JK Paper Ltd board approves buyback upto Rs. 130 through open market purchase

The Board of Directors of JK Paper Ltd at its meeting held today,i.e., on 28th April 2020, has approved the buyback by the Company of its fully paid-up equity shares having face value of Rs.10/- (Rupees Ten) each (“Equity Shares”) at a price not exceeding Rs. 130/- per Equity Share (“Maximum Buyback Price”) and for an aggregate amount not exceeding Rs. 100 crore (“Maximum Buyback Size”), from the shareholders of the Company excluding promoter, promoter group and persons who are in control of the Company, payable in cash via the “open market” route through the stock exchange mechanism under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (“Buyback Regulations”), as amended and the Companies Act, 2013, as amended (“Companies Act”), and other applicable rules (the process hereinafter referred to as the “Buyback”). 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, based on the audited standalone and consolidated financial statements of the Company and of the total paid up equity share capital of the Company for the period ended March 31, 2019, which is within the maximum amount allowed under the Board approval route under the Companies Act and the Buyback Regulations, and unless otherwise permitted under applicable law, the Company shall utilize at least 50% of the Maximum Buyback Size.

At the Maximum Buyback Price and for the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 76,92,308 (“Maximum Buyback Shares”) which is 4.32% of the total number of paid-up Equity Shares of the Company as on March 31, 2019. If the Equity Shares are bought back at a price below Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the indicative Maximum Buyback Shares (assuming full deployment of Maximum Buyback Size) but will always be subject to the Maximum Buyback Size. Further, the number of Equity Shares to be bought back will not exceed 25% of the total paid up Equity Share capital of the Company. The Maximum Buyback Size shall not include any expenses incurred or to be incurred for the Buyback like filing fees payable to Securities and Exchange Board of India, advisors’ fees, stock exchange fees, brokerage, applicable taxes including securities transaction tax, goods and services tax, stamp duty, etc., public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses.

Shares of JK PAPER LTD. was last trading in BSE at Rs.106.4 as compared to the previous close of Rs. 102.5. The total number of shares traded during the day was 587335 in over 8573 trades.

The stock hit an intraday high of Rs. 108.8 and intraday low of 101.1. The net turnover during the day was Rs. 61976710.