The board of directors of Kanchi Karpooram has approved the buyback of up to 2.20 lakh shares of the company, constituting 5.17 per cent of its fully paid-up equity share capital, at ₹405 a share. The buyback, which works out to be worth ₹8.91 crore, will be through the tender offer route on proportionate basis from the shareholders as on the record date.
The record date for identifying the eligible shareholders for the buyback has been fixed as December 4, 2020.
The board noted that none of the promoters are participating in the proposed buyback offer.
The board has constituted a buyback committee and appointed Saffron Capital Advisors Private Limited, a SEBI-registered Category I Merchant Banker as ‘Sole Manager’ to the buyback offer.
On Friday, shares of Kanchi Karpooram traded on the BSE at ₹412, down from its previous close of ₹418.