GHCL had a conference call with analysts to address questions on its buyback. Click on pdf to read full transcript. 

Key Remarks by Management

The company has completed the buyback in a record time of one month, intending an outlay of Rs.70 Crores. In addition to this, the board has recently concluded board meeting has approved an interim dividend of Rs.3 per share with a total outlay of Rs.34 Crores. This has been made possible due to sound business performance and strong operating cash flows.

On doing another buyback at current low price due to market crash: "Buyback has certain provisions under which the company cannot buyback between one buyback to another buyback, there has to be gap of twelve months. The first buyback we have already completed on end of February, any further buyback under the provision of the company’s act and the SEBI regulation, we cannot have within one year. Of course, opportunity is there but legally we cannot do that right now."

Demerger: the board has approved for a scheme of demerger wherein both chemical and textile business has been split into separate entities. Both of which will be listed on the stock exchange upon NCLT approval. The services of GHCL will be allotted shares in the new company in the swap ratio of 1:1, one share of Rs.2 each for every share of Rs.10 held in the GHCL. Process will complete in 12-15 months. 

Coronavirus: the recent Coronavirus outbreak has resulted in not just health emergency across the world but is also raising concerns of global economic slowdown impacting various businesses. Though it is difficult to predict, how this will impact the businesses going forward; however, currently there is no major impact on each of our business segments.