Aditya Vision Buyback Review, Offer Details, Price, Dates, Size & more

In this article, we will discuss about Aditya Vision Company Limited Buyback offer, buyback price, buyback size, Aditya Vision Buyback record date, company financial, buyback necessity and its impact on company.

Aditya Vision Limited Buyback Details

Buyback TypeTender Offer
Opening DateMarch 18, 2020
Closing DateApril 01, 2020
Buyback Offer AmountRs.6,70,00,000
Buyback No. of Shares33,50,000
Face ValueRs.10
Date of Buyback ApprovalDecember 17, 2019
Date of Public AnnouncementFebruary 01, 2020
Buy Back PriceRs.20/-
Buy Back Premium6.25%
Date of Board MeetingDecember 17, 2019

Aditya Vision Buyback Opening and Closing Date

The starting and closing date of this buyback is from March 18, 2020 to April 01, 2020.

Aditya Vision Buyback Cash Offer

Cash Offer to Buy-back up to 33,50,000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 23.74% of the total number of equity shares.

Aditya Vision Buyback Record Date

The decided record date is February 12, 2020.

Aditya Vision Buyback Price

At a price of Rs.20/- per Equity Share.

Aditya Vision Buyback Size

At a buyback price of Rs.20/- payable in cash for an aggregate maximum amount of Rs.6,70,00,000.

Aditya Vision Limited 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.


Aditya Vision Company Limited 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%2002040005603.26%
40%40020800011206.51%
60%600201200016809.77%
80%8002016000224013.02%
100%10002020000280016.28%

Profit is calculated from Mar 20, 2020 share price i.e. Rs.17.20 per share of Aditya Vision Company Limited.

According to the above table, if a shareowner applies for 1000 shares of Aditya Vision Company limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.20 per share & receive Rs.560 as profit amount & 3.26% 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.20 & receive a profit of Rs.1680 @ 9.77% profit percentage.


Aditya Vision Company Limited Buyback Overview

Their Company was originally incorporated as Aditya Vision Private Limited on March 31, 1999 with the Registrar of Companies, Bihar as a private limited company under the provisions of the Companies Act, 1956. The Company is engaged in the retail business of consumer electronics, home appliances, camera, cam-recorders, and mobile phones.

The Company deals in multi-brand, multi-product retail chain which stocks an entire range of consumer durables, right from Air-conditioners, TVs, Washing Machines, Refrigerators, Microwaves, Home Theatre Systems, Mobile Phones, small home appliances and many more of the popular brands such as LG, Samsung, Sony, Daikin, Videocon, Panasonic, Onida, Nikon etc. Presently the Company has 43 outlets/stores across Bihar under the brand name “Aditya Vision”.

The total authorized share capital of the Company is Rs. 1500.00 Lakhs consisting of 1,50,00,000 Equity Shares of Rs. 10/- each. As on date the subscribed, issued and paid up share capital of the Company consisted of 1,41,10,500 Equity Shares of Rs. 10/- each aggregating Rs.1411.05 lakhs.


Company Finances – Aditya Vision Company Limited

The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the quarter ended June 30, 2019 are provided below:

[In Rs. Lakhs]

ParticularsFor the period ended Sept 2019 (Audited)12 Months period ended March 31
(Audited)
201920182017
Total Income45610.4856404.6144458.6936207.03
Total Expenses (excluding Interest, depreciation)44619.9454663.5443689.4735692.61
Finance Cost372.27722.29221.95173.42
Depreciation and amortization expenses81.75154.97133.4587.89
Profit before tax536.52863.83413.83253.11
Provision for tax
(including Deferred Tax)
137.49287.37135.3782.53
Profit /(Loss) after tax399.03576.46278.46170.58
Equity Share Capital1411.051411.05*1411.051411.05
Reserves1518.941206.67639.04365.02
Networth2929.992617.722050.091776.07
Total Debt4500.365983.144831.413504.02

Aditya Vision Buyback Dates

Date of Board Meeting approving the BuybackDecember 17, 2019
Date of publication of Public Announcement for BuybackFebruary 03, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersFebruary 12, 2020
Buyback Opening dateMarch 18, 2020
Buyback Closing dateApril 01, 2020
Last Date of verification of Tender Forms by the RegistrarApril 09, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarApril 09, 2020
*Last date of Settlement of Bids on the BSE LimitedApril 16, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedApril 17, 2020
*Last date of Extinguishment of Equity SharesApril 27, 2020

