KPR Mill share price closed higher in trade today after the firm said market regulator Securities and Exchange Board of India (Sebi) had approved the buyback of shares by the firm. KPR Mill share price ended 7.44% or 42.25 points higher at Rs 609.80 compared to the previous close of Rs 567.55 on BSE. KPR Mill share rose 7.59% intra day to Rs 610.65 compared to the previous close of Rs 567.55 on BSE.
The stock has gained 9.7% in last 4 sessions. On July 11, 2019, the firm had expressed its inability to implement the buyback proposal due to a rise in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019.
But on September 15, 2019, the government introduced an amendment which said buybacks announced prior to July 5, 2019 were exempted from the tax implication announced in Finance Bill 2019.
Subsequently, the firm sent a letter to Sebi requesting to proceed with the buyback as originally contemplated since it had adequate cash reserves to meet the buyback obligation assuming tax exemption. Sebi has approved the buyback offer as originally contemplated, KPR Mill said.
The firm said schedule and other activities in respect of buyback will be intimated in due course to the shareholders as on record date June 19, 2019.
KPR Mill Limited is one of the largest vertically integrated apparel manufacturing companies in India producing yarn, knitted grey and dyed fabric and readymade garments.