Balrampur Chini Mills Buyback – Review, Offer Details, Price, Dates & more
Last Updated Date: Aug 30, 2023In this article, we will discuss about Balrampur Chini Mills Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity, and its impact on the company.
To track the real-time price of this Buyback, Click on this link – Balrampur Chini Mills Share Price
Balrampur Chini Mills Limited Buyback Details
| Buyback Type | Open Market Through Stock Exchanges |
| Buyback Opening Date | August 17, 2021 |
| Buyback Closing Date | October 21, 2021 |
| Buyback Offer Amount | Rs. 215.24 Cr/- |
| Buyback No. of Shares | 59,60,000 |
| Face Value | Re. 1/- |
| Date of Buyback Approval | August 10, 2021 |
| Date of Public Announcement | August 11, 2021 |
| Buy Back Price | Rs. 384/- |
| Buy Back Premium | 33.98% |
Balrampur Chini Mills Buyback Opening and Closing Date
The starting and closing date of this buyback are from August 17, 2021, to October 21, 2021.
Balrampur Chini Mills Buyback Cash Offer
The Cash Offer to Buy-back up to 59,60,000 fully paid-up equity shares of the Company of the face value of Re. 1 each.
Balrampur Chini Mills Buyback Record Date
The decided record date is [●].
Balrampur Chini Mills Buyback Price
At a price of Rs. 384 per Equity Share.
Balrampur Chini Mills Buyback Size
The Buyback is for an aggregate amount not exceeding Rs.215.24 Cr.
Balrampur Chini Mills Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 384 | 76800 | 15200 | 4.94% |
| 40% | 400 | 384 | 153600 | 30400 | 9.87% |
| 60% | 600 | 384 | 230400 | 45600 | 14.81% |
| 80% | 800 | 384 | 307200 | 60800 | 19.74% |
| 100% | 1000 | 384 | 384000 | 76000 | 24.68% |
Profit is calculated from Oct 25, 2021 share price i.e. Rs.308 per share of Balrampur Chini Mills Limited.
According to the above table, if a shareowner applies for 1000 shares of Balrampur Chini Mills Limited & gets 20% acceptance from the company, the owner of these 1000 shares will sell 200 shares @ Rs.384 per share & receive Rs.15200 as profit amount & 4.94% 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.384 & receive a profit of Rs.45600 @ 14.81% profit percentage.
Balrampur Chini Mills Limited Buyback Overview
The Company is engaged in the business of manufacturing of sugar in India. Its allied business consists of manufacturing and marketing of ethanol, generation, and selling of power.
The Company has 10 sugar factories located in Uttar Pradesh, having an aggregate crushing capacity of 76,500 tons per day.
The Equity Shares are currently traded in the compulsory dematerialized mode under the trading code(s) 500038 at BSE and BALRAMCHIN at NSE. The ISIN of the Equity Shares is INE119A01028.
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Company Finances – Balrampur Chini Mills Limited
The salient financial information of the Company, as extracted from: (i) the audited standalone and consolidated results for the fiscal year 2018, 2019, and 2020, which have been subjected to a limited review by the Statutory Auditor are given below:
(Rs. in Lakhs)
| Particulars | Standalone | Consolidated | ||||
| Audited | Audited | |||||
| March 31, 2018 |
March 31, 2017 |
March 31, 2016 |
March 31, 2018 |
March 31, 2017 |
March 31, 2016 |
|
| Revenue from Operations (Net) |
4,74,129.40 | 4,28,577.51 | 4,34,254.30 | 4,74,129.40 | 4,28,577.51 | 4,34,254.30 |
| Other Income | 3,854.67 | 4,274.50 | 2,777.87 | 4,387.18 | 4,274.50 | 3,033.73 |
| Total Income (Net) | 4,77,984.07 | 4,32,852.01 | 4,37,032.17 | 4,78,516.58 | 4,32,852.01 | 4,37,288.03 |
| Total Expense (excluding Finance Cost, Depreciation & Amortisation, Tax and Exceptional Items) |
4,05,932.47 | 3,59,670.10 | 3,89,088.63 | 4,05,932.47 | 3,59,670.10 | 3,89,088.63 |
| Finance Cost | 6,417.02 | 4,093.51 | 5,203.00 | 6,417.02 | 4,093.51 | 5,203.00 |
| Depreciation & Amortisation | 10,141.73 | 9,585.13 | 9,522.11 | 10,141.73 | 9,585.13 | 9,522.11 |
| Exceptional Items | – | – | – | – | – | – |
| Profit before share of net profit of investments accounted for using the equity method and tax |
55,492.85 | 59,503.27 | 33,218.43 | 56,025.36 | 59,503.27 | 33,474.29 |
| Share of net profit/ (loss) of joint venture accounted for using the equity method |
– | – | – | 780.67 | 675.48 | 1,041.11 |
| Profit Before Tax | 55,492.85 | 59,503.27 | 33,218.43 | 56,806.03 | 60,178.75 | 34,515.40 |
| Tax Expense | 4,564.67 | 2,439.41 | 11,106.37 | 4,870.59 | 2,596.77 | 11,348.91 |
