Amrit Corp Buyback Review, Offer Details, Price, Dates, Size & more

In this article, they will discuss about Amrit Corp Limited Buyback offer, buyback price, buyback size, Amrit Corp Buyback record date, company financial, buyback necessity and its impact on company.

Amrit Corp Limited Buyback Details

Buyback TypeTender Offer
Opening DateJULY 16, 2020
Closing DateJULY 29, 2020
Buyback Offer AmountRs.14,43,75,000
Buyback No. of Shares1,75,000
Face ValueRs.10
Date of Buyback ApprovalJune 22, 2020
Date of Public AnnouncementJune 23, 2020
Buy Back PriceRs.825
Buy Back Premium27.91%
Date of Board MeetingJune 22, 2020

Amrit Corp Buyback Opening and Closing Date

The starting and closing date of this buyback is from JULY 16, 2020 to JULY 29, 2020.

Amrit Corp Buyback Cash Offer

Cash Offer to Buy-back up to 1,75,000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 5.45% of the total number of equity shares.

Amrit Corp Buyback Record Date

The decided record date is July 03, 2020.

Amrit Corp Buyback Price

At a price of Rs.825 per Equity Share.

Amrit Corp Buyback Size

At a buyback price of Rs.825 payable in cash for an aggregate maximum amount of Rs.14,43,75,000.

Amrit Corp 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.


Amrit Corp 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%200825165000100001.29%
40%400825330000200002.58%
60%600825495000300003.87%
80%800825660000400005.16%
100%1000825825000500006.45%

Profit is calculated from Jun 30, 2020 share price i.e. Rs.775 per share of Amrit Corp Limited.

According to the above table, if a shareowner applies for 1000 shares of Amrit Corp limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.825 per share & receive Rs.10000 as profit amount & 1.29% 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.825 & receive a profit of Rs.30000 @ 3.87% profit percentage.


Amrit Corp Limited Buyback Overview

Amrit Corp BuybackThe name of the Company was changed from ‘Amrit Banaspati Company Limited’ to “Amrit Corp. Ltd.” in the year 2007 pursuant to a Scheme of Arrangement wherein demerger of the edible oils and paper businesses into two separate entities.

The Company after demerger in 2007 has two segments of business viz. Dairy Milk/ Milk Products and Real Estate. The Company has set-up a milk plant at GT Road, Ghaziabad (U.P.) where high quality milk products, viz., Soft Serve Milk, Ice Cream Mix, Instant Dessert Mix, Milk Shake Mix, Whip Milk etc. are processed for supply to quick service restaurants (QSRs).

A few products (UHT Milk, Flavoured Milk, Fresh Cream, etc.) are supplied in the market. As regards real estate business, the Company has developed a 16-acre township named as ‘Gagan Enclave’ at Ghaziabad which is completely inhabited and except for some commercial space/inventory, the entire township has been sold off by the Company.


Company Finances – Amrit Corp Limited

The brief audited consolidated financial information of the Company for the last three financial years ended March 31, 2020, are provided below:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
202020192018
Total Income7,162.217,863.817,741.64
Total Expenses (excluding Interest, depreciation)7,609.566,574.855,695.92
Finance Cost29.1477.14153.50
Depreciation and Amortization224.23168.88155.20
Profit before tax(700.72)1,042.941,737.02
Provision for tax
(including Deferred Tax)
(441.43)(95.79)84.4
Profit /(Loss) after tax(259.29)1,138.731,652.62
Equity Share Capital321.32*321.32321.32
Reserves19,517.7620,279.9519,548.47
Networth19,755.4320,507.6919,703.96
Total Debt169.06139.951,556.91

Amrit Corp Limited Buyback Dates

Date of Board Meeting approving the BuybackMonday, June 22, 2020
Date of publication of Public Announcement for BuybackWednesday, June 24, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersFriday, July 03, 2020
Buyback Opening dateThursday, July 16, 2020
Buyback Closing dateWednesday, July 29, 2020
Last Date of verification of Tender Forms by the RegistrarThursday, August 06, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarThursday, August 06, 2020
*Last date of Settlement of Bids on the BSE LimitedFriday, August 07, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedFriday, August 07, 2020
*Last date of Extinguishment of Equity SharesFriday, August 14, 2020

Details of Public Announcement

The Public Announcement dated June 23, 2020 was published on June 24, 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:

PublicationLanguageEdition
Financial ExpressEnglish national daily newspaperAll editions
JansattaHindi national daily newspaper, Hindi is also the regional language where the registered office of the Company is situatedAll editions

Necessity of Amrit Corp 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:

a) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;
b) The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
c) The Buyback gives an option to the shareholders holding Equity Shares of the Company, either to sell their Equity Shares and receive cash or not to sell their Equity Shares and get a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment and;
d) The Buyback, which is being implemented through the tender offer as prescribed under the Buyback Regulations, would involve minimum reservation of 15% for Small Shareholders and allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, 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.