Details of Public Announcement

The Public Announcement dated February 01, 2020 was published on February 03, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution i.e. January 31, 2020:

PublicationLanguageEdition
Business StandardEnglishAll editions
Business StandardHindiAll editions

Necessity of Aditya Vision Company Limited Buyback

The Company’s management strives to increase the Equity Shareholders’ value and the Buyback would result in the following benefits, amongst other things:

i. The Buyback will improve the Earnings Per Share (EPS), Return on Capital Employed (ROCE) and Return on Equity (ROE);

ii. The Buyback will help in achieving an optimal capital structure;

iii. The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of number of shares as per the entitlement of the shareholders or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder” as per Regulation 2 (i)(n) of the SEBI Buyback Regulations;

iv. The Buyback gives an option to the equity shareholders to either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post Buyback, without additional investment.


Impact of Aditya Vision Company Limited Buyback on the Company

The Buyback is not likely to cause any 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.

The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.

This Buyback is not expected to impact growth opportunities for the Company.

The Promoters and Promoter Group of the Company have the 11 option to participate in the Buyback. In this regard, the Promoters and Promoter Group of the have expressed, vide their intention letters dated December17, 2019 that they do not intend to participate in the Buyback.

Consequent to the Buyback and based on the number of shares bought back within each category of shareholders, the shareholding pattern of the Company would undergo a change.

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended September 30, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended September 30, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)2929.992259.99
Return on Net worth (%)13.6217.66
Earnings Per Share (Rs)2.833.71
Book Value per Share (Rs)20.7621.00
P/E as per the latest audited standalone financial statements7.866.00
Total Debt / Equity Ratio1.541.99

Basis of Calculating Aditya Vision Company Buyback Price

The Equity Shares of the Company are proposed to be bought back at a price of Rs.20/- (Rupees Twenty only) per Equity Share. The Buyback Price has been arrived at after considering various factors including, but not limited to the trends in the market prices of the Equity Shares on 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 Buyback on the earnings per Equity Share.

The Buyback Price of Rs.20/- (Rupees Twenty only) per Equity Share represents a premium of 6.67% over the closing market price of the Equity Shares on the BSE as on December 10, 2019, being the date on which the Company intimated the Stock Exchange of the date of the meeting of the Board wherein proposal of the Buyback was to be considered.


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be deployed by the Company for the purposes of the Buyback, would be Rs.6,70,00,000 excluding any expense incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, brokerage, applicable taxes such as securities transaction taxes, goods and services tax, stamp duty, advisors’ fees, public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses.

The funds for the Buyback will be sourced from internal accruals. The Company has confirmed that funds for Buyback will be available from cash balances and/or liquidation of financial instruments and/or other sources available with the Company as permitted by the Buyback Regulations.

The Company shall transfer from its free reserves or securities premium account a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and details of such transfer shall be disclosed in its subsequent audited financial statement. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.


Aditya Vision Company Limited – Manager to the Buyback

Guiness Corporate Advisors Private Limited
18, Deshapriya Park Road,
Kolkata-700026
Tel: +91-30015555;
Email: gcapl@guinessgroup.net
Website: ww.guinesscorporate.com
Contact Person : Ms. Alka Mishra
SEBI Registration: INM000011930
CIN: U74999WB1976PTC030545

Aditya Vision Company Limited – Registrar to the Buyback

Cameo Corporate Services Limited
“Subramanian Building”, No.1, Club House Road,
Chennai – 600 002
Tel: 044-40020700; Fax: 044-28460129
Email: investor@cameoindia.com
Website:www.cameoindia.com
Contact Person: Ms. Sreepriya. K
SEBI Registration: INR000003753
CIN: U67120TN1998PLC041613

Aditya Vision Company Limited Contact Details

Company Contact Details
Aditya Vision Limited
CIN: L32109BR1999PLC008783
Registered Office: M 20, Aditya House, 1st, 2nd& 3rd Floor, Road No. 26, S.K. Nagar, Patna – 800001,Bihar, India
Tel.: +91 612-2520874/54; E-mail: cs@adityavision.in; Website: www.adityavision.in
Contact Person: Ms. Akanksha Arya, Company Secretary and Compliance Officer

 


Aditya Vision Company Limited Buyback News

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

News 2 – Aditya Vision Company Ltd – Public Announcement


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