The board of directors (the "Board") of Kalpataru Power Transmission Limited (the "Company") at its meeting held today, has approved the buy-back by the Company of its equity shares of face value of Rs. 2/- (Rupees Two) each ("Equity Shares") from the open market through the stock exchange mechanism as prescribed under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended ("Buyback Regulations") and the Companies Act, 2013, as amended ("Companies Act"), and other applicable rules law, at a maximum price of Rs. 275/- (Rupees Two Hundred and Seventy Five only) per Equity Share ("Maximum Buyback Price") payable in cash, for an aggregate maximum amount of up to Rs. 200,00,00,000/- (Rupees Two Hundred Crores Only), which excludes any expenses incurred or to be incurred such as filing fees payable to the Securities and Exchange Board of India, advisors' fees, stock exchange fee for usage of their platform for Buyback, brokerage, applicable taxes such as buyback tax, securities transaction tax, and Goods and Services Tax, stamp duty, public announcement publication expenses, and other incidental and related expenses ("Transaction Costs") ("Maximum Buyback Size"), which represents 5.80% and 6.11% of the total paid-up Equity Share capital and free reserves (including securities premium account) as per the audited standalone financial statements and audited consolidated financial statements, respectively of the Company for the financial year ended March 31, 2020, from the equity shareholders of the Company, except promoter(s), members of the promoter group and persons in control of the Company ("Buyback"), which is within the maximum amount allowed under the board approval route under the Companies Act and the Buyback Regulations, and unless otherwise permitted under applicable law, the Company shall utilize at least 50% of the Maximum Buyback Size.
At the Maximum Buyback Price and for the Maximum Buyback Size, the indicative maximum number of Equity Shares to be bought back would be about 72,72,727 Equity Shares ("Maximum Buyback Shares") which is about 4.70% of the total number of paid-up Equity Shares of the Company as at March 31, 2020. 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 (assuming full deployment of Maximum Buyback Size) but will always be subject to the Maximum Buyback Size and will also be not more than 25% of the paid-up Equity Share capital of the Company as at March 31, 2020.
The Board also approved the formation of a buyback committee ("Buyback Committee") and delegated its powers to the Buyback Committee 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 Buyback.
Shares of KALPATARU POWER TRANSMISSION LTD. was last trading in BSE at Rs.192.3 as compared to the previous close of Rs. 188.55. The total number of shares traded during the day was 19144 in over 896 trades.
The stock hit an intraday high of Rs. 194.9 and intraday low of 186.9. The net turnover during the day was Rs. 3633440.