Fineotex Chemical Ltd board approves buy back of shares through open market purchase

The Board of Directors of Fineotex Chemical Ltd, at its meeting held today i.e. July 27, 2020, has, approved the buy-back by the Company of its equity shares of face value of Re. 2/- each ("Equity Shares") from the Open Market through stock exchange mechanism as prescribed under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 ("Buy-back Regulations") at a maximum price of Rs, 40/- (Rupees Forty Only) per Equity Share ("Maximum Buy-back Price") payable in cash, for an aggregate maximum amount of up to Rs. 4,40,00,000/- (Rupees Four Crores and Forty lakhs Only) excluding transaction costs viz. brokerage, advisor's fees, intermediaries fees, public announcement publication fees, filing fees, turnover charges, applicable taxes such as securities transaction tax, goods and services tax, income tax, stamp duty and other incidental and related expenses ("Transaction Costs") ("Maximum Buy-back Size"), which represents 2.99% and 2.60% of the total paid-up Equity Share capital and free reserves (including Securities Premium Account) as per the latest 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/beneficial owners of Equity Shares of the Company, except Promoter(s), members of Promoter Group and Persons acting in concert.

At the Maximum Buy-back Size and the Maximum Buy-back Price, the indicative maximum number of Equity Shares to be bought back under the Buy-back would be 11,00,000 (Eleven Lakhs) Equity Shares which represents 0.99% of the total number of Equity Shares of the Company. The Company shall utilize.at least 50% of the amount earmarked as the Maximum Buyback Size for the Buyback, i.e.. Rs. 2,20,00,000 (Rupees Two Crores and twenty lakhs only) ("Minimum Buyback Size"). However, the actual number of Equity Shares to be bought back during the Buy-back will depend upon the actual price paid (excluding the Transaction Costs) for the Equity Shares bought back and the aggregate actual amount utilised in the Buy-back.

As the Maximum Buy-back Size is not more than 10% of the total paid-up equity share capital and free reserves (including securities premium account) of the Company, the approval of shareholders of the Company is not required in terms of Section 68(2)(b) of the Act and Regulation 5(i)(b) of the Buy-back Regulations.

Shares of FINEOTEX CHEMICAL LTD. was last trading in BSE at Rs.30.45 as compared to the previous close of Rs. 28.65. The total number of shares traded during the day was 149775 in over 886 trades.

The stock hit an intraday high of Rs. 30.7 and intraday low of 28.95. The net turnover during the day was Rs. 4522631.

Source : Equity Bulls

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