Impact of Amrit Corp Limited Buyback on the Company

They believe that the Buyback is not likely to cause any material impact on the profitability/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.

Consequent to the Buyback and depending on the number of Equity Shares bought back from the Non-Resident Shareholders, Indian financial institutions, banks, mutual funds and other public shareholders, the shareholding of each such person shall 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 March 31, 2020 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)19,755.4317,979.42
Return on Net worth (%)(1.31%)(1.44%)
Earnings Per Share Basic (Rs)(8.07)(8.53)
Book Value per Share (Rs)614.82591.77
Total Debt / Equity Ratio0.00850.0094

Basis of Calculating Amrit Corp Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.825/- (Rupees Eight Hundred Twenty Five Only) per Equity Share.

The Buyback Price of 825/- (Rupees Eight Hundred Twenty Five Only) per Equity Share has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average price and closing price of the Equity Shares on the BSE.

The Buyback Price represents

  • Premium of 27.91% over the closing price of the Equity Shares on BSE, as on Wednesday, June 17, 2020 being the date on which the Company intimated to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
  • Premium of 31.99 % over the volume weighted average market price of the Equity Shares on BSE, during the two weeks preceding the date of intimation to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
  • A Premium of 30.15 % over the volume weighted average market price of the Equity Shares on BSE, during the 60 trading days preceding the date of intimation to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
  • Premium of 34.19% over the book value per share as on 31.03.2020.

Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback would be Rs.14,43,75,000/- (Rupees Fourteen Crores Forty Three Lakhs Seventy Five Thousand Only), excluding Transaction Costs.

The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback Regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.

The funds for the Buyback will be sourced from the cash and cash equivalents and/or accumulated internal accruals and no borrowings are made to discharge the Buyback obligations. However, if required, the Company may borrow funds in the ordinary course of its business.

This Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.

The Company shall transfer from its free reserves a sum equal to the nominal value of the equity shares purchased through the Buyback to the Capital Redemption Reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statement.


Amrit Corp Limited – Manager to the Buyback

Inga Ventures Private Limited
1229, Hubtown Solaris, N.S. Phadke Marg,
Opp. Telli Galli, Andheri (East), Mumbai 400069
Tel. No.: +91 022 26816003, Fax: +91 022 26816020;
Contact Person: Kavita Shah;
Email: kavita@ingaventures.com;
Website: www.ingaventures.com;
SEBI Registration No: INM000012698;
Validity Period: Permanent
CIN: U67100MH2018PTC318359

Amrit Corp Limited – Registrar to the Buyback

MAS Services Limited
T-34, 2nd Floor, Okhla Industrial Area Phase II,
New Delhi – 110020
Tel. No.: 011-26387281/82/83; Fax: 011-26387284;
Contact person: Sharwan Mangal;
Email: info@masserv.com
Website: www.masserv.com
SEBI Registration No: INR000000049;
Validity Period: Permanent
CIN: U74899DL1973PLC006950

Amrit Corp Limited Contact Details

Company Contact Details
AMRIT CORP. LIMITED
Registered Office: CM-28 (First Floor), Gagan Enclave, Amrit Nagar, G T Road, Ghaziabad – 201009 (UP);
Corporate Office: A-95, Sector-65, Noida-201309(U.P.)
Corporate Identity Number (CIN): L15141UP1940PLC000946;
Tel. No.: 0120-4506900; Fax: 0120-4506910; Email: info@amritcorp.com; Website: www.amritcorp.com;
Contact Person: Mr. Pranab Kumar Das, Company Secretary & Compliance Officer

 


Amrit Corp Limited Buyback News

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

News 2 – Amrit Corp Ltd – Public Announcement


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