Insecticides Share Buyback News: Insecticides (India) share price sky-rocketed today, reaching a new peak of ₹1,084.65. This 17% surge occurred during Wednesday’s intraday trading on the BSE after the company announced it would consider a share buyback proposal scheduled for Friday, August 30, 2024.
The company’s stock had already surpassed its previous high of ₹965.35, recorded on August 12. As of now, Insecticides (India) shares have jumped 36% just in August. This reflects a staggering 128% rise from its low of ₹475.50 back in June on the BSE.
As of 12:58 PM today, the share price of Insecticides (India) was trading at ₹1,039.50, up 12% compared to a modest 0.29% rise in the BSE Sensex.
Board Meeting Announcement of Insecticides (India)
In a recent exchange filing, Insecticides (India) revealed that its board of directors will meet on Friday, August 30, 2024, to discuss the buyback of fully paid-up equity shares via the tender offer route.
Buyback Frenzy in August
This development adds Insecticides (India) to a growing list of 11 companies that have collectively repurchased shares worth ₹5,388 crore this month. Among those joining the buyback wave are firms like Aarti Drugs, Transport Corporation of India, Nucleus Software Exports, Technocraft Industries (India), and Mayur Uniquoters, all of which have approved similar buyback proposals.
Why the Surge in Buybacks of Insecticides (India)?
Experts suggest that the sudden increase in share buyback proposals can be attributed to changes in India’s tax regime, set to take effect from October 1. These changes were disclosed in the Union Budget presented in July 2024 and will shift the tax burden from companies to shareholders, fundamentally changing buyback strategies. Currently, companies pay over 20% as a buyback tax, but shareholders offloading their shares during a buyback do not incur any tax.
Insecticides (India) – An Overview
Insecticides (India) is a major player in the agrochemicals sector, focusing on the manufacturing of pesticides, technical products, and other agricultural chemicals. The company caters to both domestic and international markets.
For the first quarter of FY25, the company reported an impressive 57% increase in earnings before interest, tax, depreciation, and amortisation (Ebitda) and a 68% rise in profit after tax.
Future Plans and Strategy of Insecticides (India)
The management has emphasized that Insecticides (India) aims to focus on growing its premium product segment in FY25. This will involve boosting demand generation and engaging in brand-building activities while ensuring a disciplined approach to both margins and working capital.
Government Initiatives and Opportunities for Insecticides (India)
Numerous initiatives by the Indian government aimed at enhancing manufacturing facilities, simplifying regulatory processes, and promoting exports, present new opportunities for Indian agrochemical companies on the global stage.
The “Make in India” initiative has significantly bolstered the agrochemical sector by encouraging domestic manufacturing, lowering regulatory hurdles, and facilitating infrastructure development.
The ‘Aatmanirbhar Bharat Abhiyan’ initiative underscores the importance of self-reliance, especially in sectors like agrochemicals. This move is designed to reduce dependency on imports and bolster competitiveness. Additionally, a proposed production-linked incentive system for the agrochemical sector is expected to further energize domestic manufacturing, create job opportunities, and elevate India’s global competitive edge, as highlighted in the FY24 annual report of Insecticides (India).
