I recently started tracking the company. While everything looks great in terms of growth and execution, there are 2 things I could not understand.
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What is the source of funds utilized for buyback? The buyback document says that company is returning excess cash to shareholders but where is the excess cash? The balance sheet doesn’t seems have adequate investment/cash to fund it.
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Why do a buyback in the first place. The company has approx Rs. 300 cr of capex lined up (200 cr for dahej and 100cr for Nissan JV)
Request everyone to please clarify.