Mangalam Cement up on buy-back approval, India

Mangalam Cement up on buy-back approval, India
Published: 20 January 2009

Mangalam Cement rose 5.07 per cent to Rs 52.80 on Monday as the board approved a buy-back at a maximum price of Rs 75 per share. The stock has gained nearly 15 per cent in the last one month when the benchmark Sensex lost close to 8 per cent.

At a board meet held on Jan 17, the board approved buy-back of shares amounting to Rs 21.50 crore, constituting 9.94 per cent of the paid-up capital and free reserves as on March 31, 2008.

The buy-back is subject to a minimum of 7.25 lakh shares at a price not exceeding Rs 75 per share. The maximum limit has been pegged at 44 lakh equity shares which is within permissible limit of 25 per cent of the paid-up equity.

The company has appointed VC Corporate Advisors as the merchant bankers for the proposed buy-back.

In another announcement, Mangalam Cement has informed the exchange that it has discharged the liability of deferred sales tax loan of Rs 31.75 crore, which was repayable during the period July 2013 to April 2015, by paying Rs 18.44 crore, calculating the net present value by considering discounting factor of 10.75 per cent as per the scheme of Rajasthan government. The company has written to the Rajasthan government for issue of Discharge Certificate.