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ACGL Buyback Review, Record Dates, Offer Details, Price, Dates, Size & more

In this article, we will discuss about Automobile Corporation of Goa Buyback offer, buyback price, buyback size, Automobile Corporation of Goa Ltd Buyback record date, company financial, ACGL buyback necessity and its impact on company.

Automobile Corporation of Goa Ltd Buyback Details

Buyback TypeTender Offer
Opening Date[●]
Closing Date[●]
Buyback Offer AmountRs. 19,98,00,000/-/-
Buyback No. of Shares3,33,000
Face ValueRs. 10
Date of Buyback ApprovalJuly 24, 2019
Date of Public AnnouncementSeptember 06, 2019
Buy Back PriceRs. 600/-
Buy Back Premium22.16%
Date of Board MeetingWednesday, July 24 2019

Automobile Corporation of Goa Buyback Opening and Closing Date

The starting and closing date of this buyback is NA.

Automobile Corporation of Goa Buyback Cash Offer

The Cash Offer to Buy-back up to 19,98,00,000/- fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 5.19% of the total number of equity shares.

Automobile Corporation of Goa Buyback Record Date

The decided record date is Friday, September 20, 2019

Automobile Corporation of Goa Buyback Price

At a price of Rs.600/- per Equity Share.

Automobile Corporation of Goa Buyback Size

At a buyback price of Rs.600/- payable in cash for an aggregate consideration not exceeding Rs.19,98,00,000/-

Automobile Corporation of Goa Buyback Acceptance Query

You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.


Automobile Corporation of Goa Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200600120000136002.56%
40%400600240000272005.11%
60%600600360000408007.67%
80%8006004800005440010.23%
100%10006006000006800012.78%

Profit is calculated from 18 Sept 2019 share price i.e. Rs.532 per share of Automobile Corporation of Goa.

According to the above table, if a shareowner applies for 1000 shares of Automobile Corporation of Goa & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.600 per share & receive Rs.13600 as profit amount & 2.56 % profit percentage on selling these 200 shares back to the company.

Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.600 & receive a profit of Rs.40800 @ 5.11 % profit percentage.


Automobile Corporation of Goa Buyback Overview

Automobile Corporation of Goa Limited (“ACGL” / the “Company”) was incorporated on September 1, 1980 as a public limited Company under the Companies Act 1956. The registered office of the Company is situated at Honda, Sattari, Goa, 403530.

The Equity Shares of the Company are listed on the BSE since August 2, 1982. The Company has been jointly promoted by the EDC Limited (EDC) and Tata Motors Limited.

ACGL is engaged in the manufacture of pressed parts, components, sub-assemblies for various range of automobiles and manufacture of bus bodies and component parts thereof. Company operates through two segments: Pressing Division and Bus body Building Division. The Pressing Division segment is engaged in the manufacture of pressed parts, components, sub-assemblies and assemblies.

Company had started, in the year 1980 as a manufacturer of pressed sheet metal components and thereafter diversified into the business of manufacturing bus bodies in the year 1989 and 34 buses were produced during the financial year 1989-90. The Company since then has come a long way and has manufactured and sold 5775 bus bodies during the financial year 2018-19.


Company Finances – Automobile Corporation of Goa

The salient financial information of the Company as extracted from the audited financial statements for the last three years being March 31, 2019, March 31, 2018 and March 31, 2017 are as under:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
201920182017
Total Income43,617.5650,806.5750,838.91
Total Expenses (excluding finance cost, depreciation & amortization)39,484.4047,106.1447,008.70
Interest14.4138.5424.96
Depreciation and amortization expenses528.61531.61561.60
Profit before tax3,061.203,356.983,240.98
Provision for tax
(including Deferred Tax)
1,047.521,289.292,096.16
Profit /(Loss) after tax2,013.682,067.698,16,168
Equity Share Capital642.16642.16642.16
Other Equity19,472.2418,813.3818,098.26
Networth20,114.4019,455.5418,740.42
Total Debt (Excluding working capital loans)2,2007,2421,14,626

Automobile Corporation of Goa Buyback Dates

Date of Board Meeting approving the BuybackWednesday, July 24 2019
Date of publication of Public Announcement for BuybackWednesday, September 11, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersFriday, September 20, 2019
Buyback Opening date
Buyback Closing date
Last Date of verification of Tender Forms by the Registrar
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar
*Last date of Settlement of Bids on the BSE Limited
Last date of return of unaccepted Equity Shares by BSE Limited
Last date of Extinguishment of Equity Shares

Details of Public Announcement

In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated September 9, 2019, for the Buyback of Equity Shares published on  September 11, 2019 in the following newspapers:

PublicationLanguageEdition
Business StandardEnglishAll editions
Business StandardHindiAll editions
Goa DootMarathiGoa

Necessity of Automobile Corporation of Goa Buyback

The Buyback is being undertaken for the following reasons:

  • This BuyBack will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
  • The Buy-Back, which is being implemented through the tender offer route as prescribed under the Buy-Back Regulations, would involve allocation of number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders.
  • Buy-Back may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value.
  • ACGL Buy-Back will help in achieving an optimal capital structure. The Buy-Back gives an option to the shareholders 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 not to participate and enjoy a resultant increase in their percentage shareholding, post the Buy-Back Offer, without additional investment.

