Cosmo Films Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, they will discuss about Cosmo Films Limited Buyback offer, buyback price, buyback size, Cosmo Films 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 – Cosmo Films Share Price
Cosmo Films Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | November 27, 2020 |
| Closing Date | December 11, 2020 |
| Buyback Offer Amount | Rs.73,00,00,000 |
| Buyback No. of Shares | 12,67,361 |
| Face Value | Rs.10 |
| Date of Buyback Approval | October 26, 2020 |
| Date of Public Announcement | October 28, 2020 |
| Buy Back Price | Rs.576 |
| Buy Back Premium | 6.52% |
| Date of Board Meeting | October 26, 2020 |
Cosmo Films Buyback Opening and Closing Date
The starting and closing date of this buyback is from November 27, 2020 to December 11, 2020.
Cosmo Films Buyback Cash Offer
Cash Offer to Buy-back up to 12,67,361 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 6.52% of the issued, subscribed and paid-up Equity Shares of the Company.
Cosmo Films Buyback Record Date
The decided record date is NOVEMBER 9, 2020.
Cosmo Films Buyback Price
At a price of Rs.576 per Equity Share.
Cosmo Films Buyback Size
At a buyback price of Rs.576 payable in cash for an aggregate maximum amount of Rs.73,00,00,000.
Cosmo Films 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.
Cosmo Films 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 | 576 | 115200 | 25000 | 5.54% |
| 40% | 400 | 576 | 230400 | 50000 | 11.09% |
| 60% | 600 | 576 | 345600 | 75000 | 16.63% |
| 80% | 800 | 576 | 460800 | 100000 | 22.17% |
| 100% | 1000 | 576 | 576000 | 125000 | 27.72% |
Profit is calculated from Nov 20, 2020 share price i.e. Rs.451 per share of Cosmo Films Limited.
According to the above table, if a shareowner applies for 1000 shares of Cosmo Films limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.576 per share & receive Rs.25000 as profit amount & 1.92% 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.5.54 & receive a profit of Rs.75000 @ 16.63% profit percentage.
Cosmo Films Limited Buyback Overview
The Company was incorporated on October 7, 1976 pursuant to certificate of Incorporation issued by Registrar of Companies, Delhi & Haryana (“RoC”) dated October 7, 1976 under the Companies Act, 1956.
Thereafter, the Company received a certificate of commencement of business from the RoC on January 27, 1977. The registered and corporate office of the Company is located at 1008, DLF Tower-A, Jasola District Centre, New Delhi – 110 025, India.
The Company is engaged in the business of manufacturer, importer, exporter and dealer of packaging, lamination and labeling films and synthetic paper.
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Company Finances – Cosmo Films Ltd
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Crores]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 982.67 | 2,052.03 | 2,061.95 | 1,813.91 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 797.31 | 1,789.61 | 1,892.76 | 1,632.82 |
| Finance Cost | 22.58 | 49.39 | 51.67 | 50.12 |
| Depreciation | 26.22 | 49.57 | 48.03 | 45.50 |
| Profit before tax | 136.56 | 163.46 | 69.49 | 85.47 |
| Provision for tax (including Deferred Tax) |
39.97 | 49.42 | 11.11 | 0.58 |
| Profit /(Loss) after tax | 96.59 | 114.04 | 58.38 | 84.89 |
| Equity Share Capital | 19.44 | 19.44 | *19.44 | 19.44 |
| Reserve and Surplus | 829.40 | 725.99 | 675.85 | 617.64 |
| Networth | 850.59 | 753.59 | 688.62 | 644.16 |
| Total Debt | 773.01 | 720.88 | 741.84 | 710.68 |
Cosmo Films Limited Buyback Dates
| Date of Board Meeting approving the Buyback | October 26, 2020 |
| Date of publication of Public Announcement for Buyback | October 28, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | November 9, 2020 |
| Buyback Opening date | November 27, 2020 |
| Buyback Closing date | December 11, 2020 |
| Last Date of verification of Tender Forms by the Registrar | December 16, 2020 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | December 21, 2020 |
| *Last date of Settlement of Bids on the BSE Limited | December 22, 2020 |
| Last date of return of unaccepted Equity Shares by BSE Limited | December 22, 2020 |
| *Last date of Extinguishment of Equity Shares | December 29, 2020 |
Details of Public Announcement
The Public Announcement was published on October 28, 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 |
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Necessity of Cosmo Films Limited Buyback
The Buyback is being proposed by the Company to return surplus funds to the equity shareholder/beneficial owner of the Equity Shares (“Equity Shareholders”), which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, efficient and cost effective manner.
