Route Mobile buyback: Route Mobile board approves Rs 120 crore buyback

In a filing on the Bombay Stock Exchange, the company informed that its board had approved Rs 120 crore spending to buyback share from shareholders barring promoter, promoter group, and persons in control of the company.

The board approved the buyback by the “Company of its fully paid-up equity shares having face value of INR 10/- (Indian Rupees Ten only) each (“Equity Shares”) at a price not exceeding INR 1,700”.

At maximum buyback price (Rs 1,700), and maximum buyback size (Rs 120 crore), the indicative maximum number of equity shares bought back would be 705,882, 1.12% of the total number of paid-up equity shares of the company.

“The Buyback shall not exceed the Maximum Buyback Size, which represents 9.95% and 7.31% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022, respectively,” Route Mobile said in the filing.

Route Mobile stock fell 2.62% on Tuesday to end the day’s trading at Rs 1328.70.

It added that the company would utilise at least 50% of the Maximum Buyback Size of Rs 60 crore (Minimum Buyback Size) towards the buyback and accordingly will purchase an indicative minimum number of 352,942 equity shares.

The board also approved the formation of a buyback committee and delegated its powers to do “all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the Buyback”.

Additionally, the board approved the appointment of Rathindra Das, group head legal, company secretary and compliance officer for the buyback.