| Profit After Tax | 50,928.18 | 57,063.86 | 22,112.06 | 51,935.44 | 57,581.98 | 23,166.49 |
| Other Comprehensive Income | (701.39) | (513.88) | (455.20) | (689.56) | (514.31) | (456.74) |
| Total Comprehensive Income | 50,226.79 | 56,549.98 | 21,656.86 | 51,245.88 | 57,067.67 | 22,709.75 |
| Paid-up Equity Share Capital | 2,200.00 | 2,284.38 | 2,284.28 | 2,200.00 | 2,284.38 | 2,284.28 |
| Other Equity | 2,34,841.16 | 2,05,985.50 | 1,56,430.45 | 2,39,369.47 | 2,09,494.72 | 1,59,421.98 |
| Net worth | 2,28,749.68 | 2,00,110.12 | 1,50,437.15 | 2,31,168.99 | 2,01,510.34 | 1,51,319.68 |
| Total debt | 1,50,682.25 | 1,77,041.16 | 98,982.70 | 1,50,682.25 | 1,77,041.16 | 98,982.70 |
Balrampur Chini Mills Limited Buyback Dates
| Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares | August 10, 2021 |
| Date of publication of Public Announcement for the Buy-back | August 11, 2021 |
| Record Date for determining the Buy-back Entitlement and the Eligible Shareholders | [●] |
| Buy-back opens on / Buy-back Opening Date | August 17, 2021 |
| Buy-back closes on / Buy-back Closing Date | October 21, 2021 |
| Last date of verification by Registrar to Buy-back | [●] |
| Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-back | [●] |
| Last date of settlement of bids on the Stock Exchange | [●] |
| Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker | [●] |
| Last date of extinguishment of Equity Shares bought back | [●] |
Necessity of Balrampur Chini Mills 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:
- The Buyback will improve the Earnings Per Share (EPS), Return on Capital Employed (ROCE), and Return on Equity (ROE);
- It will help in achieving an optimal capital structure;
- The Buyback will help the Company to distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing their overall return;
- It is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, which would involve allocation of a 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;
- The Buyback gives an option to the equity shareholders to either choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or choose to not participate and enjoy a resultant increase in their percentage shareholding, post Buyback, without additional investment.
Find Latest Buybacks Offer, Performance and Financial details
Impact of Balrampur Chini Mills Limited Buyback on the Company
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.
Assuming response to the Buyback is to the extent of 100% (full acceptance) from all the Eligible Shareholders up to their Buyback Entitlement, the aggregate shareholding of the promoters, members of the promoter group, and persons in control post Buyback may increase from 40.98%, which is the shareholding as at date, to 41.12% of the post Buyback Equity Share capital of the Company and the aggregate shareholding of the public may decrease from 59.02%, which is the public shareholding as at date, to 58.88% of the post Buyback Equity Share capital of the Company.
As required under Section 68(2)(d) of the Companies Act, 2013 the ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice its paid-up Equity Share capital and free reserves post completion of the Buyback, even if the response to the Buyback is to the extent of 100% (full acceptance).
Salient financial parameters consequent to the Buyback based on the latest audited results as of March 31, 2020, are set forth below:
| Standalone | Consolidated | |||
| Parameters | Pre Buy- back |
Post Buy- back |
Pre Buy- back |
Post Buy- back |
| Net Worth (Rs. in Lakhs) | 2,14,429.90 | 1,96,429.90 | 2,16,339.67 | 1,98,339.67 |
| Return on Net Worth (%) | 23.75 | 25.93 | 24.01 | 26.19 |
| Earnings Per Share (EPS) (Basic) (in Rs.) | 22.98 | 24.07 | 23.44 | 24.54 |
| Book Value per share (in Rs.) | 103.98 | 108.93 | 105.08 | 110.08 |
| Price / Earnings Multiple | 5.86 | 5.60 | 5.75 | 5.49 |
| Total Debt / Equity Ratio | 0.66 | 0.71 | 0.65 | 0.71 |
Basis of Calculating Balrampur Chini Mills Buyback Price
The Buyback Offer Price being INR 384 per Equity Share has been arrived at after considering various factors including, but not limited to the trends in the volume-weighted average prices of the Equity Shares on the Stock Exchanges, the net worth of the Company, price-earnings ratio, impact on other financial parameters and the possible impact of Buyback on the EPS.
