Shareholder in Times of India publisher seeks buyback at Rs 11,229 per share

By Ashish Pandey

Bharat Nidhi, a significant shareholder in The Times of India’s publisher Bennett, Coleman & Co, has announced a share buyback offer as it delists its shares on the Calcutta Stock Exchange (CSE) and shifts to the dissemination board (DB) of the National Stock Exchange (NSE).

The offer made is in accordance to the Sebi order dated 2012 which provides for an exit route to the shareholders of the company moving from regional to national stock exchange. The company was shifted to the DB of the NSE with effect from February 12, 2019, following the NSE circular dated February 11, 2019, and the CSE notice of February 13, 2019.

Bharat Nidhi is one of the 63 companies which were listed on the CSE and were transferred to the DB.

The board of directors of the firm in its meeting on June 7, 2019, had approved the buyback, subject to nod of shareholders, offering 21,791 shares at an exit price of `11,229 for an aggregate amount of up to Rs 24,46,91,139.

Bharat Nidhi counts BCCL and Bennett Property Holdings among its associates, in which it holds 24.41% stake each. BCCL is the publisher of major national dailies The Times of India and The Economic Times. Other than this, Bharat Nidhi also holds shares in Times Publishing House and Times Internet.

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The Sebi, in May 2012, had offered two options to the companies listed on the de-recognised stock exchanges and recognised stock exchanges seeking voluntary surrender of recognition ? either to offer exit route to the existing shareholders through buyback or get listed on nation-wide stock exchanges such as the BSE and the NSE. The DBs were established with an aim to offer a platform for buyers and sellers to meet each other.

“Since the buyback is more than 10% of the total paid-up equity share capital and the reserves of the company, pursuant to Section 68(2)(b) of the Act, the company is in the process of seeking approval of its shareholders by way of a special resolution through a postal ballot,” the company said. The results of the postal ballot are likely to be declared on or before July 29, 2019, it added. The buyback proposed by the company would be for up to 25% of the total paid-up equity share capital, the company said.