Balrampur Chini Mills Ltd announces buyback through open market purchase

The Board of Directors of Balrampur Chini Mills Ltd at their meeting held today, i.e. 9th August, 2021 have approved buyback of fully paid-up equity shares of face value of Re. 1/- (Rupees One only) each of the Company ("Equity Shares") at a price not exceeding Rs. 410/­ (Rupees Four Hundred Ten only) per Equity Share ("Maximum Buyback Price") and for an amount not exceeding Rs. 215.25 crores (Rupees Two Hundred Fifteen Crores Twenty Five Lakhs only) excluding any other expenses incurred or to be incurred for the Buyback like filing fees payable to SEBI, Stock Exchanges fees, advisors fees, public announcement, publication expenses, transaction cost viz., brokerage, applicable taxes such as securities transaction tax, stamp duty, buyback tax, income tax etc., and any other incidental and related expenses ("Maximum Buyback Size"), from the open market through stock exchange mechanism in such manner as may be prescribed in the Companies Act, 2013 (as amended) and rules made thereunder and the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018 (as amended) ("Buyback Regulations") ("Buyback").

The Maximum Buyback Size represents 8.68% and 8.56% of the aggregate of the total paid-up equity capital and free reserves of the Company based on the audited standalone and consolidated financial statements of the Company, respectively, for last financial year ended on 31st March, 2021.

At the Maximum Buyback Price and the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 52,50,000 Equity Shares ("Maximum Buyback Shares"), which represent approximately 2.50% of the paid-up share capital of the Company as of 31st March, 2021. If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the Maximum Buyback Shares, but will always be subject to the Maximum Buyback Size. The Company shall utilise at least 50% of the amount earmarked as the Maximum Buyback Size for the Buyback i.e. Rs. 107.625 crore (Rupees One Hundred Seven Crore Sixty Two Lakhs Fifty Thousand only) ("Minimum Buyback Size"). Based on the Minimum Buyback Size and Maximum Buyback Price, the Company would purchase a minimum of 26,25,000 Equity Shares.

Shares of Balrampur Chini Mills Ltd. was last trading in BSE at Rs. 357.3 as compared to the previous close of Rs. 353.75. The total number of shares traded during the day was 40223 in over 1727 trades.

The stock hit an intraday high of Rs. 360 and intraday low of 348.2. The net turnover during the day was Rs. 14271418.

Source : Equity Bulls

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