IndiaMART InterMESH Ltd board approves buyback of 12,50,000 shares through tender offer route

The Board of Directors of IndiaMART InterMESH Ltd at its meeting held today i.e., Thursday, July 20, 2023, have approved the proposal for buyback of 12,50,000 Equity Shares fully paid up having a face value of Rs. 10/- each (Rupee Ten Only) ("Equity Shares") from all the shareholders/ beneficial owners of the Equity Shares of the Company, including promoters and members of the promoter group, as on Record Date, which will be decided subsequently, through the "tender offer" route, on a proportionate basis, 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 ("SEBI") and the Companies Act, 2013 and Rules made thereunder, as amended from time to time, at a price of Rs. 4000/- (Rupees Four Thousand only) per Equity Share ("Buyback Price"), payable in cash, for an aggregate amount not exceeding Rs. 500 Crores (Rupees Five Hundred Crores only), excluding any expenses incurred or to be incurred for the buyback viz., brokerage costs, fees, taxes such as buyback tax, securities transaction tax and goods and services tax (if any), stamp duty, printing and dispatch, if any, filing fees to SEBI and any Appropriate Authorities, stock exchange charges, 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").

The Equity Shares proposed to be bought back at the Buyback Offer Price are 12,50,000 Equity Shares, representing 2.04%, of the total number of Equity Shares in the total existing paid-up equity capital of the Company as on June 30, 2023.

The Buyback Offer Size represents 24.12% and 24.33% of the aggregate of the Company's fully paid-up equity capital and free reserves based on last Audited condensed interim Standalone and Consolidated Financial Statements of the Company for the period ended June 30, 2023, respectively, 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 of the SEBI Buyback Regulations. The Board of Directors also noted the intention of promoters and promoter group of the Company of participating 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 Buyback offer is subject to the approval of the shareholders by way of a special resolution through a postal ballot. The process, record date, timelines and other details will be communicated in the public announcement and the letter of offer, to be published in accordance with the Buyback Regulations.

Shares of Indiamart Intermesh Limited was last trading in BSE at Rs. 2899.30 as compared to the previous close of Rs. 2873.50. The total number of shares traded during the day was 12335 in over 1903 trades.

The stock hit an intraday high of Rs. 2924.25 and intraday low of 2855.85. The net turnover during the day was Rs. 35660940.00.

Source : Equity Bulls

Keywords

IndiamartIntermesh INE933S01016 Buyback TenderOffer