Jagran board approves Rs 292.5 cr share buyback plan
MUMBAI: Jagran Prakashan board has approved the buyback of 1.5 crore shares at a price of Rs 195 per equity share for an aggregate amount of Rs 292.5 crore. The 1.5 crore shares of face value of Rs 2 each represent 4.82% stake in the company.
The share buyback will be done through free reserves and/or securities premium account or such other sources as may be permitted by law, from the existing shareholders of the company who hold equity shares as of the record date.
The aggregate amount to be expended by the company for the buyback will not exceed 25% of the company’s total paid-up capital and free reserves based on the audited financial statements of the Company as on 31st March 2017.
The company said that the buyback size does not include any expenses incurred or to be incurred for the Buyback like filing fees payable to SEBI and other expenses such as advisors’ fees, public announcement and publication expenses, printing and dispatch expenses and other incidental and related expenses.
The board has also formed a committee for the purpose of the buyback and has delegated its power to the Buyback Committee to finalise the terms of the buyback including the mechanism for the buyback, record date, entitlement ratio, schedule of activities, opening and closing date of the buyback, and time frame for completion of the buyback.