IndiaMART: Buyback plan of Rs 500 crore

IndiaMART released the information regarding its planned share buyback, which amounts to approximately Rs 500 crore. Using the proportional tender offer mechanism, IndiaMART Intermesh Ltd first revealed their buyback offer of 12.5 lakh equity shares on August 23.

On August 31, the buyback will begin, and it will end on September 6.

According to IndiaMART, the promoters' and related group shares might increase from 49.22 percent to 49.34 percent if there is complete participation in the buyback. The public and non-promoter shareholding of the post-buyback equity share capital might decrease from 50.78 percent to 50.66 percent.

According to IndiaMART, buybacks won't have a big impact on profitability, but it will cut down on the amount of money available for investment income. The company added that the buyback won't hinder with chances for expansion or cash flow from operations.

The largest online marketplace in India, IndiaMART, connects buyers with suppliers. The online channel is focused on giving purchasers, who may be individuals, SMEs, or large enterprises, a platform.

Source: Media Reports