In this article, they will discuss about Cheviot Company Limited Buyback offer, buyback price, buyback size, Cheviot Company 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 – https://top10stockbroker.com/share-price/cheviot-share-price/

Cheviot Company Limited Buyback Details

Buyback TypeTender Offer
Opening DateOctober 22, 2020
Closing DateNovember 05, 2020
Buyback Offer AmountRs.18,00,00,000/-
Buyback No. of Shares2,00,000
Face ValueRs.10
Date of Buyback ApprovalSeptember 08, 2020
Date of Public AnnouncementSeptember 09, 2020
Buy Back PriceRs.900
Buy Back Premium50.33%
Date of Board MeetingSeptember 08, 2020

Cheviot Company Buyback Opening and Closing Date

The starting and closing date of this buyback is from October 22, 2020 to November 05, 2020.

Cheviot Company Buyback Cash Offer

Cash Offer to Buy-back up to 2,00,000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 3.09% of the issued, subscribed and paid-up Equity Shares of the Company.

Cheviot Company Buyback Record Date

The decided record date is SEPTEMBER 18, 2020.

Cheviot Company Buyback Price

At a price of Rs.900 per Equity Share.

Cheviot Company Buyback Size

At a buyback price of Rs.900 payable in cash for an aggregate maximum amount of Rs.18,00,00,000/-.

Cheviot Company 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.


Cheviot Company Limited 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%200900180000460006.87%
40%4009003600009200013.73%
60%60090054000013800020.60%
80%80090072000018400027.46%
100%100090090000023000034.33%

Profit is calculated from Oct 16, 2020 share price i.e. Rs.660 per share of Cheviot Company Limited.

According to the above table, if a shareowner applies for 1000 shares of Cheviot Company 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 Company Limited Buyback Overview

Cheviot Company Buyback

The Company manufactures jute products and jute fabrics with flexibility to cater to both domestic and international market. The Company is renowned for manufacturing superior quality technical jute fabrics and jute shopping bags for 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 Company Limited is recognized as a TWO STAR EXPORT HOUSE by the Government of India.


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Company Finances – Cheviot Company Limited

The brief audited consolidated financial information of the Company for the last three financial years are provided below:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
202020192018
Total Income46,776.2041,667.3940,010.16
Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items)40,124.2234,005.4432,086.74
Interest36.7072.2189.04
Depreciation430.58432.90436.77
Profit before tax6,184.707,156.847,397.61
Provision for tax
(including Deferred Tax)
1,372.582,139.041,990.00
Profit /(Loss) after tax4,812.125,017.805,407.61
Equity Share Capital647.04647.04431.48
Reserve and Surplus45,950.1943,871.1239,138.25
Networth46,597.2344,518.1639,569.73
Total Debt472.0985.46574.20

Cheviot Company Limited Buyback Dates

Date of Board Meeting approving the BuybackSeptember 08, 2020
Date of publication of Public Announcement for BuybackSeptember 10, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersSeptember 18, 2020
Buyback Opening dateOctober 22, 2020
Buyback Closing dateNovember 05, 2020
Last Date of verification of Tender Forms by the RegistrarNovember 11, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarNovember 13, 2020
*Last date of Settlement of Bids on the BSE LimitedNovember 17, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedNovember 17, 2020
*Last date of Extinguishment of Equity SharesNovember 24, 2020

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:

PublicationLanguageEdition
Business StandardEnglishAll Editions
Business StandardHindiAll Editions
AajkaalRegional (Bengali)Kolkata edition

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Necessity of Cheviot Company 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 Company 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. 18,00,00,000/- (Rupees Eighteen Crores only) (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-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in crores)46,597.2344,382.56
Return on Net worth (%)10.3310.84
Earnings Per Share (Rs)74.4176.79
Book Value per Share (Rs)720.55708.21
Price / Earnings Ratio (P/E)**9.268.97
Total Debt / Equity Ratio0.010.01

Basis of Calculating Cheviot Company 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. 900/- 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. 900/- represents a premium of 36.97% over the closing price of the Share on BSE as on 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 2,00,000 (Two Lakhs) Ordinary Shares at a price of Rs. 900/- (Rupees Nine Hundred Only) per Ordinary Share would not exceed Rs. 18,00,00,000/- (Rupees Eighteen Crores Only) (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 Company 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 Company 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 Company Limited Contact Details

Company Contact Details
Cheviot Company 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 Company Limited Buyback News

News 1 – Buyback PDF / Draft Letter of Offer [Download]

News 2 – Cheviot Company Ltd – Public Announcement


FAQs of Cheviot Company Buyback

What is the Cheviot Company Buyback Period?

Cheviot Company 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. October 22, 2020. 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 Company 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 Company Buyback Offer?

Cheviot Company Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 2,00,000 Fully paid up Equity shares, adhering to the buyback price.

When Cheviot Company Buyback offer will start?

As per the released schedule, the Cheviot Company Buyback offer will start on October 22, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Cheviot Company Buyback at all times, we ensure you have access to the right data.

When is the closing date of Cheviot Company Buyback?

For ease in access to the dates and related aspects, we have segregated the closing date of Cheviot Company Buyback. The buyback would close on November 05, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.

What is the offer price for Cheviot Company Buyback?

The amount at which the shares are taken back by the company is referred to as  Cheviot Company Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.900, the price paid to each eligible shareholder.

What is the record date for Cheviot Company Buyback offer?

Record date of Cheviot Company Buyback is SEPTEMBER 18, 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 Cheviot Company Buyback?

Cheviot Company Buyback Size is Rs.18,00,00,000 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 Company Buyback?

Objective of the Cheviot Company 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 Company Buyback offer?

The designated registrar of Cheviot Company 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 Company Buyback offer?

Manager to the Cheviot Company 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 Company 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 Company 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 Company Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Cheviot Company Buyback Dates.

What can be the Impact of Cheviot Company 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 Company 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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