Triveni Engineering gets approval for buyback offer to raise Rs65cr; stock ends in green

The board has approved buyback of fully paid-up Equity Shares having face value of Re1 each not exceeding 61.90 lakh equity shares.

Aug 18, 2020 04:08 IST India Infoline News Service

Triveni Engineering gained on Tuesday after the company received approval for buyback plan to raise about Rs65cr. The company has also submitted its draft letter for the offer.

On Sensex, Triveni stock ended at Rs75.10 per piece up 0.20%. The stock has also touched an intraday high and low of Rs76.65 per piece and Rs74.60 per piece respectively.

The board has approved buyback of fully paid-up Equity Shares having face value of Re1 each not exceeding 61.90 lakh equity shares. These would represent 2.50% of the company's total paid-up equity share capital as on March 2020.

For the buyback, the issue price is set at Rs105 per equity share which will be payable in cash for an aggregating nearly Rs65cr which is excluding taxes payable under Income Tax Act, 1961 and expenses to be incurred for the buyback like transaction costs viz. brokerage, securities transaction tax, GST, stamp duty, etc., which is 5.31% and 5.03% of the fully paid-up equity share capital and free reserves (including Securities Premium Account) as per the latest audited standalone and consolidated balance sheet of the Company for the financial year ended March 31, 2020.

Further, the company has set August 28, 2020, as the Record Date for determining the entitlement and the names of the Eligible Shareholders / Beneficial Owners to whom the letter of offer will be sent and who will be eligible to participate in the Buyback.

Axis Bank is the manager of the buyback. While KFin Technologies is acting as the registrar of the offer. 

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