Archidply Industries Buyback Review, Offer Details, Price, Dates, Size & more
In this article, we will discuss about Archidply Industries Limited Buyback offer, buyback price, buyback size, Archidply Industries Buyback record date, company financial, buyback necessity and its impact on company.
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Archidply Industries Limited Buyback Details
|Buyback Type||Tender Offer|
|Buyback Offer Amount||Rs.8,14,00,000|
|Buyback No. of Shares||22,00,000|
|Date of Buyback Approval||January 06, 2021|
|Date of Public Announcement||January 07, 2021|
|Buy Back Price||Rs.37|
|Buy Back Premium||33.74%|
|Date of Board Meeting||January 06, 2021|
Archidply Industries Buyback Opening and Closing Date
The starting and closing date of this buyback is from [•] to [•].
Archidply Industries Buyback Cash Offer
Cash Offer to Buy-back up to 22,00,000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 9.97% of the issued, subscribed and paid-up Equity Shares of the Company.
Archidply Industries Buyback Record Date
The decided record date is JANUARY 19, 2021.
Archidply Industries Buyback Price
At a price of Rs.37 per Equity Share.
Archidply Industries Buyback Size
At a buyback price of Rs.37 payable in cash for an aggregate maximum amount of Rs.8,14,00,000.
Archidply Industries 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.
Archidply Industries Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
|Acceptance Ratio||Total Shares Accepted||Buyback Price||Buyback Amount||Profit||Profit%|
Profit is calculated from Jan 19, 2021 share price i.e. Rs.36.25 per share of Archidply Industries Limited.
According to the above table, if a shareowner applies for 1000 shares of Archidply Industries limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.37 per share & receive Rs.150 as profit amount & 0.41% 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.37 & receive a profit of Rs.450 @ 1.24% profit percentage.
Archidply Industries Buyback Overview
Archidply Industries Limited is the flagship company of the Archidply group.
They are a part of the Archidply Group which has been associated with plywood manufacturing for more than 40 years under the brand ‘Archidply’.
The Group has grown from a small saw mill in Assam to a modern state-of-the-art manufacturer of wood panel products and decorative surfacing products in three locations, Rudrapur, Mysore and Assam, with a network of branches, distributors and dealers across India.
The registered office of the Company is located at Plot No. 7, Sector -9, Integrated Industrial Estate, Sidcul, Pant Nagar, Rudrapur, Udham Singh Nagar, Rudrapur – 263153.
Archidply Industries Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Lakhs]
|Particulars||Sep 30, 2020 (Unaudited)||12 Months period ended March 31|
|Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items)||7,524.44||25,039.27||31,065.53||29,261.22|
|Profit before tax||(83.14)||648.35||508.88||383.45|
|Profit /(Loss) after tax||(77.48)||377.79||446.31||250.90|
|Equity Share Capital||2,206.50||2,206.50||*2,206.50||2,206.50|
|Reserve and Surplus||6,591.96||6,671.82||11,430.90||10,985.45|
Archidply Industries Limited Buyback Dates
|Date of Board Meeting approving the Buyback||January 06, 2021|
|Date of publication of Public Announcement for Buyback||January 07, 2021|
|Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders||January 19, 2021|
|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
This is to say, in accordance with Regulation 7(i) of the Buyback Regulations, the Public Announcement was published on January 08, 2021 in the following newspapers:
|Financial Express||English||All Editions|
|Uttaranchal Darpan Express||Hindi||Uttarakhand edition|
|Jan Satta||Hindi||All editions|
Necessity of Archidply Industries Buyback
The Buyback is being undertaken by the Company to return surplus funds to its equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective and cost-efficient manner. The Buyback is being undertaken for the following reasons:
a) The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby enhancing the overall returns to shareholders;
b) The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve a reservation of up to 15% of the Buyback Size for “small shareholders” (as defined below). The Company believes that this reservation of up to 15% for small shareholders would benefit a large number of the Company’s public shareholders, who would be classified as “small shareholders”;
c) The Buy-back will help in achieving optimal capital structure.
d) The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company; and
e) The Buyback gives the Eligible Shareholders the choice to either (A) participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or (B) not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.
