Delta Corp board approves buyback plan of Rs 125 crore

In a BSE filing released on Saturday, Delta Corp, which deals in hotels and casinos in India, informed that the board of directors of the company has approved a proposal for buyback of fully paid-up equity shares of face value of Re 1 each from the members of the company (except promoters and persons in control of the company), representing 4.61 per cent of its total paid-up equity share capital as on December 31, 2019 on a standalone basis, for an amount Rs 125 crore (payable in cash).

Nevertheless, the amount, which is also the maximum buyback size, is less than 10 per cent of the aggregate total paid-up equity share capital and free reserves of the company, based on the latest audited statement of the company as on March 31, 2019 on a standalone and consolidated basis, for a price not exceeding Rs 100 per equity share, through the open market route, in accordance with the provisions of SEBI Regulations 2018 and Companies Act 2013. Delta Corp indicated that it would utilise at least 50 per cent of the total earmarked amount, i.e. at least Rs. 62.50 crore for the buyback.

For this purpose, the board has constituted a buyback committee, which comprises of Chairman Jaydev Mody, Managing Director Ashish Kapadia and Independent Director of the company Rajesh Jaggi. The committee has an absolute discretion to act and decide thereof, matters related to the proper execution of the buyback. Pursuant of SEBI guidelines, the board has also nominated Company Secretary Dilip Narendra Vaidya as the compliance officer and also, to redress the grievances of the shareholders regarding buyback.

At the time of market closing on Monday, the stock of Delta Corp Ltd was trading at Rs 62.45, up by 4.96 per cent against its previous close of Rs 59.50 on BSE.