Mumbai: Market regulator Securities and Exchange Board of India (Sebi) on Monday allowed the Deccan Chronicle Holdings Ltd to buy-back 3.45 crore shares or 14.17 per cent equity from the market at an estimated cost of Rs 270 crore.

This will be the second time the Deccan Chronicle would come out with an offer to buy-back its shares, following which the equity of the promoters in the company could go up to 73.83 per cent from 63.37 per cent.

Sebi has exempted Deccan Chronicle from making the mandatory public announcement under the Takeover Code before coming out with the buy-back offer. It has, however, asked the company ‘not of seek any further exemption pursuant to any further buy-back’.

The company had come out with the first buy-back offer in August 2009 when it bought back 4.84 per cent of the total share capital.

Deccan Chronicle had earlier in January 2011 obtained the approval of shareholders to purchase equity of Rs 2 each at a price not exceeding Rs 189 per share for an aggregate amount of up to Rs 270 crore.

In case of 100 per cent response to the buy-back offer, the equity of promoter group will go up to 73.83 per cent in the company from 63.37 per cent.

(Agencies)