Impact of Archidply Industries Buyback on the Company
The Company believes that the Buyback 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.
The Buyback shall not result in a change in control or otherwise affect the existing management structure of the Company.
The debt-equity ratio after the completion of the Buyback will be within the permissible limit of 2:1 prescribed by the Act and the Buyback Regulations, based on unaudited financial statements of the Company, even if the response to the Buyback is to the extent of 100% (full acceptance).
The Company believes that the Buyback will not impact the growth opportunities of the Company.
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for September 30, 2020 are as under:
|Parameters (based on audited standalone financial statements for September 30, 2020)||Pre Buy-back||Post Buy-back|
(Assuming Full Acceptance)
|Net worth (Rs in crores)||8768.46||7954.46|
|Return on Net worth (%)||(0.88)||(0.97)|
|Earnings Per Share (Rs)||(0.35)||(0.39)|
|Book Value per Share (Rs)||39.74||40.04|
|Price / Earnings Ratio (P/E)**||(71.14)||(63.84)|
|Total Debt / Equity Ratio||0.47||0.52|
Basis of Calculating Archidply Industries Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Offer Price, i.e. a price of Rs. 37 per share. The Offer Price has been arrived at after considering various factors such as the average closing prices of the equity shares on the Stock Exchanges where the Equity Shares of the Company are listed and the impact of the Buyback on the key financial ratios of the Company.
The Buyback Offer Price of Rs.37/- per Equity Share represents:
(i) premium of 33.74% on BSE and 31.65% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE respectively for 3 months preceding the date of intimation to the BSE and NSE for the Board Meeting to consider the proposal of the Buyback;
(ii) premium of 27.51% on BSE and 26.80% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE respectively for 2 weeks preceding the date of intimation to the BSE and NSE for the Board Meeting to consider the proposal of the Buyback;
(iii) premium of 21.71% on BSE and 20.92% on NSE over the closing market price of the Equity Shares on BSE and NSE as on the date of the intimation to BSE and NSE for the Board Meeting to consider the proposal of the Buyback.
Source of Funds for the Buyback
Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback of upto 22,00,000 Equity Shares at a price of Rs 37 per Equity Share would not exceed Rs.8,14,00,000 excluding transaction costs, applicable taxes, other incidental and related expense.
The funds for the implementation of the proposed Buyback will be sourced out of the free reserves (retained earnings) and/ or such other source as may be permitted by the Buyback Regulations or the Act.
The Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares so bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
Archidply Industries Limited – Manager to the Buyback
|FAST TRACK FINSEC PRIVATE LIMTED|
611, 6th Floor, Pragati Tower,
Rajendra Place, New Delhi- 110008
Contact person: Mr. Pawan Kumar Mahur
SEBI Registration No.: INM000012500
Validity Period: Permanent
Archidply Industries Ltd – Registrar to the Buyback
SKYLINE FINANCIAL SERVICES PRIVATE LIMITED
D-153 A, 1st Floor, Okhla Industrial Area, Phase- I, New Delhi- 110020
Tel: + 91 11 26812682-83;
Contact Person: Mr. Virender Rana
SEBI Registration No.: INR000003241
Archidply Industries Ltd Contact Details
|Company Contact Details|
|ARCHIDPLY INDUSTRIES LIMITED|
Reg. Office: Plot No. 7, Sector-9, Integrated Industrial Estate, Sidcul, Pant Nagar, Rudrapur, Udham Singh Nagar, Uttrakhand- 263153
Correspondence Address: 2/9, 1st Floor, WHS, Block-A, Kirti Nagar, New Delhi- 110015
Tel: +91-11-45642555, 45530828
Compliance Officer: Mr. Atul Krishna Pandey
Archidply Industries Limited Buyback News
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