The Board of Directors of IIFL Securities Ltd at their meeting held today has approved Buy-back of equity shares of the Company.
The Buy-back of the Company's fully paid up equity shares having a face value of Rs. 2 (Indian Rupee Two Only) each (the "Equity Shares"), from the members of the Company (except promoters, promoter group and persons in control of the Company) at a price not exceeding Rs. 54/- (Rupees Fifty Four Only) per Equity Share ("Maximum Buyback Price"), and such aggregate amount, Rs. 90 crores (Rupees Ninety Crores only) ("Maximum Buyback Size"), representing 14.46% and 11.53% of the aggregate of the total paid-up capital and free reserves of the Company based on the latest audited financial statements of the Company as at March 31, 2020 on a standalone and consolidated basis, respectively (which is less than 15% of the total paid up capital and free reserves of the Company), through the open market route through the Indian Stock Exchanges.
The Maximum Buyback Size does not include transaction costs, namely applicable taxes such as buyback tax, securities transaction. tax, goods and service tax, stamp duty, filing fees, advisors' fees, brokerage, public announcement expenses, expenses and other incidental and related expenses ("Transaction Costs").
The indicative maximum number of Equity Shares bought back at the Maximum Buyback Size and the Maximum Buyback Price would be 1,66,66,666 Equity Shares ("Maximum Buyback Shares"), comprising approximately 5.21 % of the paid-up equity share capital of the Company as of March 31, 2020 (on both, standalone and consolidated basis). 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 Maximum Buyback Shares, but will always be subject to the Maximum Buyback Size. The Company shall utilise at least 50% of the amount earmarked as the Maximum Buyback Size for the Buyback, i.e. Rs. 45 crores (Rupees Forty Five Crores only) ("Minimum Buyback Size"). Based on the Minimum Buyback Size and Maximum Buyback Price, the Company would purchase a minimum of 83,33,333 Equity Shares.
The Board has also constituted a Committee for the purpose of the Buy-back (the "Buyback Committee") and has delegated its powers to the Buyback Committee to do or cause to be done all such acts, deeds, matters and things, in its discretion, deem necessary in connection with the Buyback.
Shares of IIFL Holdings Limited was last trading in BSE at Rs. 45.65 as compared to the previous close of Rs. 45.25. The total number of shares traded during the day was 41,000 and the deliverable quantity was 20,294.
The stock hit an intraday high of Rs. 46.35 and intraday low of Rs. 45.25.