The Buyback is generally expected to improve financial ratios like earnings per share, return on capital employed, return on equity, calculated on the basis of financial statements, by reduction in the equity basis of the Company, thereby leading to long term increase in shareholders’ value;
This Buyback 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;
The Buyback gives an option to the Equity Shareholders to 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 Buyback, without additional investment.
Impact of Cosmo Films Limited Buyback on the Company
The Company believes that the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company except a reduction in the current investments.
Assuming there is full response to the Buyback, the funds deployed by the Company towards the Buyback would be INR 73,00,00,000 (Indian Rupees Seventy Three Crores only) excluding the Transaction Costs.
The Buyback will not in any manner impair its ability to pursue growth opportunities or meet its cash requirements for business operations. This Buyback is likely to result in improvement in EPS and enhance the return on equity.
The Buyback is not expected to result in a change in control or otherwise affect the existing management structure 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 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) | 753.59 | 680.59 |
| Return on Net worth (%) | 15.13 | 16.76 |
| Earnings Per Share (Rs) | 59.50 | 63.72 |
| Book Value per Share (Rs) | 387.65 | 374.51 |
| Price / Earnings Ratio (P/E)** | 7.93 | 7.41 |
| Total Debt / Equity Ratio | 0.96 | 1.06 |
Basis of Calculating Cosmo Films Buyback Price
The Buyback Offer Price being INR 576 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.
The Buyback Price represents
a. Premium of 25.31% and 25.37% over the closing price of the Equity Shares on the BSE and NSE, respectively, as on October 19, 2020 (“Intimation Date”), being the date on which Company intimated the Stock Exchanges of its intention to consider the proposal for buyback of shares at the Board Meeting held on October 26, 2020; and
b. Premium of 37.66% and 37.65% 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.
c. Premium of 38.68% and 38.65% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, for two weeks preceding the Intimation Date.
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Source of Funds for the Buyback
The funds required for implementation of the Buyback 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.
Cosmo Films Limited – Manager to the Buyback
| Anand Rathi Advisors Limited 10th Floor, Trade D Tower, Kamla City, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013 Tel: +91-22-6626 6666; Fax: +91-22-6626 6544 Website: www.rathi.com; Email: cosmo.buyback@rathi.com Investor grievance e-mail: grievance.ecm@rathi.com Contact Person: Astha Daga / Adit Gala SEBI Registration No.: INM000010478 |
Cosmo Films Ltd – Registrar to the Buyback
|
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400 083 Tel No.: +91 22 4918 6200 Fax No.: +91 22 4918 6195; Website: www.linkintime.co.in Email: cosmofilms.buyback@linkintime.co.in; Investor grievance e-mail: cosmofilms.buyback@linkintime.co.in Contact Person: Sumeet Deshpande SEBI Registration No.: INR000004058 |
Cosmo Films Ltd Contact Details
| Company Contact Details |
| COSMO FILMS LIMITED CIN: L92114DL1976PLC008355 Registered and Corporate Office: 1008, DLF Tower-A, Jasola District Centre, New Delhi – 110 025, India. Tel. No.: +91-11-49494949 | Fax No.: +91-11-49494950 E-mail: investor.relations@cosmofilms.com | Website: www.cosmofilms.com Company Secretary and Compliance Officer: Ms. Jyoti Dixit |
Cosmo Films Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Cosmo Films Ltd – Public Announcement
FAQs of Cosmo Films Buyback
What is the Cosmo Films Buyback Period?
Cosmo Films 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. November 27, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. December 11, 2020.
What type of buyback is Cosmo Films 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 Cosmo Films Buyback Offer?
Cosmo Films Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 12,67,361 Fully paid up Equity shares, adhering to the buyback price.
When Cosmo Films Buyback offer will start?
As per the released schedule, the Cosmo Films Buyback offer will start on November 27, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Cosmo Films Buyback at all times, we ensure you have access to the right data.
When is the closing date of Cosmo Films Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Cosmo Films Buyback. The buyback would close on December 11, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Cosmo Films Buyback?
The amount at which the shares are taken back by the company is referred to as Cosmo Films Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.576, the price paid to each eligible shareholder.
What is the record date for Cosmo Films Buyback offer?
Record date of Cosmo Films Buyback is NOVEMBER 9, 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 Cosmo Films Buyback?
Cosmo Films Buyback Size is Rs.73,00,00,000 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 Cosmo Films Buyback?
Objective of the Cosmo Films 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 Cosmo Films Buyback offer?
The designated registrar of Cosmo Films Buyback is Link Intime India 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 Cosmo Films Buyback offer?
Manager to the Cosmo Films Buyback is Anand Rathi Advisors 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 Cosmo Films 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 Cosmo Films 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 Cosmo Films Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Cosmo Films Buyback Dates.
What can be the Impact of Cosmo Films 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 Cosmo Films 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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