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Reiter sells its stake in LMW under share buy-back scheme
Mar '11
Enam Securities Pvt Ltd on behalf of Lakshmi Machine Works Ltd has issued this Post Buy Back Public Announcement to the Equity Shareholders / Beneficial Owners of the equity shares of the Target Company, which is in continuation of & should be read in conjunction with the Public Announcement ("PA") dated December 24, 2010 issued on December 27, 2010 & Letter of Offer dated January 31, 2011 ("LOF") regarding completion of Buy Back Offer is in compliance with Regulations 19(7) of the Securities & Exchange Board of India (Buyback of Securities) Regulations, 1998, as amended (Regulations").

A. The Buy back:

The Equity Shareholders in connection with the buyback of up to 11,08,606 fully paid up Equity Shares of Rs. 10 each by the Target Company through a tender offer method at a price of Rs. 2045 per Equity Share for an aggregate amount of Rs. 22671 lacs ("Buy Back Size") in accordance with Section 77A, 77AA & 77B of the Companies Act, 1956 & the Regulations. The number of Shares bought back constitute approximately 9.79% of equity share capital of the Company post Buyback.

The Buy back was effected through the tender offer method.

The Buy back offer was open from February 09, 2011 to February 24, 2011.

B. Details of the Buy back:

The total number of Equity Shares bought back under the Buy Back is 11,02,746 Equity Shares.

The total amount invested in the Buyback is Rs 22551.16 lacs.

The Company has bought back a total of 11,02,746 Equity Shares at a price of Rs. 2045 per Equity Share. The Registrar to the Offer i. e. S.K.D.C. Consultants Ltd, received 35 valid applications for 11,02,746 Equity Shares in response to the Buy Back Offer resulting in the subscription of approximately 99.47%. All the valid applications were considered for acceptance.

Communication for acceptance and consideration has been dispatched by way of demand drafts to the successful applicants on March 08, 2011, Consideration has been effected through electronic fund transfer by way of RTGS and or NEFT as the case may be, to the successful applicants whose Equity Shares have been, accepted in the Buyback by March 07, 2011. Communication for rejection of invalid applications has been sent to respective applicants by March 07, 2011 and shareholders holding shares in demat form, demat instructions for re credit into applicants demat account has been given on March 07, 2011. In case of Shareholders holding shares in physical form, share certificates were dispatched to respective applicants on March 07, 2011 where certificates had to be split.

The extinguishment of 11,02,746 Equity Shares (11,01,391 in demat mode and 1355 in physical mode) of Rs. 10/- each accepted from the shareholders has been completed on March 08, 2011 and March 09, 2011 for physical shares and demat shares respectively.

Details of shareholders from whom Equity Shares exceeding 1% of the total Equity Shares bought back are as under:

Name: Rieter Machine works Ltd
Equity Shares accepted as a % of total Equity Shares bought back: 99.75%

C. Capital Structure:

The Capital Structure of the Company, pre & post Buy back is as under: (Rs in lacs)

An extension of Rieter's presence in India was made in 1992 with the formation of RLM, Rieter Lakshmi Machinery, at Coimbatore – a joint venture promoted by LMW and Rieter, Switzerland – as a 100% export oriented unit to manufacture ring frame assemblies.

Lakshmi Machine Works Ltd

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