Triveni Engineering and Industries Ltd board approves buyback through tender offer

The board of directors of Triveni Engineering and Industries Limited (the "Company") at its meeting held on November 5, 2022 has considered and approved the proposal for buyback of fully paid up equity shares of the Company having a face value of INR 1/- (Indian Rupee One Only) ("Equity Shares" and such buyback "Buyback") from all shareholders/ beneficial owners of the Equity Shares of the Company, as on record date, which will be decided subsequently, on a proportionate basis, 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 such other circulars or notifications issued by the Securities and Exchange Board of India and the Companies Act, 2013 and rules made thereunder, as amended from time to time, at a price of INR 350/- (Indian Rupees Three hundred fifty only) per Equity Share ("Buyback Offer Price"), payable in cash, for an aggregate amount not exceeding INR 800,00,00,000/- (Indian Rupees Eight hundred crores only), excluding expenses to be incurred for the Buyback 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, stock exchange charges, advisor/ legal fees, public announcement publication expenses and other incidental and related expenses and charges ("Buyback Offer Size"). The resultant Equity Shares to be bought back at the Buyback Offer Price shall not exceed 2,28,57,142 Equity Shares, representing 9.45%,of the total number of Equity Shares in the total paid-up equity capital of the Company as on September 30, 2022.

The Buyback OfferSize represents 24.51 % and 24.48% of the aggregate of the Company's fully paid-up equity capital and free reserves as per the latest standalone and consolidated audited financial statements of the Company, respectively, for the half year ended September 30, 2022, which is less than 25% of the aggregate of the total paid-up capital and free reserves of the Company in accordance with Regulation 4(i) of the SEBI Buyback Regulations.

The Buyback Offer Price represents premium of 29.99% and 29.82% over the closing price of the Equity Shares on NSE and BSE, respectively, on October 27, 2022 being the day preceding the date when intimation for considering and approving the proposed Buyback offer at the Board Meeting was sent to the Stock Exchanges.

The Board of Directors also noted the intention of the promoters and members of the promoter group of the Company to participate in the proposed Buyback.

The Board has constituted a committee called 'Buyback Committee' and delegated its powers to do such acts, deeds, matters, and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in relation to the proposed Buyback. The Board has appointed Ms Geeta Bhalla, Group Vice President & Company Secretary as the compliance officer and Ambit Private Limited as the Manager for the purposes of the proposed Buyback.

Shares of Triveni Engineering & Industries Limited was last trading in BSE at Rs. 270.85 as compared to the previous close of Rs. 262.20. The total number of shares traded during the day was 44174 in over 1244 trades.

The stock hit an intraday high of Rs. 274.20 and intraday low of 264.00. The net turnover during the day was Rs. 11892821.00.

Source : Equity Bulls

Keywords

TriveniEngineeringandIndustries INE256C01024 Buyback TenderOffer