In this article, we will discuss the Bosch Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity and its impact on the company.
Bosch Limited Buyback Details
| Buyback Type | Tender Offer |
| Buyback Opening Date | February 06, 2019 |
| Buyback Closing Date | February 20, 2019 |
| Buyback Offer Amount | Rs. 21,56,91,00,000/- |
| Buyback No. of Shares | 10,27,100 |
| Face Value | Rs. 10/- |
| Date of Buyback Approval | November 05, 2018 |
| Date of Public Announcement | December 10, 2018 |
| Buy Back Price | Rs. 21,000/- |
| Buy Back Premium | 5.77% |
Bosch Buyback Opening and Closing Date
The starting and closing dates of this buyback are from February 06, 2019, to February 20, 2019.
Bosch Buyback Cash Offer
The Cash Offer to Buy-back up to 10,27,100 (Ten lakhs twenty-seven thousand one hundred only) fully paid-up equity shares of the Company of face value of Rs. 10 each.
Bosch Buyback Record Date
The decided record date is Friday, December 21, 2018.
Bosch Buyback Price
At a price of Rs. 21,000/- (Rupees Twenty-one thousand only) per Equity Share.
Bosch Buyback Size
The Buyback is for an aggregate amount not exceeding Rs. 21,56,91,00,000 (Rupees Two thousand one hundred fifty-six crores ninety-one lakhs only).
Bosch 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% | |||||
| 40% | |||||
| 60% | |||||
| 80% | |||||
| 100% |
Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of Bosch Limited.
According to the above table, if a share owner applies for 1000 shares of Bosch Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.56 per share & receive Rs.370 as profit amount & 0.68% 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.56 & receive a profit of Rs.1,110 @ 2.05% profit percentage.
Bosch Limited Buyback Overview
The Company has its presence across sectors such as mobility solutions, industrial technology, consumer goods, and building and energy technology. It manufactures and trades products as diverse as diesel and gasoline fuel injection systems, automotive aftermarket products, special purpose machines, packaging machines, electric power tools, security systems, and industrial and consumer energy products and solutions.
Headquartered in Bengaluru, the Company is the flagship company of the Bosch Group in India. The Company’s key manufacturing facilities are located at Bengaluru, Bidadi, Nashik, Jaipur, Naganathapura, Verna (Goa), Gangaikondan and Chennai.
Company Finances – Bosch Limited
The salient features of the financial information of the Company as extracted from the standalone audited financial statements of the Company for the last three financial years ended March 31, 2018, March 31, 2017 and March 31, 2016 and limited review financial results for the half year ended September 30, 2018 is set out below:
| Particulars | Half year ended (limited review) | Financial Year (audited) | ||
| April 1, 2018 to September 30, 2018 | April 1, 2017 to March 31, 2018 | April 1, 2016 to March 31, 2017 | April 01, 2015 to March 31, 2016 | |
| Total income | 6,66,743 | 12,38,402 | 11,85,995 | 11,04,552 |
| Total expenses (excluding interest and depreciation) | 5,18,885 | 9,77,904 | 9,28,220 | 8,56,375 |
| Interest | 1 | 330 | 2,715 | 1,293 |
| Depreciation | 18,894 | 46,720 | 45,623 | 38,644 |
| Profit before tax | 1,28,963 | 2,04,059 | 2,09,437 | 2,08,240 |
| Provision for tax (including deferred tax) | 43,866 | 66,987 | 72,438 | 57,725 |
| Profit / (loss) after tax | 85,097 | 1,37,072 | 1,74,112 | 1,53,134 |
| Equity share capital | 3,052 | 3,052 | 3,052 | 3,140 |
| Reserves and surplus* | 9,70,719 | 9,22,980 | 8,17,289 | 9,05,825 |
| Net worth* | 9,73,771 | 9,26,032 | 8,20,341 | 9,08,965 |
| Total debt (excluding working capital loans) | 0 | 0 | 0 | 4,999 |
Bosch Limited Buyback Dates
| Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares | Monday, November 05, 2018 |
| Date of publication of Public Announcement for the Buy-back | Wednesday, December 12, 2018 |
| Record Date for determining the Buy-back Entitlement and the Eligible Shareholders | Friday, December 21, 2018 |
| Buy-back opens on / Buy-back Opening Date | Wednesday, February 06, 2019 |
| Buy-back closes on / Buy-back Closing Date | Wednesday, February 20, 2019 |
| Last date of verification by Registrar to Buy-back | Thursday, February 28, 2019 |
| 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 | Thursday, February 28, 2019 |
| Last date of settlement of bids on the Stock Exchange | Friday, March 01, 2019 |
| Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker | Friday, March 01, 2019 |
| Last date of extinguishment of Equity Shares bought back | Friday, March 08, 2019 |
Necessity of Bosch Limited Buyback
The Company has accumulated free reserves and satisfactory liquidity as represented by its bank balances and marketable securities. The future generation of cash along with borrowings, if any, will support the resources required for investments and other operational requirements of the Company in the coming years. The Buyback provides an opportunity to the Company to return excess cash to the Equity Shareholders and to enhance overall Equity Shareholders’ value.
