However, the buyback will be carried out via the open market, which means that the buyback price will not be a fixed one, as compared to the tender offer route, where prices are pre-determined.
This is the second share buyback announced by Emami in the last three decades, with the previous one being carried out back in April 2023. Back then, Emami had also carried out an open market buyback at a maximum price of ₹450 per share.
Emami has fixed the maximum buyback price of ₹475 per share, which is a premium of 29% when compared to the stock’s closing price on Wednesday. The maximum number of shares that Emami plans to buyback from the open market are 59.36 lakh.
The company will utilize at least 75% of the amount earmarked as the maximum buyback size to repurchase shares, meaning ₹211 crore out of the earmarked ₹282 crore. 40% of the maximum buyback size, or ₹112.8 crore, will be utilized within the initial first half of the offer opening.
Emami’s maximum buyback size represents 9.28% and 9.98% of the aggregate of the total paid up capital and free reserves of the company.
In case the buyback is fully completed, promoter shareholding in Emami will rise to 55.6% from 54.84%, while public shareholding will decline to 44.4% from 45.16%. The shareholding pattern would vary depending on the quantum of the buyback completed.Emami’s board has also constituted a committee for the purpose of the buyback and the public announcement setting out the process, timeline and other details of the buyback will be released in due course.
Shares of Emami are off the highs of the day, currently trading 4.1% higher at ₹384.5. The stock is still down 27% so far in 2026.
