Letter of offer for buy-back of equity shares to the equity shareholders of Kanara Consumer products Ltd.

Author

Financial Analyst Intern

Publish Date5 June 2024

Reading time2 Min

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Kanara Consumer Products Ltd. is proposing a share buy-back program. It intend to repurchase up to 23,69,230 of equity shares, currently held by existing shareholders, at a price of ₹1300 per share. This buy-back represents 25% of the company's total equity share capital and free reserves of the company. Existing shareholders will receive a formal letter outlining this offer.
The company will share the letter of offer to eligible shareholders based on the record date set on Tuesday, June 21, 2024.
Shareholders approved a special resolution allowing the company to conduct a buy-back program. This approval was voted on electronically through a postal ballot system and is valid for one year, with some flexibility for adjustments to specific dates if needed:-

Offer Opens	5 June 2024
Offer Closes	19 June 2024
Finalize acceptation	Within 2 working days from the closing date
Dispatch of payment	Within 7 days of acceptance
Extinguishment of equity shares	Within 7 days of payment

While the company is offering a buy-back program, most of the company's founders (promoters) and controlling shareholders won't be selling their shares. There are exceptions, however, as Mr. Sudhakar Pai, Mrs. Jaya S Pai, and Mrs. Jyothi Ashish Pradhan will be participating in the buy-back.