KPR Mill Ltd
. on Thursday filed a release in reference to its earlier intimation dated July 11, 2019 stating its inability in going forward with the Buyback proposal because of the increase in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019.
As per the latest amendment in the Tax Policy vide The Taxation Laws (Amendment) Ordinance, 2019 No 15 dated September 20, 2019, buybacks announced prior to July 5, 2019 are exempted from the tax implication announced in Finance Bill 2019.
The company said that as its buyback falls under this category, it had sent a letter to Sebi requesting to proceed with the buyback as originally contemplated since KPR has adequate cash reserves to meet the buyback obligation assuming tax exemption.
The company added that Sebi has informed KPR that it could proceed with the buyback offer as originally contemplated.
In this regard, the company said that it wishes to proceed with the Buyback offer.
The schedule and other activities in this respect will be intimated in due course to the shareholders as on record date, i.e., June 19, 2019.
K P R Mill Ltd is currently trading at Rs596.20 up by Rs28.65 or 5.05% from its previous closing of Rs567.55 on the BSE.
The scrip opened at Rs589.40 and has touched a high and low of Rs605.65 and Rs585.35 respectively. So far 61,900 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs4,118.19cr.