Wednesday, November 20, 2019
News

KPR Mills withdraws share buyback proposal after tax, scrips end 2% down (Lead)

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai | Friday, 2019 10:45:05 PM IST
Garment exporter KPR Mills on Friday became the first company to have withdrawn its buyback proposal due to the 20 per cent tax proposed in the Finance Bill 2019.

As a result, its scrips fell as much as 6.24 per cent before closing 2.29 per cent lower at Rs 594.05 a piece. The company had proposed a buyback offer of up to 37.50 lakh equity shares.

The buyback route allowed companies to avoid dividend distribution tax (DDT) until recently. But with buybacks by listed entities now being taxed at 20 per cent, the exercise has lost is advantage.

"We hereby inform you that we have today (Friday) filed with SEBI our communication conveying that the increase in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019 was neither contemplated nor prevailing at the time of the consideration and the approvals of the Board and Shareholders," the company said in a BSE filing.

"We are not permitted to meet the buyback obligations beyond the amount approved by the Board of Directors and Shareholders of the Company and the same can also be effected only with the borrowed funds, which is prohibited by law. In the above circumstance, we are unable to file the 'Letter of Offer ' and go forward with the proposal, which has been intimated to SEBI," KPR Mills added.

--IANS ravi/sn/kr

( 244 Words)

2019-07-12-16:56:06 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Jaypee Infra: NBCC offers Rs 62 cr for h...
Maruti Suzuki calls startups for third c...
Moody's assigns Baa1 to ONGC's proposed ...
Vodafone in battle with IT Dept...
ICRA downgrades Karvy Broking to non-coo...
RBI affidavit details how it was 'cheate...
More...
 
INDIA WORLD ASIA
CM Sawant hopes Javadekar will give deci...
29 districts in Maharashtra, 39 in MP af...
Maharashtra: Muslims in Ahmednagar appea...
Youth Congress protest removal of SPG co...
Delhi HC dismisses plea seeking fixing m...
MHA: Section prescribing compulsory regi...
More...    
 
 Top Stories
Saroj Khan to help dancers' girl ch... 
New IBM open technology to secure f... 
Plastic not problem, it's reckless ... 
Kohli named PETA India's 2019 Perso... 
Hong Kong court extradites Punjab f... 
Korea Masters: Kidambi, Sameer adva... 
When Diljit asked Gal Gadot for 'go... 
Jharkhand polls: Rebel Saryu Rai be...