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With a market valuation of 100.73 Cr, Freshtrop Fruits Ltd. is a small-cap business that operates in the FMCG industry. The maximum buyback amount of Rs. 8.00 Cr at a maximum buyback price of Rs. 115 per share has been declared today by the company's board of directors. As of today's closing price, the share buyback price reflects a 22% premium.

The Board of Directors of Freshtrop Fruits has said today in a stock exchange filing that “The Buy-back of the Company's fully paid-up equity shares having a face value of Rs. 10 (Rupee Ten Only) each (the "Equity Shares"), from the members of the Company (except promoters, promoter group and persons in control of the Company) at a price not exceeding Rs.115/- (Rupees One Hundred and Fifteen Only) per Equity Share ("Maximum Buyback Price"), and for an aggregate amount not exceeding Rs.8.00 crores (Rupees Eight Crore only) ("Maximum Buyback Size"), which is less than 10% of the paid-up capital and free reserves of the Company as on March 31, 2022, from the open market through Stock Exchange mechanism, in accordance with the provisions of Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 as amended and the Companies Act, 2013 and the rules made thereunder ("Buyback"). The Maximum Buyback Size does not include transaction costs, namely applicable taxes such as buyback tax, securities transaction tax, goods and service tax, stamp duty, filing fees, advisors' fees, brokerage, public announcement expenses, expenses and other incidental and related expenses ("Transaction Costs"). The Maximum Buyback Size represents 9.89 % of the aggregate of the Company's paid-up equity share capital and free reserves based on the audited financial statements of the Company as at March 31, 2022 (being the latest available audited financial statements of the Company)."

They further added that “At the Maximum Buyback Price and for the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 6,95,652 ("Maximum Buyback Shares") (comprising 6.51 % of the existing paid-up capital). If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the indicative Maximum Buyback Shares but will always be subject to the Maximum Buyback Size. The Company shall utilize at least 50% (fifty percent) of the amount earmarked as the maximum Buyback Size for the Buyback i.e. Rs.4.00 Crores (Rupees Four Crores only) ("Minimum Buyback Size"). Based on the Minimum Buyback Size and the Maximum Buyback Price, the Company will purchase a minimum of 3,47,827 equity shares."

The shares of Freshtrop Fruits Ltd closed today at 94.25 apiece on the BSE, up by 3.69% from the previous close of 90.90. The stock recorded a total volume of 83,873 shares compared to the 20-Day average volume of 18,919 shares. On a YTD basis, the stock has fallen 21.67% so far in 2022. The stock had touched a 52-week-high of 131.00 on (05/01/2022) and a 52-week-low of 70.00 on (10/10/2022).

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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