Welspun India Ltd board approves buyback at Rs. 120 per share

The Board of Directors of Welspun India Ltd at their meeting held on May 14, 2021, have approved buyback proposal for purchase of fully paid equity shares of Re. 1 each ("Equity Share") by the Company at a price of Rs. 120/- (Rupees One Hundred and Twenty Only) per Equity Share payable in cash ("Buyback Price"), for an aggregate amount of Rs. 200 Crore (Rupees Two Hundred Crore Only) ("Buyback Size") (excluding expenses incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, advisor's fees, public announcement publication expenses, printing, dispatch expenses, transaction costs viz. brokerage, applicable taxes such as buyback taxes, securities transaction tax, goods and service tax, stamp duty, etc.), representing 6.36% of the total paid-up equity share capital and free reserves (including securities premium) as per the latest audited standalone financial statements of the Company as on March 31, 2021 (hereinafter referred to as the Buyback) from the shareholders of the Company on a proportionate basis through the tender offer route in accordance and consonance with the provisions contained in the Companies Act, 2013 and the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018 ("Buyback Regulation") (including any statutory modification(s) or re-enactment of the Companies Act, 2013 or Buyback Regulation). The public announcement setting out the process, timelines and other statutory details will be released in due course in accordance with the Buyback Regulation. The Board has formed a Buyback Committee (the "Buyback Committee") and has 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.

The Promoters and Promoter Group of the Company have expressed their intention to only tender up to a maximum of 8,170,000 Equity Shares (amounting to 0.81% of the equity share capital of the Company) out of the 703,333,463 Equity Shares held by them (amounting to 70.00% of the equity share capital of the Company).

The Company has fixed May 26, 2021 as the record date for the purpose of ascertaining the eligibility of shareholders for Buyback of equity shares.

Shares of WELSPUN INDIA LTD. was last trading in BSE at Rs.91.2 as compared to the previous close of Rs. 93.65. The total number of shares traded during the day was 287160 in over 3681 trades.

The stock hit an intraday high of Rs. 95.9 and intraday low of 88.7. The net turnover during the day was Rs. 26502274.

Source : Equity Bulls

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