Balrampur Chini Mills Buyback – Review, Offer Details, Price, Dates & more

In 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 company.

Balrampur Chini Mills Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening DateJuly 20, 2020
Buyback Closing DateJuly 31, 2020
Buyback Offer AmountRs. 180,00,00,000/-
Buyback No. of Shares1,00,00,000
Face ValueRe. 1/-
Date of Buyback ApprovalJune 23, 2020
Date of Public AnnouncementJune 25, 2020
Buy Back PriceRs. 180/-
Buy Back Premium33.98%

Balrampur Chini Mills Buyback Opening and Closing Date

The starting and closing date of this buyback is from July 20, 2020 to July 31, 2020.

Balrampur Chini Mills Buyback Cash Offer

The Cash Offer to Buy-back up to 1,00,00,000 (One Crore) fully paid-up equity shares of the Company of face value of Re. 1 each.

Balrampur Chini Mills Buyback Record Date

The decided record date is Thursday, July 03, 2020.

Balrampur Chini Mills Buyback Price

At a price of Rs. 180.00 (Rupees One Hundred Eighty only) per Equity Share.

Balrampur Chini Mills Buyback Size

The Buyback is for an aggregate amount not exceeding Rs.180,00,00,000 (Indian Rupees One Hundred Eighty Crores only).


Balrampur Chini Mills 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%20018036000108908.67%
40%400180720002178017.35%
60%6001801080003267026.02%
80%8001801440004356034.70%
100%10001801800005445043.37%

Profit is calculated from Jul 20, 2020 share price i.e. Rs.125.55 per share of Balrampur Chini Mills Limited.

According to the above table, if a share owner applies for 1000 shares of Balrampur Chini Mills Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.180 per share & receive Rs.10890 as profit amount & 8.67% 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.180 & receive a profit of Rs.32670 @ 26.02% profit percentage.


Balrampur Chini Mills Limited Buyback Overview

Balrampur Chini Mills BuybackThe 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 compulsory dematerialized mode under the trading code(s) 500038 at BSE and BALRAMCHIN at NSE. The ISIN of the Equity Shares is INE119A01028.


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)

ParticularsStandaloneConsolidated
AuditedAudited
 March
31, 2018
March
31, 2017
March
31, 2016
March
31, 2018
March
31, 2017
March
31, 2016
Revenue from Operations
(Net)
4,74,129.404,28,577.514,34,254.304,74,129.404,28,577.514,34,254.30
Other Income3,854.674,274.502,777.874,387.184,274.503,033.73
Total Income (Net)4,77,984.074,32,852.014,37,032.174,78,516.584,32,852.014,37,288.03
Total Expense (excluding
Finance Cost, Depreciation &
Amortisation, Tax and
Exceptional Items)
4,05,932.473,59,670.103,89,088.634,05,932.473,59,670.103,89,088.63
Finance Cost6,417.024,093.515,203.006,417.024,093.515,203.00
Depreciation & Amortisation10,141.739,585.139,522.1110,141.739,585.139,522.11
Exceptional Items
Profit before share of net
profit of investments
accounted for using equity
method and tax
55,492.8559,503.2733,218.4356,025.3659,503.2733,474.29
Share of net profit/ (loss) of
joint venture accounted for
using the equity method
780.67675.481,041.11
Profit Before Tax55,492.8559,503.2733,218.4356,806.0360,178.7534,515.40
Tax Expense4,564.672,439.4111,106.374,870.592,596.7711,348.91
Profit After Tax50,928.1857,063.8622,112.0651,935.4457,581.9823,166.49
Other Comprehensive Income(701.39)(513.88)(455.20)(689.56)(514.31)(456.74)
Total Comprehensive Income50,226.7956,549.9821,656.8651,245.8857,067.6722,709.75
Paid-up Equity Share Capital2,200.002,284.382,284.282,200.002,284.382,284.28
Other Equity2,34,841.162,05,985.501,56,430.452,39,369.472,09,494.721,59,421.98
Net worth2,28,749.682,00,110.121,50,437.152,31,168.992,01,510.341,51,319.68
Total debt1,50,682.251,77,041.1698,982.701,50,682.251,77,041.1698,982.70

 


Balrampur Chini Mills Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesTuesday, June 23, 2020
Date of publication of Public Announcement for the Buy-backThursday, June 25, 2020
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersFriday, July 03, 2020
Buy-back opens on / Buy-back Opening DateMonday, July 20, 2020
Buy-back closes on / Buy-back Closing DateFriday, July 31, 2020
Last date of verification by Registrar to Buy-backMonday, August 10, 2020
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-backMonday, August 10, 2020
Last date of settlement of bids on the Stock ExchangeMonday, August 10, 2020
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / BrokerTuesday, August 11, 2020
Last date of extinguishment of Equity Shares bought backTuesday, August 18, 2020


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, 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;
  • 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.

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 on March 31, 2020 are set forth below:

StandaloneConsolidated
ParametersPre Buy-
back
Post Buy-
back
Pre Buy-
back
Post Buy-
back
Net Worth (Rs. in Lakhs)2,14,429.901,96,429.902,16,339.671,98,339.67
Return on Net Worth (%)23.7525.9324.0126.19
Earnings Per Share (EPS) (Basic) (in Rs.)22.9824.0723.4424.54
Book Value per share (in Rs.)103.98108.93105.08110.08
Price / Earnings Multiple5.865.605.755.49
Total Debt / Equity Ratio0.660.710.650.71

Basis of Calculating Balrampur Chini Mills Buyback Price

The Buyback Offer Price being INR 180 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 180 per Equity Share represents, 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..


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,
Mumbai – 400 025, Maharashtra, India
Tel: +91 22 4325 2183
Fax: +91 22 4325 3000
E-mail: bcml.buyback@axiscap.in
Contact Person: Mr. Ankit Bhatia
SEBI Registration No.: INM000012029
Validity Period: Permanent


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 – Buyback PDF / Letter of Offer [Download]


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