K P R Mill board approves 22.36 lakh buyback of equity shares; Stock plunges ~5%

8 Feb 2022 , 11:34 AM

The Board of Directors of K.P.R. Mill Limited at their Meeting held on February 07, 2022 have approved the buyback of not exceeding 22,36,000 fully paid-up equity shares of face value of Re. 1 each (representing 0.65% of the total number of fully paid-up equity shares in the paid-up share capital of the Company) at a price of Rs805/- per equity share payable in cash for an aggregate consideration not exceeding Rs. 179,99,80,000 representing 9.53% and 7.73% of the aggregate of the fully paid-up equity share capital and free reserves.

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, as on the record date, on a proportionate basis through a Tender Offer route in accordance the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the “Buyback Regulations”) (hereinafter referred to as the “Buyback”), subject to all other applicable statutory approvals.

According to the filing, the Buyback Offer Size does not include any expenses incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, advisors fees, public announcement publication expenses, printing, dispatch expenses, applicable taxes inter alia including buyback taxes, securities transaction tax, goods and services tax, stamp duty and other incidental and related expenses.

The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations, said Company.

At around 11:34 AM, K P R Mill was trading at Rs657.80 apiece down by Rs33.75 or 4.88% on the BSE.