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Ravi Ranjan Prasad

Mumbai, Aug. 26 Sasken Communication Technologies has filed an appeal with Securities Appellate Tribunal (SAT) against SEBI’s directions relating to company’s buy-back of shares.

The company had requested an early closure for its buy-back scheme, which was supposed to commence on May 5; in addition, the company wanted the option to close the scheme as soon as it acquired shares worth Rs 10 crore (the offer itself was for a maximum of Rs 40 crore worth of shares).

SEBI allowed the company to close the buy-back at any time within the validity period, provided the amount offered to be utilised for buy-back of Rs 40 crore has been fully exhausted or the disclosed percentage of equity shares has been bought back.

An August 18 communication from the regulator directed the company to proceed with the buy-back, and not later than 7 days from the date of the communication. Sasken’s appeal to SAT, which was filed on Monday, will come up for hearing on Friday.

Sasken filed an appeal before SAT, so that it is permitted to proceed with the buy back scheme with the same conditions as set out in its public notice dated April 18, the Bangalore-based firm said in a filing to the BSE.

The company made a public announcement on April 18 for a buy-back of the company’s equity shares worth Rs 40 crore and filed the papers with SEBI on April 22, but it wanted the flexibility to stop the buy-back earlier, once it had bought shares worth Rs 10 crore, keeping in mind business practicalities and dynamics.

Sasken shares closed 1.47 per cent lower at Rs 150.85 on the BSE. The shares price of Sasken remained stagnant and moved just 2.30 per cent lower in the past one month compared with the spike in the first week of April just before the buy-back offer announcement. The buy back price cap was fixed at Rs 260 a share.

Between April 1 and April 22, Sasken shares moved up from a price of Rs 104 to Rs 217.80 on the BSE on buy-back expectations.

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