Asahi Songwon Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, they will discuss about Asahi Songwon Limited Buyback offer, buyback price, buyback size, Asahi Songwon Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – Asahi Songwon Share Price
Asahi Songwon Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | December 10, 2020 |
| Closing Date | December 23, 2020 |
| Buyback Offer Amount | Rs.8,08,50,000 |
| Buyback No. of Shares | 2,45,000 |
| Face Value | Rs.10 |
| Date of Buyback Approval | November 06, 2020 |
| Date of Public Announcement | November 10, 2020 |
| Buy Back Price | Rs.330 |
| Buy Back Premium | NA |
| Date of Board Meeting | November 06, 2020 |
Asahi Songwon Buyback Opening and Closing Date
The starting and closing date of this buyback is from December 10, 2020 to December 23, 2020.
Asahi Songwon Buyback Cash Offer
Cash Offer to Buy-back up to 2,45,000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 2.00% of the issued, subscribed and paid-up Equity Shares of the Company.
Asahi Songwon Buyback Record Date
The decided record date is NOVEMBER 20, 2020.
Asahi Songwon Buyback Price
At a price of Rs.330 per Equity Share.
Asahi Songwon Buyback Size
At a buyback price of Rs.330 payable in cash for an aggregate maximum amount of Rs.8,08,50,000.
Asahi Songwon 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.
Asahi Songwon 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% |
| 20% | 200 | 330 | 66000 | 22260 | 10.18% |
| 40% | 400 | 330 | 132000 | 44520 | 20.36% |
| 60% | 600 | 330 | 198000 | 66780 | 30.53% |
| 80% | 800 | 330 | 264000 | 89040 | 40.71% |
| 100% | 1000 | 330 | 330000 | 111300 | 50.89% |
Profit is calculated from Dec 02, 2020 share price that is Rs.218.70 per share of Asahi Songwon Limited.
According to the above table, if a shareowner applies for 1000 shares of Asahi Songwon limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.330 per share & receive Rs.22260 as profit amount & 10.18% 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.330 & receive a profit of Rs.66780 @ 30.53% profit percentage.
Asahi Songwon Limited Buyback Overview
The Company engaged in the business of manufacturing and exports of Color pigments.
At present the company is dealing in Phthalocyanine Pigments namely Pigment Blues. The Company deals in following pigments: CPC Blue Crude, Pigment Alfa Blue 15:0, Pigment Alfa Blue 15:1, Pigment Beta Blue 15:3, Pigment Blue 15.4
The Company has manufacturing facilities at Padra, Vadodara, Gujarat in India.
Asahi Songwon Colors Limited (“ASCL”) was formed and incorporated in the name of Lucky Laminates Private Limited (“LLPL”) on December 10, 1990 with the Registrar of Companies, Gujarat. The name of the Company was changed to Asahi Songwon Colors Limited.
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Company Finances – Asahi Songwon Ltd
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. lakhs]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 12,059.06 | 28,442.40 | 29,366.28 | 29,830.38 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 9,730.90 | 24,924.13 | 25,408.59 | 25,558.61 |
| Finance Cost | 90.29 | 359.74 | 517.27 | 353.28 |
| Depreciation | 421.94 | 831.69 | 816.12 | 721.93 |
| Profit before tax | 2,261.17 | 2,326.84 | 2,624.30 | 3,196.56 |
| Provision for tax (including Deferred Tax) |
534.12 | 44.35 | 794.80 | 889.00 |
| Profit /(Loss) after tax | 1,727.05 | 2,282.49 | 1,829.50 | 2,307.56 |
| Equity Share Capital | 1,227.23 | *1,227.23 | 1,227.23 | 1,227.23 |
| Reserve and Surplus | 21,239.00 | 18,931.06 | 18,132.26 | 16,936.93 |
| Networth | 22,466.23 | 20,158.29 | 19,359.49 | 18,164.16 |
| Total Debt | 1,588.09 | 2,150.79 | 6,193.28 | 7,650.84 |
Asahi Songwon Limited Buyback Dates
| Date of Board Meeting approving the Buyback | November 06, 2020 |
| Date of publication of Public Announcement for Buyback | November 10, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | November 20, 2020 |
| Buyback Opening date | December 10, 2020 |
| Buyback Closing date | December 23, 2020 |
| Last Date of verification of Tender Forms by the Registrar | December 30, 2020 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | January 01, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | January 04, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | January 04, 2021 |
| *Last date of Extinguishment of Equity Shares | January 11, 2021 |
Details of Public Announcement
The Public Announcement was published on November 10, 2020 in the following newspapers:
| Publication | Language | Edition |
| The Financial Express | English | All Editions |
| Jansatta | Hindi | All Editions |
| The Financial Express | Gujarati | Ahmedabad only |
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Necessity of Asahi Songwon Limited Buyback
The Buyback is being proposed by the Company to return surplus funds to the Shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, efficient and cost effective manner. Additionally, the Company’s management strives to increase the Shareholders’ value and the Buyback would result in the following benefits, amongst other things:
Improving the return on equity, by reduction in the equity base, thereby leading to long term increase in Equity Shareholders’ value.
Helping the Company to distribute surplus cash to its Equity Shareholders, broadly in proportion to their shareholding, thereby, enhancing the overall return to the Equity Shareholders.
Provides an option to the Equity Shareholders to either (i) participate and receive cash payments in lieu of Equity Shares to be accepted under the Buyback, or (ii) not participate and enjoy a resultant increase in their percentage shareholding in the Company, after the Buyback, without any additional investment.
