Apollo Tyres on Friday said the Special Court dealing with the benami shares of the securities scam of 1991-92 has approved the company's and management's bids for a block of shares amounting to around 15.1 per cent of the equity of the company.
Sources said the court approved the bid for Rs 90 a share on Wednesday.
Today, however, the company reported to the court that the promoters of the company, the Kanwars, will buy back 4.9 per cent, while the company itself will buy back 10.12 per cent shares.
The company's counsel P Chidambaram confirmed that the bid of Rs 90 a share has been approved by the court. But he declined to comment on the percentage of shares being bought back by the promoters or the company.
The meeting of the board on May 9, which will consider the accounts for the year ended March 31, 2003, will also approve the buyback pursuant to the orders of the Supreme Court as well as the Special Court, Mumbai.
The promoters of Apollo Tyres have the first right of refusal for the 15.1 per cent shares which is on the block. The custodian had invited bids for the entire block of 54.8 lakh shares. Two bids were received apart from Apollo's.
Punjab National Bank had put in the highest bid at Rs 80 a share. The court then invited the promoters to improve upon the bid as per the prescribed procedure.
The promoters currently hold 36.97 per cent in the company, while the public own 36.05 per cent.
