Gokul Refoils to issue buyback at a floor price of Rs12 per share soon; stock clocks upper circuit

Through the buyback, Gokul plans to raise about Rs39.48cr.

Aug 05, 2020 04:08 IST India Infoline News Service

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Gokul Refoils on Wednesday ended on its upper circuit limit of Rs16.25 per piece on Sensex gaining by nearly 5%. Investors were upbeat as the company has submitted its draft for buyback offer. The company has intimated about buyback details like floor price, issue size, the number of equity shares, paid-up share capital and record date.

Gokul informed exchanges that the company proposes a buyback of a maximum 3,29,00,000 fully paid-up Equity Shares having a face value Rs2 each.

The floor price for the buyback is set at Rs12 per equity share which is currently at a discount compared to the company's market price on exchanges.

The buyback size represents 15.32% and 12.98% of the fully paid-up Equity Share capital and free reserves as per the latest available audited financial statements of the company for the financial year ended March 31, 2020, on standalone and consolidated basis. Through the buyback, Gokul plans to raise about Rs39.48cr.

Also, the equity shares proposed to bought back constitutes 24.94% of issued, subscribed and paid-up Equity Capital of the Company.

Gokul Refoils said, "The Letter of Offer will be sent to the Equity Shareholder(s) / Beneficial Owner(s) of Equity Shares of the Company as on the Record Date i.e. August 14, 2020."

Further, according to Gokul, the payment of consideration shall be made through NECS (subject to availability of all information for crediting the funds), demand drafts/pay order, or similar instruments payable at par at all the centres where the company is accepting applications. 

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