Coral India Finance Buyback Review, Offer Details, Price, Dates, Size & more

In this article, they will discuss about Coral India Finance and Housing Limited Buyback offer, buyback price, buyback size, Coral India Finance Buyback record date, company financial, buyback necessity and its impact on company.

Coral India Finance Buyback Details

Buyback TypeTender Offer
Opening Date[●]
Closing Date[●]
Buyback Offer AmountRs.21,08,00,000
Buyback No. of Shares1,24,00,000
Face ValueRs.2
Date of Buyback ApprovalFebruary 14, 2020
Date of Public AnnouncementMarch 30, 2020
Buy Back PriceRs.17
Buy Back Premium41.67%
Date of Board MeetingFebruary 14, 2020

Coral India Finance Buyback Opening and Closing Date

The starting and closing date of this buyback is from [●] to [●].

Coral India Finance Buyback Cash Offer

Cash Offer to Buy-back up to 1,24,00,000 fully paid-up equity shares of the Company of face value of Rs.2 each, representing 24.86% of the total number of equity shares.

Coral India Finance Buyback Record Date

The decided record date is April 17, 2020.

Coral India Finance Buyback Price

At a price of Rs.17 per Equity Share.

Coral India Finance Buyback Size

At a buyback price of Rs.17 payable in cash for an aggregate maximum amount of Rs.21,08,00,000.

Coral India Finance 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.


Coral India Finance 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%2001734004002.67%
40%4001768008005.33%
60%600171020012008.00%
80%8001713600160010.67%
100%10001717000200013.33%

Profit is calculated from April 13, 2020 share price i.e. Rs.15.00 per share of Coral India Finance Limited.

According to the above table, if a shareowner applies for 1000 shares of Coral India Finance limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.17 per share & receive Rs.400 as profit amount & 2.67% 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.17 & receive a profit of Rs.1200 @ 8.00% profit percentage.


Coral India Finance Buyback Overview

Coral India Finance BuybackCoral India Finance and Housing Limited is one of the Housing Development Company in India with two segments viz. Finance & Construction. Coral India Finance and Housing Limited is a public listed Housing Development company in India with shares traded on the BSE & NSE Stock Exchanges.

Coral India Finance and Housing Limited group has developed projects spread across commercial complexes, residential developments. It has several ongoing projects. Each project bears a stamp of thoughtful solutions and highest quality. The company has specialists from India working on various aspects including design, landscaping, engineering and structural strength of each of the developments.


Company Finances – Coral India Finance and Housing Limited

The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the 6 months ended September 30, 2019 are provided below:

[In Rs. Lakhs]

ParticularsFor the period ended Sept 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income914.371454.682298.381355.64
Total Expenses (excluding Interest, depreciation)143.80416.73582.02325.62
Finance Cost0.161.940.500.33
Depreciation and Amortization6.3114.9218.4323.29
Profit before tax764.101021.101697.431006.40
Provision for tax
(including Deferred Tax)
173.58199.28348.72195.03
Profit /(Loss) after tax590.52821.821348.71811.37
Equity Share Capital997.58997.58*997.581041.74
Reserves11077.1111752.0513403.397407.06
Networth10969.3110499.069797.508488.80
Total Debt0.040.050.040.04

Coral India Finance Limited Buyback Dates

Date of Board Meeting approving the BuybackFebruary 14, 2020
Date of publication of Public Announcement for BuybackMarch 31, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersApril 17, 2020
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 dated March 30, 2020 was published on March 31, 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 i.e. March 28, 2020:

PublicationLanguageEdition
Financial ExpressEnglishAll Editions
JansattaHindiAll Editions
E –paper of Mumbai LakshadeepMarathiRegional Edition

Necessity of Coral India Finance Limited Buyback

The Buyback is being proposed by the Company to service the equity more effi ciently. Additionally, the Company’s management strives to increase equity shareholders value and the Buyback would result in amongst other things:

a) The Buyback is being done to return surplus funds, after taking into account the strategic and operational cash needs of the Company in the short to medium term;

b) Buyback may help in improving earnings per share, return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;

c) The Buyback gives an option to the equity shareholders, who can either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback; or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buyback, without additional investment;

d) Buyback, which is being implemented through the tender offer as prescribed under the Buyback Regulations, would involve minimum reservation of 15% for Small Shareholders and allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, 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.


Impact of Coral India Finance Limited Buyback on the Company

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)10499.067957.75
Return on Net worth (%)7.8310.33
Earnings Per Share Basic (Rs)1.652.19
Book Value per Share (Rs)21.0521.23
Total Debt / Equity Ratio0.050.06

Basis of Calculating Coral India Finance Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.17/- (Rupees Seventeen only) per Equity Share.

The Buyback Price of Rs.17/- (Rupees Seventeen only) per Equity Share has been arrived at after considering various factors including, but not limited to, the trends in the volume weighted average price and closing price of the Equity Shares on BSE and NSE.

The Buyback Price represents

  • Premium of 41.67% and 40.50% over the closing price of the Equity Shares on BSE and NSE, respectively, as on Monday, February 10, 2020 being the date on which the Company intimated to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
  • Premium of 57.95% and 58.94% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during the two weeks preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
  • A Premium of 52.17% and 51.44% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during the 30 trading days preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
  • Premium of 52.94% and 52.76% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during the 60 trading days preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.

Source of Funds for the Buyback

The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback Regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.

The funds for the Buyback will be sourced from the cash and cash equivalents and/or accumulated internal accruals and no borrowings are made to discharge the Buyback obligations. However, if required, the Company may borrow funds in the ordinary course of its business.

This Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.

The Company shall transfer from its free reserves a sum equal to the nominal value of the equity shares purchased through the Buyback to the Capital Redemption Reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statement.


Coral India Finance Limited – Manager to the Buyback

INGA VENTURES PRIVATE LIMITED
1229, Hubtown Solaris, N.S. Phadke Marg,
Opp. Telli Galli, Andheri (East), Mumbai 400069
Tel. No.: 022 26816003, Fax No.: 022 26816020;
Contact Person: Kavita Shah;
Email: kavita@ingaventures.com;
Website: www.ingaventures.com;
SEBI Registration No: INM000012698;
Validity: Permanent
CIN: U67100MH2018PTC318359

Coral India Finance Limited – Registrar to the Buyback

LINK INTIME INDIA PRIVATE LIMITED
C-101, 247 Park, L.B.S. Marg, Vikhroli (W), Mumbai – 400 083
Tel. No.: +91 22 49186200; Fax: +91 22 49186195;
Contact person: Sumeet Deshpande;
Email: coralindia.buyback@linkintime.co.in
Website: www.linkintime.co.in;
SEBI Registration Number: INR000004058;
CIN: U67190MH1999PTC118368.

Coral India Finance Limited Contact Details

Company Contact Details
CORAL INDIA FINANCE AND HOUSING LIMITED
Corporate Identity Number (CIN): L67190MH1995PLC084306
Regd Offi ce: 4th Floor, Dalamal House, J. B. Marg,
Nariman Point, Mumbai – 400 021;
Tel. No.: 022-22853910/11; Fax: +022-22825752;
Email: cs@coralhousing.in; Website: www.coralhousing.in
Contact Person: Ms. Riya Shah, Company Secretary
Email: buyback@coralhousing.in

 


Coral India Finance Limited Buyback News

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

News 2 – Coral India Finance Ltd – Public Announcement


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