The Board at its meeting held on November 05, 2018, considered the accumulated free reserves as well as the cash liquidity reflected in the audited standalone financial accounts for the financial year ending March 31, 2018 and as such, decided to allocate a sum of up to Rs. 21,59,01,00,000 (Rupees Two Thousand One Hundred Fifty Nine Crores One Lakh only) for distribution to the Equity Shareholders of the Company through the Buyback.
Additionally, the Company’s management strives to increase Equity Shareholders’ value and the Buyback would inter-alia result in:
- Improving the return on equity, by reduction in the equity base, thereby leading to long term increase in 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.
- Providing an option to the Eligible Shareholders to either participate and receive cash payments in lieu of Equity Shares to be accepted under the Buyback, or 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 route as prescribed under the Buyback Regulations and the SEBI Circulars, would involve an allocation of 15% of the Equity Shares that the Company proposes to Buyback to Small Shareholders. The Company believes that this reservation of 15% for Small Shareholders would benefit a large number of public shareholders, who would be classified as “Small Shareholder” as per Regulation 2(i)(n) of the Buyback Regulations.
Impact of Bosch Limited Buyback on the Company
The Company believes that the Buyback is not likely to have 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.
Assuming response to the Buyback is to the extent of 100% from all the Eligible Shareholders up to their entitlement, the aggregate shareholding of the Promoters after the completion of the Buyback shall increase to 70.87% of the post-Buyback total paid-up equity share capital of the Company from 70.49% of the pre-Buyback total paidup equity share capital of the Company, and the aggregate shareholding of the public in the Company shall decrease to 29.13% of the post-Buyback total paid-up equity share capital of the Company from 29.51% of the pre-Buyback total paid-up equity share capital 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 Companies Act, even if the response to the Buyback is to the extent of 100% (full acceptance).
Salient financial parameters pursuant to the Buyback based on the audited standalone financial statements of the Company for the year ended March 31, 2018 and limited review financial results for the half year ended September 30, 2018 are as under:
| Parameter | As at and for the six month period ended September 30, 2018 | As at and for the year ended March 31, 2018 | ||
| Pre-Buyback | Post – Buyback | Pre-Buyback | Post – Buyback | |
| Net worth (Rs. in lakhs) | 9,73,771 | 7,58,080 | 9,26,032 | 7,10,341 |
| Return on Net worth (%) | 16.08% | 20.65% | 14.80% | 19.30% |
| Earnings per Equity Share (Rs.) | 278.82 | 288.53 | 449.11 | 464.75 |
| Book value per Equity Share (Rs.) | 3,190.52 | 2,570.32 | 3,034.11 | 2,408.45 |
| Price / earnings | 38.86 | 37.55 | 40.12 | 38.77 |
| Total debt / equity ratio | 0.00 | 0.00 | 0.00 | 0.00 |
Basis of Calculating Bosch Buyback Price
The Buyback Offer Price 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 where the Equity Shares are listed, the net worth of the Company, price earnings ratio and impact on other financial parameters and the possible impact of Buyback on the earnings per Equity Share.
More on Bosch Buyback Price Calculation
The Buyback Offer Price represents:
- Premium of 5.77% and 6.35% over the closing price of the Equity Shares on the BSE and NSE, respectively, as on October 31, 2018 (“Intimation Date”), being the date on which Company intimated the Stock Exchanges the intention to consider the proposal for buyback of shares at the Board Meeting scheduled on November 05, 2018; and
- Premium of 3.83% and 5.25% over the volume weighted average market price of the Equity Shares on BSE and on NSE, respectively, during the three months preceding the Intimation Date; and
- Premium of 7.36% and 9.13% over the volume weighted average market price of the Equity Shares on BSE and on NSE, respectively, during the six months preceding the Intimation Date.
Source of Funds for the Buyback
The Buyback shall be made out of the free reserves of the Company as on the date of the last audited financial statements of the Company i.e. March 31, 2018.
The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the capital redemption reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statements for the financial year 2018-2019.
The Company confirms that the funds for the Buyback will be made available from the current balances of cash and cash equivalents and/or internal accruals of the Company and funds borrowed from banks and financial institutions will not be used for the Buyback.
Bosch Limited – Manager to the Buyback
| Citigroup Global Markets India Private Limited 1202, 12th Floor, First International Financial Centre, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 098 Tel: +91 22 6175 9999; Fax: +91 22 6175 9961 Contact Person: Mr. Shreyans Gangwal E-mail: bosch.buybackoffer@citi.com SEBI Registration Number: INM000010718 Validity period: Permanent |
Bosch Limited – Registrar to the Buyback
| Karvy Fintech Private Limited (formerly known as KCPL Advisory Services Private Limited) Karvy Selenimum, Tower B, Plot Number 31 and 32 Financial District, Gachibowli, Hyderabad 500 032 Tel: +91 40 6716 2222; Fax: +91 40 2343 1551 Contact Person: Mr. M.Murali Krishna E-mail: bosch.buybackoffer@karvy.com SEBI Registration Number: INR000000221 Validity period: Permanent |
Bosch Limited Contact Details
| Company Contact Details |
| BOSCH LIMITED CIN: L85110KA1951PLC000761 Registered Office: Hosur Road, Adugodi, Bengaluru – 560 030 Contact Person: Mr. Rajesh Parte, Company Secretary & Compliance Officer Tel: +91-80-6752-1750; E-mail: investor@in.bosch.com Website: www.bosch.in |
Bosch Limited Buyback News
News 1 – Buyback PDF [Download]
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