Asahi Songwon Colors board approves buyback at Rs. 400 through tender offer

The Board of Directors of Asahi Songwon Colors Ltd has approved the buyback of fully paid up Equity Shares of face value of Rs. 10 (Rupee Ten only) each not exceeding 2,40,000 Equity Shares (representing 2.00% of the total paid-up equity share capital of the Company as on March 31, 2022) at a price of Rs. 400 (Rupees Four Hundred only) per Equity Share (the "Buyback Offer Price") payable in cash for an aggregate amount not exceeding Rs. 9,60,00,000 (Rupees Nine Crore and Sixty Lakhs Only) (the "Buyback Offer Size"), excluding taxes payable under Income Tax Act, 1961 and expenses to be incurred for the buyback like transaction costs viz. brokerage, taxes such as securities transaction tax, GST, stamp duty, printing and dispatch expenses etc., which is 3.81% and 3.97% of the fully paid-up equity share capital and free reserves (including Securities Premium Account) as per the latest audited standalone and consolidated financial statements of the Company for the financial year ended March 31, 2022 (the last audited financial statements available as on the date of Board Meeting recommending the proposal of the Buyback) and is within the statutory limits of 10% (Ten Percent) of the aggregate of the fully paid-up equity share capital and free reserve s 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 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 there under (the "Act").

The Board has fixed June 03, 2022 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 has constituted a committee called "Buyback Committee" and delegated the necessary authority to the Buyback Committee of the Board 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 Asahi Songwon Colors Limited was last trading in BSE at Rs. 306.20 as compared to the previous close of Rs. 309.90. The total number of shares traded during the day was 1114 in over 157 trades.

The stock hit an intraday high of Rs. 316.80 and intraday low of 305.05. The net turnover during the day was Rs. 343515.00.

Source : Equity Bulls

Keywords

AsahiSongwonColors INE228I01012 Buyback TenderOffer