Jagran Prakashan Limited Buyback Important Dates
|Board Meeting for Jagran Prakashan Limited Buyback proposal
|Jagran Prakashan Limited Buyback Approval date
|Public Announcement of Buyback
|Buyback Start Date ( Commencement Date )
|Last date for the completion of the Buy-back
Necessity of Buyback by Jagran Prakashan Limited
Buy-back is the acquisition by a company of its own shares. Buy-back is an efficient form of returning surplus cash to the members holding equity shares of the Company, inter-alia, for the following reasons:
i. The Buy-back will help the Company to return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members;
ii. The Buy-back, which is being implemented through the Tender Offer route as prescribed under the Buy-back Regulations, would involve allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation of 15% for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder;
iii. The Buy-back would help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value; and
iv. The Buy-back gives an option to the members holding equity shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buy-back offer or they may choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buy-back offer, without additional investment.
About Jagran Prakashan Limited
Jagran Prakashan Limited was incorporated on 18 July 1975 under the Companies Act as “Jagran Prakashan Private Limited” and, subsequently, became a deemed public limited company under Section 43A of the Companies Act. In 2000, upon amendment of Section 43A of the Companies Act, The Company chose to keep its status as a public limited company pursuant to shareholders resolution passed on 31 August 2000. In 2004, The Company was again converted into a private limited company as per the stipulations under the Original Shareholders Agreement and pursuant to shareholders resolution passed on 28 September 2004. Further, on 23 November 2005. The Company was converted into a public limited company in the light of the Issue pursuant to a shareholders resolution passed on 18 November 2005.