Setback for Indian Rayon offer

MUMBAI, OCT 15: Aditya Birla group company Indian Rayon’s buy-back proposal has received a lukewarm response from its shareholders as only around 11 per cent of its total paid-up share capital of Rs 67.48 crore responded to the offer. The finance committee of the board of directors has fixed the final cut-off price at Rs 85 a share.

The company had earmarked Rs 146 crore for the purpose, but will now pay only Rs 65 crore to buy back its own shares. Says shareholder, R L Mehta: “The buy-back will create less floating stock which would be a loss to the small shareholders.”