K.P.R. Mill Limited announces an Equity Buyback for 3,750,784 shares, representing 5.17% for INR 2,633.05 million.
April 30, 2019 at 06:39 am
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K.P.R. Mill Limited (BSE:532889) announces a share repurchase program. Under the program, the company will repurchase up to 3,750,784 shares, representing 5.17% of its issued share capital for INR 2,633.05 million. The shares will be repurchased at a price of INR 702 per share. The purpose of the offer is to return surplus cash to the shareholders thereby enhancing overall return to them, to reduce the number of equity shares, to improve return on equity thereby leading to long term increase in shareholder’s value, to optimize the capital structure, to provide an option to the shareholders to either participate in the buyback and get cash in lieu of their share or not participate in the buyback and enjoy a resultant increase in their percentage shareholding without additional investment. The offer will be funded out of the company’s free reserves and/or share premium account and/or surplus and/or cash balances and/or internal accruals and/or internally generated cash resources and/or other sources as permitted by the law. The plan is subject to approval of the shareholders through postal ballot. The company fixed June 19, 2019, as record rate for the offer. The program will expire on November 11, 2019. As on April 26, 2019, the company had 72,560,784 shares in issue.
K.P.R. Mill Limited is an India-based textile company. The Company is engaged in the business of yarn, fabrics, garments, green power, sugar and ethanol. The Company's segments include textile, sugar and others. It produces yarns in a comprehensive range and varieties like compact yarn, combed yarn, carded yarn, melange yarn, polyester cotton, viscose yarn, grindel yarn and red label yarn. Its fabric products include the entire range of single jersey (also with lycra/spandex), interlock, rib, two and three thread fleece, pique polo, flat bed collar are key products. The Company provides a range of inner wear and athleisure wear for the Indian market under the brand name FASO. It provides men's wear and women's wear. It provides various garment types, such as casual wear, sportswear, active wear, sleep wear and work wear. It has a capacity to produce approximately 1,00,000 metric tons (MT) of cotton yarn; 4,000 MT Viscose vortex yarn per annum; 40,000 MT fabrics per annum, and others.