MPS Ltd Board approves Buyback of Equity Shares at Rs. 900

The Board of Directors of MPS Ltd, at its meeting held on Wednesday, October 27, 2021 has approved the buyback of fully paid-up equity shares having a face value of INR 10 (Indian Rupee Ten only) each ("Equity Shares"), not exceeding 9,44,444 (Nine Lakhs Forty Four Thousand Four Hundred and Forty Four only) Equity Shares (representing upto 5.23% of the total paid up Equity Share capital of the Company as on 31st March, 2021) at a price of INR 900 (INR Nine Hundred only) per Equity Share payable in cash for an aggregate amount not exceeding INR 85,00,00,000 (INR Eighty Five Crores only), excluding tax payable under Income Tax Act, 1961 and any expenses incurred or to be incurred for the buyback viz. brokerage costs, fees, turnover charges, taxes such as tax on buyback, securities transaction tax and goods and services tax (if any), stamp duty, printing and dispatch expenses, if any, filing fees to SEBI, advisor/legal fees, public announcement publication expenses and other incidental and related expenses and charges ("Transaction Costs") (such maximum amount hereinafter referred to as the "Buyback Offer Size") which represents 21.50% and 20.35% of the fully paid-up Equity Share capital and free reserves as at September 30, 2021, ("being the latest standalone and consolidated un-audited & limited reviewed condensed interim financial statements as on September 30, 2021, available after the audited financial statements for the period ended March 31, 2021, as on the date of Board Meeting recommending the proposal for the Buyback"), on a standalone and consolidated basis respectively, to be sourced out of the free reserves of the Company (retained earnings) and/or such other source as may be permitted by the Buyback Regulations or the Act, from all the Equity Shareholders/ Beneficial Owners of the Equity Shares of the Company, including the Promoter(s) as on the record date, to be announced in this regard, through the "tender offer" route, on a proportionate basis as prescribed under the SEBI Buyback Regulations. Members of the promoter and promoter group of the Company have confirmed their intention to participate in the proposed Buyback. Ernst & Young Merchant Banking Services LLP have been appointed as the 'Manager' to the Buyback.

The proposed Buyback is subject to approval of shareholders by way of a special resolution through a postal ballot. The process, timelines and other requisite details with regard to the postal ballot will be separately communicated in due course.

The process, record date, timelines and other requisite details of the Buyback will be set out in the public announcement and the letter of offer, in accordance with the Buyback Regulations.

The Board has constituted the Buyback Committee ("Committee") and have authorized the Committee to do all such acts, deeds, matters and things as it may at its absolute discretion, deem necessary, expedient, usual or proper in connection with the Buyback.

Shares of MPS Limited was last trading in BSE at Rs. 729.50 as compared to the previous close of Rs. 716.15. The total number of shares traded during the day was 3314 in over 403 trades.

The stock hit an intraday high of Rs. 739.00 and intraday low of 711.90. The net turnover during the day was Rs. 2416392.00.

Source : Equity Bulls

Keywords

MPS INE943D01017 Buyback