KPR Mill down ~4% on withdrawing share buyback proposal

The company cancelled buyback post the budget to avert the newly applicable 20% buyback tax on listed cos.

Jul 12, 2019 09:07 IST India Infoline News Service

KPR Mills
Shares of KPR Mill are trading lower by ~4% after the company withdrew its buyback proposal of Rs263cr.

The company said, "We have today filed with Sebi our communication conveying that the increase in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019 was neither contemplated nor prevailing at the time of the consideration and the approvals of the board and shareholders."

KPR becomes the first company to cancel its buyback post the budget annoucement of buyback tax extended to listed public cos.

“We are not permitted to meet the buyback obligations beyond the amount approved by the Board of Directors and Shareholders of the Company and the same can also be effected only with the borrowed funds, which is prohibited by law. In the above circumstance, we are unable to file the 'Letter of Offer ' and go forward with the proposal, which has been intimated to Sebi,” KPR Mill added.

K P R Mill Ltd is currently trading at Rs585.80 down by Rs22.2 or 3.65% from its previous closing of Rs608 on the BSE.
The scrip opened at Rs571.25 and has touched a high and low of Rs589.10 and Rs570.05 respectively. So far 74,260 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs4,411.70cr.

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