Kalpataru Power Transmission Limited to keep corporate office construction in abeyance

The board of directors of Kalpataru Power Transmission Limited, at its meeting held on December 08, 2020, has authorised capital expenditure of approx. Rs. 207 Crore towards purchase of land and will further incur approx. Rs.170 Crore towards construction, municipal charges, taxes and for other approvals for development & construction of corporate office of about 1,79,000 sq. ft. of leasable area near its existing office at Santacruz, Mumbai.

Given the size of the transaction, it required no shareholder approval. The Company has ensured due process and fairness through a valuation (with two international valuation experts), audit committee review and board review before approving the same, in accordance with Section 188 of the Companies Act, 2013 and applicable provisions of SEBI (LODR) Regulations, 2015. While approving the proposed transaction, the Company's board of directors ensured a rigorous process of obtaining valuation reports, reviewing the material terms, pricing fairness, and multiple factors to ensure that the interests of the Company were kept paramount.

While the abovementioned proposed transaction was in the best interest of the company, to be undertaken in its ordinary course of business and at arm's length terms, wherein the land to be purchased was from a related party of the Company.

Since the disclosure was made on December 08, 2020, the Company has received certain observations and feedback from investors and on a reconsideration, the management has further reviewed the matter and decided to keep the proposal of construction of corporate office in abeyance. The abeyance proposal will again be presented to Board of Directors for necessary advice and directions.

Shares of KALPATARU POWER TRANSMISSION LTD. was last trading in BSE at Rs.303.45 as compared to the previous close of Rs. 325.75. The total number of shares traded during the day was 130289 in over 6459 trades.

The stock hit an intraday high of Rs. 326.5 and intraday low of 297.9. The net turnover during the day was Rs. 39897146.

Source : Equity Bulls

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