KPR Mill shares dip over 2.5 pc on withdrawal of buyback proposal

Shares of KPR Mill fell over 2.5 per cent Friday after the company withdrew the buyback proposal of more than 37.50 lakh equity shares, citing the increase in buyback obligation due to the tax proposal in Finance Bill 2019.

In April, the company had informed the stock exchanges that its board has approved the buyback proposal of 37,50,784 equity shares, representing 5.17 per cent shares for an aggregate amount of over Rs 263.30 crore.

On the BSE, the scrip declined 2.29 per cent to settle at Rs 594.05. Intra-day, it tanked 6.24 per cent to Rs 570.05.

On the NSE, shares fell 2.64 per cent to close at Rs 593. Intra-day, it slumped 6.20 per cent to Rs 571.30.

In terms of volume, a total of over 2.94 lakh shares were traded on stock exchanges.

"We have 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 regulatory filing Thursday.

The company was unable to file the 'letter of offer' and go forward with the proposal which had been intimidated to Sebi, it said.