Share price of JK Paper rose 14% intraday after the company said its board will consider share buyback.
April 30, 2020
In a meeting held on April 28, 2020, The Board of JK Paper Limited has approved buyback of shares of the company at a price not exceeding INR 130 per share for an aggregate amount not exceeding INR 100 crore from the shareholders excluding promoter, promoter group and persons who are in control of the company. It will be payable in cash via the “open market” route through the stock exchange mechanism under the Securities and Exchange Board of India.
According to the media reports, the Buyback shall not exceed the Maximum Buyback Size, which represents 5.67% and 5.71% of the aggregate of the total paidup Equity Share capital and free reserves (including Securities Premium Account) of the Company.
At the maximum price and size, the company will be able to buyback 76.92 lakh equity shared i.e. 4.32% stake in the paid up equity share capital as on 31 March 2019.