In Friday’s trade, shares of KPR Mill dropped 6 per cent after the company withdrew its schemed Rs 263.31 crores share buyback plan citing newly imposed tax obligations on such offerings.
“We have today (Thursday) filed with SEBI our communication conveying that the increase in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019 was neither contemplated nor prevailing at the time of the consideration and the approvals of the board and shareholders,” the company told exchanges.
Further, the company added that it found difficulty in meeting the obligations ahead of the amount permitted by the board of directors and shareholders. With doing this, KPR became the first company to withdraw its offer following the overture of 20 per cent buyback tax.
Following the development, the scrip fell 6.24 per cent to hit a low of Rs 570.05 on BSE.