More on Balrampur Chini Mills Buyback Price Calculation
The Buyback Offer Price i.e., INR 384 per Equity Share represents, the premium of 63.17% and 62.11% over the volume-weighted average market price of the Equity Shares on BSE and on NSE, respectively, during the three months preceding June 15, 2020, being the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback and premium of 33.98% and 33.93% over the closing market price of the Equity Shares on BSE and on NSE, respectively, as on June 15, 2020.
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Source of Funds for the Buyback
The funds required for the implementation of the Buyback (including the Transaction Costs) 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.
This Company has neither raised nor does it intend to raise additional debt in connection with the Buyback.
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.
Balrampur Chini Mills Limited – Manager to the Buyback
| Axis Capital Limited
1st Floor, Axis House, C-2 Wadia International Centre, P. B. Marg, Worli, |
Balrampur Chini Mills Limited – Registrar to the Buyback
| Karvy Fintech Private Limited Karvy Selenium Tower B Plot 31-32, Gachibowli Financial District, Nanakramguda Serilingampally Hyderabad Rangareddi Telangana 500 032, India Tel: +91 40 6716 2222 Fax: +91 40 2343 1551 E-mail: bcml.buyback20@kfintech.com Investor Grievance Id: einward.ris@kfintech.com Contact Person: Mr. M. Murali Krishna SEBI Registration No.: INR000000221 Validity Period: Permanent |
Balrampur Chini Mills Limited Contact Details
| Company Contact Details |
| BALRAMPUR CHINI MILLS LIMITED CIN: L15421WB1975PLC030118 Registered Office: FMC Fortuna, 2nd Floor, 234/3A, A.J.C. Bose Road, Kolkata – 700 020 Contact Person: Mr. Manoj Agarwal, Company Secretary, and Compliance Officer Tel. No.: +91 33 2287 4749, Fax No.: +91 33 2287 3083 E-mail: investorgrievances@bcml.in Website: www.chini.com |
Balrampur Chini Mills Limited Buyback News
News 1 – Balrampur Chini Mills Ltd – Draft Letter of Offer [Download]
FAQs of Balrampur Chini Mills Buyback
What is the Balrampur Chini Mills Buyback Period?
Balrampur Chini Mills 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. August 17, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. October 21, 2021.
What type of buyback is Balrampur Chini Mills 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 Balrampur Chini Mills Buyback Offer?
Balrampur Chini Mills Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 59,60,000 Fully paid up Equity shares, adhering to the buyback price.
When Balrampur Chini Mills Buyback offer will start?
As per the released schedule, the Balrampur Chini Mills Buyback offer will start on August 17, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Balrampur Chini Mills Buyback at all times, we ensure you have access to the right data.
When is the closing date of Balrampur Chini Mills Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Balrampur Chini Mills Buyback. The buyback would close on October 21, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Balrampur Chini Mills Buyback?
The amount at which the shares are taken back by the company is referred to as Balrampur Chini Mills Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs. 384/-, the price paid to each eligible shareholder.
What is the record date for Balrampur Chini Mills Buyback offer?
Record date of Balrampur Chini Mills Buyback is NA. 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 Balrampur Chini Mills Buyback?
Balrampur Chini Mills Buyback Size is Rs. 215.24 Cr/- 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 Balrampur Chini Mills Buyback?
The Buyback gives an option to the equity shareholders to either choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or choose to not participate and enjoy a resultant increase in their percentage shareholding, post Buyback, without additional investment.
Who is the Registrar to Balrampur Chini Mills Buyback offer?
The designated registrar of Balrampur Chini Mills Buyback is Karvy Fintech 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 Balrampur Chini Mills Buyback offer?
Manager to the Balrampur Chini Mills Buyback is Axis Capital 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 Balrampur Chini Mills 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 Balrampur Chini Mills 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 Balrampur Chini Mills Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Balrampur Chini Mills Buyback Dates.
What can be the Impact of Balrampur Chini Mills 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 Balrampur Chini Mills 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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