Textile firm KPR Mill has become post-Budget, the first company to cancel its buyback in response to new rules imposing a 20% buyback tax. The company noted that the increase in the amount of Buyback obligation due to the tax proposal "was neither contemplated nor prevailing at the time" when the Board and shareholders had approved the buyback offer. 

The company had announced the Rs 263.3 buyback offer in April 2019, for 5.17% of total shares at a price of Rs 702 per share. Buybacks had become a popular means for companies to avoid paying a dividend distribution tax.