to 2.37 lakh equity shares with a face value of ₹10, subject to shareholder approval.

The buyback price has been fixed at ₹3,700 per share, which is a premium of 11% from KDDL's current market price. The company said that the total buyback consideration will not exceed ₹88 crore.

The company intends to repurchase up to 1.9% of the KDDL’s total equity from shareholders. The company’s promoters will also participate in the buyback.

The buyback will take place through the tender offer route, meaning that the company will repurchase the shares at the pre-determined price.

“The public announcement and the letter of offer setting out the process, timelines, and other requisite details will be released in due course in accordance with the Buyback Regulations,” the company said in a regulatory filing.

The total number of shares before the buyback is 1,25,37,117. Post-buyback, the total number of shares in the company will be 1,22,99,280 equity shares (assuming a 100% response to the buyback).

Although KDDL has consistently distributed dividends to its investors, this is the company's first share buyback. In 2021, the firm had conducted a rights issue.

The company's consolidated net profit increased by 63.73% to ₹34.81 crore in Q4 FY24, on a 16.16% increase in revenue from operations to ₹347.61 crore compared to Q4 FY23.

Shares of KDDL have surged over 127% in the last one year and nearly 29% in the last one month.

KDDL is one of India's top manufacturers of watch components, high-quality precision stamped components, and progressive tools for a variety of engineering applications. KDDL also controls India's largest retail network of luxury watches via its subsidiary, Ethos.