RITES Ltd board approves buy back through tender offer at Rs. 265

The Board of Directors of RITES Ltd in their meeting held on September 18, 2020 has approved the buyback of the fully paid up equity shares of the Company of face value of Rs. 10/- each through tender offer.

The buyback will not be exceeding 96,98,113 (Ninety Six Lakh Ninety Eight Thousand One Hundred Thirteen) equity shares (representing 3.88% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 265 (Rupees Two Hundred Sixty Five only) per equity share (the "Buy Back Offer Price") payable in cash for an aggregate consideration not exceeding Rs. 257 Crore (Rupees Two Hundred Fifty Seven Crore only) (the "Buyback Offer Size") representing 9.97% & 9.76% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company, respectively for the financial year ended March 31, 2020 (the last audited financial statements available as on the date of Board meeting recommending the proposal of the Buyback) and is within the statutory limits of 10% (Ten Percent) of the aggregate of the fully paid-up equity share capital and free reserves under the board of directors approval route as per the provisions of the Companies Act, 2013 from all the equity shareholders of the Company, as on the record date, on a proportionate basis through a Tender Offer route in accordance the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the "Buyback Regulations") (hereinafter referred to as the "Buyback"), subject to all other applicable statutory approvals. The Buyback Offer Size does not include any expenses incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, advisors fees, public announcement publication expenses, printing, dispatch expenses, applicable taxes inter alia including buyback taxes, securities transaction tax, goods and services tax, stamp duty and other incidental and related expenses and other incidental and related expenses.

The Company has fixed 30th September, 2020 (EOD) as the record date for the purpose of ascertaining the eligibility of shareholders for Buyback of equity shares.

Shares of RITES Ltd was last trading in BSE at Rs.255.25 as compared to the previous close of Rs. 252.45. The total number of shares traded during the day was 40882 in over 1406 trades.

The stock hit an intraday high of Rs. 258.9 and intraday low of 251.7. The net turnover during the day was Rs. 10473349.

Source : Equity Bulls

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