KPR Mills surges after buyback approval from SEBI
Coimbatore based textile and yarn player, KPR Mills, informed that it has SEBI approval for its buy back proposal, on Thursday.
The buyback was first set to execute in June 2019. The company had proposed buyback of upto 37,50,784 fully paid up equity shares of Rs. 5 each at a price of Rs. 702 per equity share for a maximum amount of Rs. 263,30,50,368 through the tender offer process. Though, the company later informed its inability in going forward with the buyback proposal owing to increase in the amount of buyback obligation after tax proposal in the Finance Bill 2019.
The stock price took a lot of beating after the cancelation of the buy back proposal. Stock price traded at Rs. 633 when it first informed about the buyback. It corrected 15 per cent to Rs. 540 in August 2019.
The announcement by finance minister on 20 September, regarding amendment in the Tax Policy vide The Taxation Laws (Amendment) Ordinance, 2019 No 15, that the buyback announced prior to July 5, 2019 are exempted from the tax implication, cleared its way for continuation of the buyback. Hence after this recent development, it again approached SEBI and received an approval for a buyback. The schedule and other disclosures regarding the buyback will be intimated to shareholders as per record date June 2019.
On Friday, the stock price touched intra-day high of Rs. 605 on BSE. At 11.30 pm stock traded at Rs. 597, up by 5 per cent.