The Buyback, which is being implemented through the tender offer method as prescribed under the Buyback Regulations and SEBI Circulars, would involve an allocation of 15% of the Equity Shares that the Company proposes to Buyback to Small Shareholders as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
The Buyback is not likely to cause any material impact on the profitability or earnings of the Company except a reduction in current investments.
Impact of Asahi Songwon Limited Buyback on the Company
The Company believes that the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company except a reduction in the current investments.
Assuming there is full response to the Buyback, the funds deployed by the Company towards the Buyback would be Rs 8,08,50,000 (Rupees Eight Crore Eight Lakh and Fifty Thousand only) excluding the Transaction Costs.
The Company believes that the Buyback will not in any manner impair its ability to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is likely to result in improvement in EPS and enhance the return on equity.
This Buyback is not expected to result in a change in control or otherwise affect the existing management structure of the Company.
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, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 20,158.29 | 19,349.79 |
| Return on Net worth (%) | 11.32 | 11.80 |
| Earnings Per Share (Rs) | 18.60 | 18.98 |
| Book Value per Share (Rs) | 164.26 | 160.88 |
| Price / Earnings Ratio (P/E)** | 12.90 | 12.64 |
| Total Debt / Equity Ratio | 0.11 | 0.11 |
Basis of Calculating Asahi Songwon Buyback Price
The Buyback Offer Price being Rs 330/- per Equity Share has been arrived at after considering various factors including.
The closing market price of the Equity Shares as on the date of intimation of the date of the Board Meeting i.e. November 03, 2020 was Rs 212.65 and Rs 211.80 on NSE and BSE, respectively.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilised by the Company for the purpose of the Buyback would be Rs 8,08,50,000 excluding the Transaction Costs.
The funds required for implementation of the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company and/or liquidation of financial instruments held by the Company.
The Company will transfer from its free reserves and/or securities premium account a sum equal to the nominal value of the Equity Shares bought back pursuant to the Buyback to the Capital Redemption Reserve Account and details of such transfer will be disclosed in the subsequent audited financial statements of the Company.
The Company confirms that the funds for the Buyback will be made available out of its internal accruals and not out of the funds borrowed, if any, from banks and financial institutions.
Asahi Songwon Limited – Manager to the Buyback
| SYSTEMATIX CORPORATE SERVICES LIMITED The Capital, A Wing, 603-606, 6th Floor, Plot No. C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India. Tel: +91-22-6704 8000 Fax:+91-22-6704 8022 Email: ecm@systematixgroup.in Website: www.systematixgroup.in Contact Person: Mr. Amit Kumar SEBI Registration Number: INM 000004224 |
Asahi Songwon Ltd Buyback – Registrar to the Buyback
|
LINKINTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West) Mumbai – 400083, Maharashtra, India. Tel: +91 22 4918 6200 Fax: +91-22-4918 6195 Email: asahisongwon.buyback@linkintime.co.in Website: www.linkintime.co.in Contact Person: Mr. Sumeet Deshpande SEBI Registration Number: INR000004058 |
Asahi Songwon Buyback – Contact Details
| Company Contact Details |
| ASAHI SONGWON COLORS LIMITED Registered Office : “Asahi House”, 13, Aaryans Corporate Park, Thaltej, Nr. Shilaj Railway Crossing, Thaltej-Shilaj Road, Ahmedabad -380059 Corporate Identification Number (CIN): L24222GJ1990PLC014789 Tel: +91-79-68325000; Fax: +91-79-68325099; Email: cs@asahisongwon.com ; Website: www.asahisongwon.com Contact Person: Mr. Saji V. Joseph, Company Secretary and Compliance Officer |
Asahi Songwon Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Asahi Songwon Ltd – Public Announcement
FAQs of Asahi Songwon Buyback
What is the Asahi Songwon Buyback Period?
Asahi Songwon Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. December 10, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. December 23, 2020.
What type of buyback is Asahi Songwon Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the Asahi Songwon Buyback Offer?
Asahi Songwon Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 2,45,000 Fully paid up Equity shares, adhering to the buyback price.
When Asahi Songwon Buyback offer will start?
As per the released schedule, the Asahi Songwon Buyback offer will start on December 10, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Asahi Songwon Buyback at all times, we ensure you have access to the right data.
When is the closing date of Asahi Songwon Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Asahi Songwon Buyback. The buyback would close on December 23, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Asahi Songwon Buyback?
The amount at which the shares are taken back by the company is referred to as Asahi Songwon Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.330, the price paid to each eligible shareholder.
What is the record date for Asahi Songwon Buyback offer?
Record date of Asahi Songwon Buyback is NOVEMBER 20, 2020. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Asahi Songwon Buyback?
Asahi Songwon Buyback Size is Rs.8,08,50,000 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for Asahi Songwon Buyback?
Objective of the Asahi Songwon Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Asahi Songwon Buyback offer?
The designated registrar of Asahi Songwon Buyback is LINKINTIME INDIA PRIVATE LIMITED. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the Asahi Songwon Buyback offer?
Manager to the Asahi Songwon Buyback is SYSTEMATIX CORPORATE SERVICES LIMITED. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Asahi Songwon buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find Asahi Songwon Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the Asahi Songwon Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Asahi Songwon Buyback Dates.
What can be the Impact of Asahi Songwon Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on Asahi Songwon Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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