Cheviot Co Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, they will discuss about Cheviot Co Limited Buyback offer, buyback price, buyback size, Cheviot Co 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 – Cheviot Co Share Price
Cheviot Co Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [●] |
| Closing Date | [●] |
| Buyback Offer Amount | Rs.43,1250,000/- |
| Buyback No. of Shares | 2,50,000 |
| Face Value | Rs.10 |
| Date of Buyback Approval | 04 December 2021 |
| Date of Public Announcement | [●] |
| Buy Back Price | Rs.1725 |
| Buy Back Premium | 50.33% |
| Date of Board Meeting | 04 December 2021 |
Cheviot Co Buyback Opening and Closing Date
The starting and closing date of this buyback are from [●] to November [●].
Cheviot Co Buyback Cash Offer
Cash Offer to Buy-back up to 2,50,000 fully paid-up equity shares of the Company of the face value of Rs.10 each, representing 3.09% of the issued, subscribed, and paid-up Equity Shares of the Company.
Cheviot Co Buyback Record Date
The decided record date is 17 December 2021.
Cheviot Co Buyback Price
At a price of Rs.1725 per Equity Share.
Cheviot Co Buyback Size
At a buyback price of Rs.1725 payable in cash for an aggregate maximum amount of Rs.43,1250,000/-.
Cheviot Co Limited Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
Cheviot Co 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 | 900 | 180000 | 46000 | 6.87% |
| 40% | 400 | 900 | 360000 | 92000 | 13.73% |
| 60% | 600 | 900 | 540000 | 138000 | 20.60% |
| 80% | 800 | 900 | 720000 | 184000 | 27.46% |
| 100% | 1000 | 900 | 900000 | 230000 | 34.33% |
Profit is calculated from Oct 16, 2020 share price i.e. Rs.660 per share of Cheviot Co Limited.
According to the above table, if a shareowner applies for 1000 shares of Cheviot Co limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.900 per share & receive Rs.180000 as profit amount & 6.87% 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.900 & receive a profit of Rs.138000 @ 20.60% profit percentage.
Cheviot Co Limited Buyback Overview
The Company manufactures jute products and jute fabrics with the flexibility to cater to both domestic and international markets. The Company is renowned for manufacturing superior quality technical jute fabrics and jute shopping bags for the export market.
The manufacturing facility of the Company is located at 19, Mehta Road, Bade Kalinagar, Budge Budge – 700137 in the state of West Bengal, India.
The Company also has an Export Oriented Unit situated at Falta Special Economic Zone in the State of West Bengal, India. Cheviot Co Limited is recognized as a TWO STAR EXPORT HOUSE by the Government of India.
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Company Finances – Cheviot Co Limited
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Lakhs]
| Particulars | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2019 | 2018 | |
| Total Income | 46,776.20 | 41,667.39 | 40,010.16 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 40,124.22 | 34,005.44 | 32,086.74 |
| Interest | 36.70 | 72.21 | 89.04 |
| Depreciation | 430.58 | 432.90 | 436.77 |
| Profit before tax | 6,184.70 | 7,156.84 | 7,397.61 |
| Provision for tax (including Deferred Tax) |
1,372.58 | 2,139.04 | 1,990.00 |
| Profit /(Loss) after tax | 4,812.12 | 5,017.80 | 5,407.61 |
| Equity Share Capital | 647.04 | 647.04 | 431.48 |
| Reserve and Surplus | 45,950.19 | 43,871.12 | 39,138.25 |
| Networth | 46,597.23 | 44,518.16 | 39,569.73 |
| Total Debt | 472.09 | 85.46 | 574.20 |
Cheviot Co Limited Buyback Dates
| Date of Board Meeting approving the Buyback | [●] |
| Date of publication of Public Announcement for Buyback | [●] |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | 17 December 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
The Public Announcement was published on September 10, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All Editions |
| Aajkaal | Regional (Bengali) | Kolkata edition |
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Necessity of Cheviot Co Limited Buyback
The Company’s management strives to increase the shareholders’ value and the Buy-Back would result in the following benefits, amongst other things:
i) the Buy-Back will help the Company to return surplus cash to its shareholders holding Ordinary Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
ii) the Company believes that the 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 Buy-Back Regulations;
iii) the Buy-Back would help in improving return on equity by reduction in the share capital base and increasing shareholder value in the longer term;
iv) the Buy-Back gives an option to the shareholders holding Ordinary Shares of the Company, who can choose to participate and get cash in lieu of Ordinary Shares to be accepted under the Buy-Back offer or they may choose not to participate and be benefitted of a resultant increase in their percentage shareholding, post the Buy-Back offer, without additional investment;
v) the Buy-Back will help in achieving an optimal capital structure.
Impact of Cheviot Co Limited Buyback on the Company
We believe that the Buy-Back 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.
Assuming full response to the Buy-Back, the funds deployed by the Company towards the Buy-Back would not exceed Rs. 43,1250,000/- (excluding Company’s transaction costs viz. filing fees payable to SEBI, advisors/legal fees, newspaper publication expenses, brokerage, applicable taxes such as income tax, securities transaction tax, goods and service tax, etc., stamp duty and other incidental expenses).
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) | 46,597.23 | 44,382.56 |
| Return on Net worth (%) | 10.33 | 10.84 |
| Earnings Per Share (Rs) | 74.41 | 76.79 |
| Book Value per Share (Rs) | 720.55 | 708.21 |
| Price / Earnings Ratio (P/E)** | 9.26 | 8.97 |
| Total Debt / Equity Ratio | 0.01 | 0.01 |
Basis of Calculating Cheviot Co Buyback Price
The Ordinary Shares of the Company are proposed to be bought back at a price of Rs. 900/- (Rupees Nine Hundred Only) per Ordinary Share (“Buy-Back Offer Price”).
