Garware Technical Fibres Limited board approves buyback of 3,17,391 shares at Rs. 2300 per share

The Board of Directors of Garware Technical Fibres Limited (the "Company") at its meeting held today i.e., Friday, November 27, 2020 ("Board Meeting"), have approved the proposal for buyback of the equity shares of the Company.

The board approved the proposal for buyback of up to 3,17,391 (Three Lakhs Seventeen Thousand Three Hundred Ninety One) fully paid up equity shares of the Company having a face value of INR 10/- (Indian Rupees Ten Only) ("Equity Shares" and such buyback "Buyback") from all shareholders / beneficial owners of the Equity Shares of the Company, including promoters and members of the promoter group, through the "tender offer" route, using mechanism for acquisition of shares through stock exchange, at a price of INR 2,300/- (Indian Rupees Two Thousand Three Hundred Only) per Equity Share ("Buyback Offer Price"), payable in cash, for an aggregate amount not exceeding INR 72,99,99,300/- (Indian Rupees Seventy Two Crores Ninety Nine Lakhs Ninety Nine Thousand Three Hundred only), excluding expenses to be incurred for the Buyback viz. brokerage, costs, fees, turnover charges, taxes such as buyback tax, securities transaction tax and goods and services tax (if any), stamp duty, advisors fees, printing and dispatch expenses and other incidental and related expenses and charges ("Buyback Offer Size"). The resultant Equity Shares to be bought back at the Buyback Offer Price are 3,17,391 Equity Shares, representing 1.52% and 1.45% of the total Equity Shares in the total paid-up equity share capital of the Company as on the date of the Board Meeting and of the total Equity Shares in the total paid-up equity share capital of the Company as on March 31,2020, respectively.

The Buyback Offer Size represents 9.45% and 9.91 % of the aggregate of the Company's fully paid-up capital and free reserves as per the latest standalone and consolidated audited financia' statements of the Company, respectively, as on March 31, 2020. Further, the Buyback Offer Size represents 9.50% and 9.96% of the aggregate of the Company's fully paid-up capital and free reserves as per the latest standalone and consolidated audited financial statements of the Company, respectively, as on March 31, 2020, as adjusted for the reduction of (i) paid-up share capital aggregating to INR 94,65,000; and (ii) securities premium account aggregating to INR 3,06,29,308.10, that the Company undertook pursuant to an order dated 13th February, 2020 passed by the National Company Law Tribunal, Mumbai Bench.

Friday, 11th December, 2020 has been fixed as the Record Date for determining the entitlement and the names of the eligible shareholders/beneficial owners to whom the letter of offer will be sent and who will be eligible to participate in the Buyback.

The Board of Directors also noted the intention of certain promoters and members of the promoter group of the Company of participating in the proposed Buyback.

Shares of Garware Technical Fibres Ltd was last trading in BSE at Rs.2278 as compared to the previous close of Rs. 2141.55. The total number of shares traded during the day was 3523 in over 892 trades.

The stock hit an intraday high of Rs. 2298 and intraday low of 2135. The net turnover during the day was Rs. 7772397.

Source : Equity Bulls

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