JK Paper stock surges 4% after board approves share buyback

The board has approved the buyback of its fully paid-up equity shares having face value of Rs10 each at a price not exceeding Rs130/ equity share for an aggregate amount not exceeding Rs100cr from the shareholders of the company.

Apr 28, 2020 03:04 IST India Infoline News Service

JK Paper
JK Paper informed that the board has approved the buyback of its fully paid-up equity shares having face value of Rs10 each at a price not exceeding Rs130/ equity share for an aggregate amount not exceeding Rs100cr from the shareholders of the company.

The stock is currently trading at Rs104, up by Rs1.5 or 1.46% from its previous closing of Rs102.50 on the BSE.

The scrip opened at Rs106.70 and has touched a high and low of Rs106.70 and Rs101.10 respectively.

The buyback by the Company of its fully paid-up equity shares having face value of Rs10 each (Equity Shares) at a price not exceeding Rs130 per Equity Share (Maximum Buyback Price) and for an aggregate amount not exceeding Rs100cr (Maximum Buyback Size), from the shareholders of the Company excluding promoter, promoter group and persons who are in control of the Company, payable in cash via the "open market" route through the stock exchange mechanism under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (“Buyback Regulations”), as amended and the Companies Act, 2013, as amended (“Companies Act”), and other applicable rules (the process hereinafter referred to as the "Buyback"). 

The Buyback shall not exceed the Maximum Buyback size, which represents 5.67% and 5.71% of the aggregate of the total paid-up Equity Share capital and free reserves (including Securities Premium Account) of the Company, based on the audited standalone and consolidated financial statements of the Company and of the total paid up equity share capital of the Company for the period ended March 31, 2019, which is within the maximum amount allowed under the Board approval route under the Companies Act and the Buyback Regulations, and unless otherwise permitted under applicable law, the Company shall utilize at least 50% of the Maximum Buyback size, JK Paper said in the filing.

At the Maximum Buyback Price and for the Maximum Buyback size, the indicative maximum number of Equity Shares bought back would be 76.92 lakh ("Maximum Buyback Shares") which is 4.32% of the total number of paid-up Equity Shares of the Company as on March 31, 2019. If the Equity Shares are bought back at a price below, JK Paper said.

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