They sold 6L shares (worth 146cr) in 2Q FY22-23 and used the amount to do a buyback (at 14500) and extinguished 34500 shares (worth 50cr). On this they paid buyback tax (10cr).
Also they redeemed non-cumulative pref shares of promoters worth 14cr to decrease subordinated liabilities. Rest they moved to reserves.
The buyback actually led to promoter holding increasing beyond 75% to 75.05% so they will have to reduce it.
My thesis is also to use KAMA as a proxy for SRF with a margin of safety. Hope this stake-sale/buyback combination will lead to discount narrowing
Disclosure – Invested (small position), not a recommendation.
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