Balrampur Chini Mills Ltd board approves buy back of equity shares at Rs. 180

The Board of Directors of Balrampur Chini Mills Ltd at their meeting held today, i.e. June 23, 2020 ("the Board Meeting"), has approved the buyback of fully paid up Equity Shares of face value of Rs. 1 (Rupee One only) each not exceeding 1,00,00,000 (One Crore) Equity Shares (representing 4.55% of the total paid-up equity share capital of the Company as on March 31, 2020) at a price of Rs. 180 (Rupees One Hundred Eighty only) per Equity Share payable in cash for an aggregate amount not exceeding Rs. 180,00,00,000 (Rupees One Hundred Eighty Crore only), excluding taxes payable under Income Tax Act, 1961 and expenses to be incurred for the buyback like transaction costs viz. brokerage, securities transaction tax, GST, stamp duty, etc., which is 7.87% and 7.79% of the fully paid-up equity share capital and free reserves (including Securities Premium Account) as per the latest audited standalone and consolidated balance sheet of the Company for the financial year ended March 31, 2020, respectively, on a proportionate basis from the shareholders of the Company, through the "Tender Offer" route using mechanism for acquisition of shares through stock exchange as prescribed under Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018, as amended (the "Buyback Regulations") and the Companies Act, 2013 and rules made thereunder (the "Act").

The board noted the intention of the Promoters and Promoter Group of the Company to participate in the Buyback.

The Board has fixed Friday, 3rd July, 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 also appointed "Axis Capital Limited" as the 'Manager' to the Buyback.

Shares of BALRAMPUR CHINI MILLS LTD. was last trading in BSE at Rs.134.7 as compared to the previous close of Rs. 131.45. The total number of shares traded during the day was 185090 in over 3637 trades.

The stock hit an intraday high of Rs. 135.2 and intraday low of 132.65. The net turnover during the day was Rs. 24823732.

Source : Equity Bulls

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