Budget impact: KPR Mill withdraws share buyback proposal, stock dips 6%

The company said it is not permitted to meet the buyback obligations beyond the amount approved by the board of directors and the same can also be effected only with the borrowed funds.

Shares of KPR Mill dipped up to 6 per cent to Rs 570 in early morning deals on the BSE on Friday after the textile company withdrew buyback proposal due to the tax proposed on buyback obligations in the Finance Bill 2019.

The company had proposed (on April 18, 2019) and approved (on April 30, 2019) buyback of 3.75 million equity shares, representing 5.17 per cent of the total share capital, at a price of Rs 702 per share for a consideration not exceeding Rs 263.31 crore.

Subsequently, between April 18 and June 17, the stock of KPR Mill outperformed