The Board of Directors of Shyam Century Ferrous Limited at its meeting held today, i.e., 11th August, 2022, subject to approval of the shareholders, has unanimously approved a proposal to Buy-back up to 1,00,00,000 (One Crore Only) fully paid-up Equity Shares of Re. 1/- each of the Company (representing 4.50% of the total Equity Capital) from all the Equity shareholders of the Company on a proportionate basis through the "Tender Offer" route using the Stock Exchange Mechanism as prescribed under the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 ("the Buy- back Regulations") as amended, at a price of Rs. 28/- (Rupees twenty-eight only) per share payable in cash for an aggregate consideration not exceeding Rs.28,00,00,000/- (Rupees twenty-eight crores only) (excluding company's transaction cost such as brokerage, buy-back tax, securities transaction tax, GST, stamp duty and other related expenses etc.) (the "buy-back offer Size") in accordance with provisions of the Companies Act, 2013 and the BuyBack Regulations, as amended.
The Buy-back size also does not include any expenses that may be incurred for the purpose of Buyback which includes filing fees, advisory fees, newspaper advertisement, public announcement expenses, printing & dispatch expenses and other incidental and related expenses.
The maximum shares proposed to be bought back represent 4.50% of the total paid up equity shares of the Company and the aggregate consideration for proposed buy-back represents 24.56% of the aggregate of the paid-up equity share capital and free reserves as per the Audited financial statements of the Company for the financial year ended 31st March, 2022. Approval of the shareholders will be sought by way of Postal Ballot through e voting.
The Board noted the intention of the Promoters and Promoter Group of the Company to participate in the proposed Buy-back.
At the said meeting, the Board of Directors has formed a 'Buyback Committee' and has delegated its powers to the Committee to take all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, fit, usual, proper and expedient in this connection.
The Board also appointed M/s. Horizon Management Private Limited as Manager to the Offer and Maheshwari Datamatics Private Limited as Registrar to the Offer.
Shares of Shyam Century Ferrous Limited was last trading in BSE at Rs. 22.50 as compared to the previous close of Rs. 22.40. The total number of shares traded during the day was 191276 in over 1121 trades.
The stock hit an intraday high of Rs. 23.00 and intraday low of 21.25. The net turnover during the day was Rs. 4254973.00.