The Board of Directors of Rane Brake Lining Limited ("Company") at its meeting held today approved the buyback by the Company of its fully paid up equity shares having a face value of Rs. 10/- (Rupees Ten) each, fully paid-up, for an aggregate amount not exceeding Rs.22 Crores (Rupees Twenty Two Crores only) (the "Maximum Buyback Size") at a price not exceeding Rs. 825 (Rupees Eight Hundred Twenty Five only) per Equity Share (the "Maximum Buyback Price" and such Buyback the "Buyback"). The Buyback shall be made from all shareholders of the Company (other than from the promoters and promoter group of the Company).
The Maximum Buyback Size represents 9.62% of the aggregate of the Company's paid-up equity share capital and free reserves based on the audited financial statements of the Company as at March 31, 2020 (being the latest available audited financial statements of the Company). Further, since the Maximum Buyback Size does not exceed 10% of the total paid-up equity share capital and free reserves of the company.
The Buyback will be conducted under the "open market route" through the stock exchange mechanism. The Buyback shall not be made from the promoters and promoter group of the Company.
The Maximum Buyback Size and Maximum Buyback Price do not include any expenses incurred for the Buyback like filing fees paid to SEBI, advisors' fees, Buyback Tax, stock exchange fees, brokerage costs, fees, turnover charges, taxes such as securities transaction tax, GST, buyback tax, and service tax (if any), stamp duty and other transaction charges.
At the Maximum Buyback Price and for the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 2,66,666 ("Maximum Buyback Shares") (comprising 3.37 % of the existing paid-up capital). If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the indicative Maximum Buyback Shares but will always be subject to the Maximum Buyback Size.
The Company shall utilize atleast 50% (fifty percent) of the amount earmarked as the maximum Buyback Size for the Buyback i.e Rs.11 Crores (comprising 4.81% of the existing paid-up capital and free reserves as on March 31, 2020) ("Minimum Buyback Size"). Based on the Minimum Buyback Size and the Maximum Buyback Price, the Company will purchase a minimum of 1,33,333 equity shares (comprising 1.69% of the existing paid-up capital).
Shares of RANE BRAKE LINING LTD. was last trading in BSE at Rs.639.65 as compared to the previous close of Rs. 656.05. The total number of shares traded during the day was 2787 in over 447 trades.
The stock hit an intraday high of Rs. 656.05 and intraday low of 633.2. The net turnover during the day was Rs. 1792386.