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VR Logistics earmarks Rs 41.4 cr to buy-back 7.65% of co shares at Rs 460 apiece

Surface transportation and logistics company, VRL Logistics Ltd(VLL) has set aside Rs 41.4 crore towards  7.65% or 9 lakh shares buy-back proposal at  Rs 460 per share, says a release on 7th Nov. The company would implement the buy-back through the methodology of “open market purchases through stock exchanges”, as provided in the buy-back regulations.  The buy-back will be rolled out in the manner and following the procedure prescribed in the companies act and the buyback regulation and as may be determined by the board of directors and on such terms and conditions, as may be permitted by law from time to time.

Buy-back rationale

The buy-back will help the company achieve the following objectives including optimizing returns to shareholders, enhance overall shareholders value and optimize the capital structure.  The above objectives will be achieved through the buy-back and may lead to reduction in outstanding shares, improvement in earnings per share and enhanced return on invested capital. The buy-back will not in any manner impair the ability of the company to pursue growth opportunities or meet its cash requirements for business operations. 

The aggregate maximum amount of the buy-back i.e. Rs 41.4 crore  does not exceed 25% of the total paid-up equity share capital and free reserves as per the audited balance sheet as on 31st March 2017. The company shall utilize at least 50% of the amount earmarked as the maximum buy-back size for the buy-back i.e. Rs 20.7 crore. Based on the minimum buy-back size and the maximum buy-back price, the company shall purchase a minimum of 4.5  lakh equity shares in the buy-back. The VRL shall not make any offer of buy back within a period of one year reckoned from the date of closure of the buy-back. There is no pendency of any scheme of amalgamation or compromise or arrangement pursuant to the provisions of the companies act as on date. VRL further states that it shall not directly or indirectly purchase its own equity shares through any investment company or group of investment companies.

Dr. Vijay Sankeshwar, Chairman and Managing Director, Mr. Anand Sankeshwar, Managing Director and Mr. Aniruddha Phadnavis, Company Secretary and compliance officer be and are hereby severally authorised to file necessary e-forms with the Registrar of companies, Bengaluru, Karnataka (“Registrar of Companies”) and to do all such acts, deeds and things as may be necessary to give effect to the above resolutions.

 


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