Shares of Emami Ltd. saw a significant rise of over 5% on Thursday, September 17, 2026, following the company's board approval for a substantial share buyback program. The board sanctioned the repurchase of fully paid-up equity shares worth up to ₹282 crore.
The buyback will be executed through the open market route on the stock exchanges. Emami has set a maximum price of ₹475 per equity share for the repurchase. Notably, the offer will exclude promoters, members of the promoter group, and persons in control, along with their associates.
Buyback Details and Market Reaction
On Thursday, Emami shares were trading at ₹388.10, marking a 5.05% increase from their previous close of ₹369.45. The stock opened the day at ₹375 and touched an intraday high of ₹396.30, reflecting strong investor confidence post-announcement.
Under the approved scheme, Emami could repurchase up to 59,36,842 equity shares at the maximum buyback price. This volume represents approximately 1.36% of the company's total paid-up equity share capital as of the board meeting date. Should shares be acquired below the ₹475 maximum, the actual number of shares bought back could be higher, constrained only by the total maximum buyback amount.
Company's Commitment and Timeline
Emami has committed to deploying at least 75% of the total amount earmarked for the buyback, equating to ₹211.50 crore, towards purchasing its equity shares. Based on the minimum buyback size and the maximum buyback price, this would translate to an indicative minimum of 44,52,632 shares.
Furthermore, the company stated that 40% of the maximum buyback size, which amounts to ₹112.80 crore, will be utilized within the initial first half from the opening of the offer. The maximum buyback size constitutes 9.28% and 9.98% of the aggregate of the company's total paid-up capital and free reserves, respectively, based on its audited consolidated financial statements as of March 31, 2026.
A dedicated Buyback Committee has been established by the board to oversee and execute the necessary actions. Emami also confirmed that a public announcement detailing the process, timelines, and other statutory information regarding the buyback will be released in due course.