The Buy-Back Offer Price has been arrived at after considering various factors including, but not limited to the trends in the volume-weighted average prices and closing price of the Shares on the BSE where the shares of the Company are listed, the net worth of the Company, price-earnings ratio, impact on other financial parameters and the possible impact of Buy-Back on the earnings per share.
The Buy-Back Offer Price of Rs. 1725/- represents a premium of 50.33% to the volume-weighted average market price of the Share on BSE during the three months preceding September 3, 2020, being the date of intimation to the Stock Exchange for the Board Meeting to consider the proposal of the Buy-Back.
The Buy-Back Offer Price of Rs. 1725/- represents a premium of 36.97% over the closing price of the Share on BSE as of September 3, 2020, being the date on which the Company intimated BSE of the date of the Meeting of the Board of Directors wherein proposal of the Buy-Back was considered. The closing market price of the Shares as on the date of intimation to the BSE for the Board Meeting for considering the Buy-Back was Rs. 657.10/- on the BSE.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buy-Back of up to 2,50,000 Ordinary Shares at a price of Rs. 1725/- per Ordinary Share would not exceed Rs. 43,1250,000/-(excluding Company’s transaction costs viz. filing fees payable to SEBI, advisors/legal fees, newspaper publication expenses, brokerage, applicable taxes such as income tax, securities transaction tax, goods and service tax, etc., stamp duty and other incidental expenses).
The funds for the Buy-Back will be sourced from internal accruals. The Company has confirmed that the funds for the implementation of the proposed Buy-Back will be sourced out of the free reserves of the Company (i.e., current surplus, cash balances, internal accruals, retained earnings) and/or such other sources as may be permitted by the Buy-Back Regulations or the Act.
The Company shall transfer from its free reserves, a sum equal to the nominal value of the Ordinary Shares so bought back to the Capital Redemption Reserve Account and details of such transfer shall be disclosed in the subsequent audited financial statements. The funds borrowed, if any, from banks and financial institutions will not be used for the Buy-Back.
Cheviot Co Limited – Manager to the Buyback
| VC CORPORATE ADVISORS PRIVATE LIMITED CIN: U67120WB2005PTC106051 SEBI REGN No.: INM000011096 Validity of Registration: Permanent (Contact Person: Ms. Urvi Belani/ Mr. Premjeet Singh) 31, Ganesh Chandra Avenue, 2nd Floor, Suite No. –2C, Kolkata-700 013 Tel. No.: 033- 2225 3940 Fax No.: 033 2225 3941 Email Id: mail@vccorporate.com Website: www.vccorporate.com |
Cheviot Co Limited – Registrar to the Buyback
|
MAHESHWARI DATAMATICS PRIVATE LIMITED
CIN: U20221WB1982PTC034886 SEBI REGN No.: INR000000353 Validity of Registration: Permanent (Contact Person: Mr. S. Rajagopal) 23, R. N. Mukherjee Road, 5th Floor, Kolkata – 700 001 Tel. No.: 033 2248 2248 Fax No.: 033 2248 4787 Email Id: mdpldc@yahoo.com Website: www.mdpl.in |
Cheviot Co Limited Contact Details
| Company Contact Details |
| Cheviot Co Limited Corporate Identification Number: L65993WB1897PLC001409 Registered office and correspondence address: 9th Floor, Magma House, 24, Park Street, Kolkata-700 016 Contact Person: Mr. Aditya Banerjee, Company Secretary and Compliance Officer Telephone: +91 82320 87911/12/13; Fax: (033) 2249 7269/2217 2488 Email ID: cheviot@chevjute.com; investorservices@chevjute.com; Website: www.groupcheviot.net |
Cheviot Co Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – Cheviot Co Ltd – Public Announcement
FAQs of Cheviot Co Buyback
What is the Cheviot Co Buyback Period?
Cheviot Co 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. NA. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. November 05, 2020.
What type of buyback is Cheviot Co 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 Cheviot Co Buyback Offer?
Cheviot Co Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 2,50,000 Fully paid up Equity shares, adhering to the buyback price.
When Cheviot Co Buyback offer will start?
As per the released schedule, the Cheviot Co Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Cheviot Co Buyback at all times, we ensure you have access to the right data.
When is the closing date of Cheviot Co Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Cheviot Co Buyback. The buyback would close on NA. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Cheviot Co Buyback?
The amount at which the shares are taken back by the company is referred to as Cheviot Co Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.1725, the price paid to each eligible shareholder.
What is the record date for Cheviot Co Buyback offer?
Record date of Cheviot Co Buyback is 17 December 2021. 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 Cheviot Co Buyback?
Cheviot Co Buyback Size is Rs.43,1250,000 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 Cheviot Co Buyback?
Objective of the Cheviot Co 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 Cheviot Co Buyback offer?
The designated registrar of Cheviot Co Buyback is MAHESHWARI DATAMATICS 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 Cheviot Co Buyback offer?
Manager to the Cheviot Co Buyback is VC CORPORATE ADVISORS PRIVATE 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 Cheviot Co 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 Cheviot Co 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 Cheviot Co Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Cheviot Co Buyback Dates.
What can be the Impact of Cheviot Co 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 Cheviot Co 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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