Magna Electro Castings approves proposal to buyback shares worth Rs7cr

It represents 8.73% of the total number of equity shares in the paid-up share capital of the company at a price of Rs175 per equity share.

Sep 18, 2020 11:09 IST India Infoline News Service

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Magna Electro Castings Limited on Friday approved the proposal to buyback of not exceeding four lakh equity shares. It represents 8.73% of the total number of equity shares in the paid-up share capital of the company at a price of Rs175 per equity share.

The Buy Back Offer Price is payable in cash for an aggregate consideration not exceeding Rs7cr.

“The Buyback Offer Size represents 9.52% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited financial statements of the company for the financial year ended March 31, 2020 and is within the statutory limits of 10% of the aggregate of the fully paid-up equity share capital and free reserves under the Board of Directors approval route as per the provisions of the companies Act, 2013 from all the equity shareholders of the company,” the company informed the exchanges on Friday.

The company’s Board has fixed October 1, 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.

“The Board of Directors has constituted a Buyback Committee and delegated its powers to the Buyback Committee to do all such acts, deeds, matters and things as it may ,in its absolute discretion, deem necessary expedient, usual or proper in connection with the buyback,” it said. 

Magna Eletrocasting Ltd is currently trading at Rs154.35, down by Rs0.5 or 0.32% from its previous closing of Rs154.85 on the BSE.

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