TV Today Network Ltd, will spend up to Rs 29.3 crore for a buyback of up to 10 per cent of equity of shares. The company will buyback up to 4.78 million shares at a maximum price of Rs 115 each.
TV Today will buy back shares at a premium price of 102 per cent from the company’s yesterday closing price of Rs 56.80. Shares in the company were up 0.35 percent at Rs 57 in a weak Mumbai market.
The buyback will open on March 16, while its last date is July 30, the company said in a statement to the National Stock Exchange (NSE). Post the buyback, the promoter holding in the company would increase from the existing 55.68 per cent to 65.68 per cent.
“The maximum offer price has been arrived at after taking into consideration factors such as the trends in the market price of the equity shares during the last six months prior to the date of the meeting held on 31 July, 2008 of the board for approval of buy-back, price-earning ratio and impact on other financial parameters.” the company said in its statement.
TV Today Network recorded a net profit of Rs 8.67 crore in the quarter ended December 2008, down 48% from the corresponding quarter in December 2007. The company, incorporated in 1999, currently runs four news and current affair channels – Aaj Tak, Headlines Today, Tez and Dilli Aaj Tak.