Home / Markets / Stock Markets /  Digital company declares buyback of shares at 30% premium. 5 key details here

Buyback of shares 2023: The board of directors of Teamlease Services Ltd — a diversified digital commercial company has approved buyback of shares subject to approval of the shareholders. The company informed Indian bourses in this regard and said that Teamlease share buyback price has been fixed at 3,050 per equity share. The buyback would take place via tender route. Teamlease share price today is around 2,350 apiece, which means the company has offered buyback of shares at a whopping 30 per cent discount.

Informing Indian bourses about share Buyback, Teamlease Services Ltd said, "we wish to inform that the Board of Directors of Teamlease Services Limited at its meeting held today, i.e., February 03, 2023 has, , inter-alia, considered and approved, subject to the approval of shareholders, the proposal for buyback of fully paid up equity shares of the Company having a face value of 10/- not exceeding 3,27,869 Equity Shares (representing 1.92% of the total paid-up capital of the Company as on March 31, 2022) (which is less than 25% of the aggregate of the total paid-up share capital and free reserves of the Company, based on the latest audited financial statements of the Company as at March 31, 2022 (on a standalone and consolidated basis)(“Equity Shares" and such buyback “Buyback") from all shareholders/ beneficial owners of the Equity Shares of the Company, as on record date, which will be decided subsequently, on a proportionate basis, through the “tender offer" route, using mechanism for acquisition of shares through Stock Exchange(s) as prescribed under Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the “Buyback Regulations") and such other circulars or notifications issued by the Securities and Exchange Board of India and pursuant to the Companies Act, 2013 and rules made thereunder, as amended from time to time (the “Act"), at a price of 3050 (Three thousand fifty only) per Equity Share (“Buyback Offer Price"), payable in cash, for an aggregate amount not exceeding [100 crores] (Indian Rupees One Hundred crores]), excluding tax payable under Income Tax Act, 1961 and any expenses incurred or to be incurred for the Buyback viz. brokerage costs, fees, turnover charges, taxes such as tax on Buyback, securities transaction tax and goods and services tax (if any), stamp duty, filing fees to SEBI, Stock Exchange(s) charges, advisors/legal fees, printing and dispatch expenses, if any, public announcement publication expenses and other incidental and related expenses and charges (“Transaction Costs") which represents 14.79% and 14.50% of the aggregate of the Company’s paid-up capital and free reserves as per the standalone and consolidated audited financials of the Company for the year ended as on March 31, 2022 respectively."

Here we list out 5 key details that you should know before tendering your stock:

1] Teamlease share buyback price: The company board has declared share buyback price at 3,050 per equity share.

2] Buyback discount: Teamlease share price today is around 2,350 apiece, which means the buyback has been announced at whopping 30 per cent above the current market price of the stock.

3] Teamlease share buyback process: Buyback has been announced through 'tender route.'

4] Teamlease share buyback acceptance ratio: A large number of application is expected in this offer and hence acceptance ratio is expected to remain on higher side.

5] Buyback size: .his buyback of shares would represent 1.92 per cent of the total paid-up capital of the Company as on March 31, 2022.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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