Techno Electric & Engineering Company Ltd approves buy back through open market route

The Board of Directors of Techno Electric & Engineering Company Limited at their meeting held today i.e. July 11, 2022 approved the proposal to buy back fully paid-up Equity Shares of the Company of face value of Rs. 2 each ("Equity Shares") from the members of the Company (other than the promoters, promoter group and persons in control of the Company) payable in cash, for an amount aggregating up to Rs. 130 crores (Rupees One Hundred Thirty crores only) ("Maximum Buyback Size") at a price not exceeding Rs. 325/- (Rupees Three Hundred Twenty Five only) per Equity Share ("Maximum Buyback Price" or "Offer Price"), through the open market route through the stock exchanges where the equity shares of the Company are listed.

The Maximum Buyback Size represents 7.26% & 7.25% of the aggregate of the fully paid-up share capital and free reserves as per the Standalone and Consolidated Audited accounts of the Company for the financial year ended 31st March, 2022 respectively (being the latest audited financial statements of the Company) which is not more than 10% of the fully paid-up share capital and free reserves of the Company.

The Maximum Buyback Size does not include transaction costs, namely brokerage, filing fees, advisory fees, intermediaries' fees, public announcement publication expenses, printing and dispatch expenses, applicable taxes such as buyback tax, securities transaction tax, goods and services tax, stamp duty etc. and other incidental and related expenses ("Transaction Costs").

Subject to the market price of the Equity Shares being equal to or less than the Maximum Buyback Price, the indicative maximum number of Equity Shares bought back would be 40,00,000 Equity Shares ("Indicative Maximum Buyback Shares"), comprising approximately 3.64% of the total paid-up equity share capital of the Company as of July 11, 2022. If the Equity Shares are bought back at a price lower than the Maximum Buyback Price, the number of equity shares bought back could exceed the Indicative Maximum Buyback Shares.

The Company shall utilize at least 50% of the amount embarked as the Maximum Buyback Size for the Buyback, i.e. Rs. 65 crores (Rupees Sixty Five crores only) ("Minimum Buyback Size") representing 3.63% & 3.62% of the aggregate of the fully paid-up share capital and free reserves as per the Standalone and Consolidated Audited accounts of the Company for the Financial year ended 31st March, 2022 respectively. Based on Minimum Buyback Size and the Maximum Buyback Price, the Company would purchase a minimum of 20,00,000 Equity Shares ("Minimum Buyback Shares").

The Board has constituted a Buyback Committee and has delegated its powers to the Buyback Committee to do or cause to be done all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient or proper in connection with the Buyback.

The public announcement setting out the process, timelines and statutory details of the Buyback will be released in due course.

Shares of Techno Electric & Engineering Company Limited was last trading in BSE at Rs. 316.75 as compared to the previous close of Rs. 306.30. The total number of shares traded during the day was 12295 in over 1055 trades.

The stock hit an intraday high of Rs. 319.90 and intraday low of 307.80. The net turnover during the day was Rs. 3878344.00.

Source : Equity Bulls

Keywords

TechnoElectricandEngineeringCompany INE285K01026 BuyBack OpenMarketPurchase