The board of directors ("Board") of Delta Corp Limited ("Company") at its meeting held today i.e. March 28, 2020 has approved a proposal for the Company to buy-back of its fully paid-up equity shares of face value of Rs. 1 (Rupee One) each ("Equity Shares") from the members of the Company (except promoters and persons in control of the Company), representing 4.61% of its total paid-up equity share capital as on December 31, 2019, on a standalone basis, for an amount, payable in cash, aggregating up to Rs. 1,250,000,000 (Rupees One Hundred and Twenty-Five Crores only) ("Maximum Buy-Back Size"), which is less than 10% of the aggregate of the total paid-up equity share capital and free reserves of the Company, based on the latest audited financial statements of the Company as at March 31, 2019, on a standalone basis and consolidated basis, for a price not exceeding Rs. 100 (Rupees One Hundred only) per Equity Share ("Maximum Buy-Back Price"), through the open market route through the Indian stock exchanges, in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended ("SEBI Buy-Back Regulations") and the Companies Act, 2013 and the rules made thereunder ("Buy-Back").
The Maximum Buy-Back Size does not include any expenses or transaction costs incurred or to be incurred for the Buy-Back, such as, brokerage, filing fees, advisory fees, intermediaries' fees, public announcement publication expenses, printing and dispatch expenses, applicable taxes such as BuyBack tax, securities transaction tax, goods and services tax, stamp duty, etc., and other incidental and related expenses.
At the Maximum Buy-Back Price and the Maximum Buy-Back Size, the indicative maximum number of Equity Shares bought back would be 12,500,000 (One Crore Twenty Five Lakhs) Equity Shares ("Maximum Buy-Back Shares"), comprising approximately 4.61% of the total paid-up equity share capital of the Company, as of December 31, 2019, on a standalone basis. If the Equity Shares are bought back at a price below the Maximum Buy-Back Price, the actual number of Equity Shares bought back could exceed the Maximum Buy-Back Shares, but will always be subject to the Maximum Buy-Back Size. The Company shall utilise at least 50% of the amount earmarked as the Maximum BuyBack Size for the Buy-Back, i.e. Rs. 1,250,000,000 (Rupees One Hundred and Twenty-Five Crores only) ("Minimum Buy-Back Size"). Based on the Minimum Buy-Back Size and Maximum Buy-Back Price, the Company would purchase a minimum of 6,250,000 Equity Shares.
The Board has constituted a buyback committee ("Buy-Back Committee"), comprising Mr. Jaydev Mody, Chairman, Mr. Ashish Kapadia, Managing Director and Mr. Rajesh Jaggi, Independent Director of the Company. The Buy-Back Committee has the power to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the Buy-Back.
Shares of DELTA CORP LTD. was last trading in BSE at Rs.59.5 as compared to the previous close of Rs. 56.7. The total number of shares traded during the day was 224856 in over 546 trades.
The stock hit an intraday high of Rs. 59.5 and intraday low of 59.05. The net turnover during the day was Rs. 13378497.