Impact of ACGL Buyback on the Company

The management believes that the Buy-Back is not likely to cause any material impact on the profitability or earnings of the Company, except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income. In the event that there is 100% Acceptance of the Equity Shares tendered in the Buy-Back from Eligible Shareholders on a proportionate basis, the funds deployed by the Company towards the Buy-Back would not exceed ` 19,98,00,000/-

The Buy-Back is not expected to have any impact on growth opportunities for the Company but is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company.

Assuming response to the Buy-Back is to the extent of 100% (full Acceptance) from all the Equity Shareholders upto their Buy-Back Entitlement, the aggregate shareholding of the Promoters and Promoter Group in the Company post Buy-Back may increase from the existing holding of 53.50% to 56.43% and the aggregate shareholding of the public may decrease from 46.50% to 43.57% of the post Buy-Back equity share capital of the Company.

In terms of the Buy-Back Regulations, under the Tender Offer route, the Promoter and Promoter Group of the Company have the option to participate in the Buy-Back. In this regard, the Promoter and Promoter Group of the Company have expressed their intention vide their letters dated July 24, 2019 to not participate in the Buy-Back.

Parameters (based on audited standalone financial statements for year ended March 31, 2018)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in crores)201.14181.16
Return on Net worth (%)10.01%11.12%
Earnings Per Share (Rs)31.3633.07
Book Value per Share (Rs)313.23297.55
P/E as per the latest audited standalone financial statements17.8616.93
Total Debt / Equity Ratio

Basis of Calculating Automobile Corporation of Goa Buyback Price

The Buyback Price has been arrived at after considering various factors such as

  • the share price benchmarks on the NSE, the stock exchange where the maximum volume of trading in the Equity Shares is recorded,
  • the net worth of the Company, and
  • the impact on the earnings per Equity Share.

More on Automobile Corporation of Goa Buyback Price Calculation

The Buyback Price represents a premium of 22.16% over the volume weighted average market price of the Equity Shares on the NSE for the 60 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback and 24.15% over the volume weighted average market price of the Equity Shares on the NSE for the 10 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback.

The closing market price of the Equity Shares as on the date of intimation of the Board Meeting for considering the Buyback, being April 10, 2019, was Rs. 281.00 (Rupees Two Hundred and Eighty One only) on both NSE and BSE.


Source of Funds for the Buyback

The Buy-Back price is Rs. 600/- (Rupees Six Hundred only) per equity share.

The Buy-Back Offer Price has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average market prices of the Equity Shares on BSE, i.e., the stock exchange where the Equity Shares are listed, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buy-Back on the earnings per Equity Share.

The equity shares are being offered for Buy-Back at a premium of –

• 16.20% over the volume weighted average market price of the Equity Shares on BSE, during the three months preceding July 19, 2019, being the date of intimation to BSE for the Board Meeting to consider the proposal of the Buy-Back (“Intimation Date”)

• 26.03 % over the volume weighted average market price of the Equity Shares on BSE for two weeks preceding the Intimation Date

• 34.95% over the closing price of the Equity Shares on BSE as on the Intimation Date


Automobile Corporation of Goa – Manager to the Buyback

KEYNOTE FINANCIAL SERVICES LIMITED
(Formerly Keynote Corporate Services Limited)
The Ruby, 9th Floor, Senapati Bapat Marg,
Dadar (West), Mumbai – 400 028
Tel: +91–22– 6826 6000-3; Fax: +91–22– 6826 6088
E-mail: [email protected]
Website: www.keynoteindia.net
Contact Person: Ms. Pooja Sanghvi
SEBI Registration No.: INM 000003606
Validity Period: Permanent Registration
CIN: L67120MH1993PLC072407

Automobile Corporation of Goa – Registrar to the Buyback

TSR DARASHAWCONSULTANTS PRIVATE LIMITED
6-10 Haji Moosa Patrawala Industrial Estate,
20 Dr. E Moses Road, Near Famous Studio, Mahalaxmi
(West), Mumbai – 400 011
Tel: +91–22–6656 8484; Fax: +91–22–6656 8494
E-mail: [email protected]
Website: www.tsrdarashaw.com
Contact Person: Ms. Mary George
SEBI Registration No.: INR 000004009
Validity Period: Permanent Registration
CIN: U74999MH2018PTC307859

Automobile Corporation of Goa Contact Details

Company Contact Details
AUTOMOBILE CORPORATION OF GOA LIMITED
Registered Office and Correspondence Address: Honda, Sattari, Goa – 403 530
Tele. No. 0832-2383018/ 2383014
Email: [email protected]; Website: www.acglgoa.com
Corporate Identification Number (CIN): L35911GA1980PLC000400
Contact Person: Ms. Manisha Naik Shirgaonkar, Company Secretary & Compliance Officer

 


Automobile Corporation of Goa Buyback News

News 1 – Buyback PDF / Letter of Offer [Download]

News 2 – Automobile Corporation of Goa Ltd – Public Announcement


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