Dalmia Bharat Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, they will discuss about Dalmia Bharat Limited Buyback offer, buyback price, buyback size, Dalmia Bharat Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time price of this Buyback, Click on this link – Dalmia Bharat Share Price
Dalmia Bharat Limited Buyback Details
| Buyback Type | Open Market |
| Opening Date | April 3, 2020 |
| Closing Date | October 1, 2020 |
| Buyback Offer Amount | Rs.500,00,00,000/- |
| Buyback No. of Shares | 71,42,857 |
| Face Value | Rs.2 |
| Date of Buyback Approval | March 21, 2020 |
| Date of Public Announcement | March 24, 2020 |
| Buy Back Price | Rs.700 |
| Buy Back Premium | 28.9% |
| Date of Board Meeting | March 21, 2020 |
Dalmia Bharat Buyback Opening and Closing Date
The starting and closing date of this buyback is from April 3, 2020 to October 1, 2020.
Dalmia Bharat Buyback Cash Offer
Cash Offer to Buy-back up to 71,42,857 fully paid-up equity shares of the Company of face value of Rs.2 each, representing 6.7% and 5.0% of the aggregate of the total paid-up capital and free reserves of the Company.
Dalmia Bharat Buyback Record Date
The decided record date is March 26, 2020.
Dalmia Bharat Buyback Price
At a price of Rs.700 per Equity Share.
Dalmia Bharat Buyback Size
At a buyback price of Rs.700 payable in cash for an aggregate maximum amount of Rs.500,00,00,000.
Dalmia Bharat 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.
Dalmia Bharat 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 | 700 | 140000 | 42700 | 8.78% |
| 40% | 400 | 700 | 280000 | 85400 | 17.55% |
| 60% | 600 | 700 | 420000 | 128100 | 26.33% |
| 80% | 800 | 700 | 560000 | 170800 | 35.11% |
| 100% | 1000 | 700 | 700000 | 213500 | 43.88% |
Profit is calculated from March 16, 2020 share price i.e. Rs.486.5 per share of Dalmia Bharat Limited.
According to the above table, if a shareowner applies for 1000 shares of Dalmia Bharat limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.700 per share & receive Rs.42700 as profit amount & 8.78% 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.700 & receive a profit of Rs.128100 @ 26.33% profit percentage.
Dalmia Bharat Limited Buyback Overview
The Company was originally incorporated as a public limited by the name of “Odisha Cement Limited” on July 12, 2013 under the Companies Act, 1956. The Company obtained its certificate of commencement of business on September 12, 2013. The name of the Company was changed to Dalmia Bharat Limited and a fresh certificate of incorporation consequent to change of name, was issued by the Registrar of Companies, Chennai on April 15, 2019.6.2
The Company is engaged in providing management services to its subsidiaries and group companies and holds cement assets through its subsidiaries who are engaged in the business of manufacturing of cement and has manufacturing plants in Southern, North Eastern and Eastern regions of India. The Equity Shares of the Company are listed on BSE and NSE.
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Company Finances – Dalmia Bharat Limited
The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the nine months period ended December 31, 2019 are provided below:
[In Rs. Crore]
| Particulars | For the nine months period ended December 31 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2019 | 2018 | 2017 | ||
| Total Income | 198 | 251 | 216 | 168 |
| Total Expenses (excluding Interest, depreciation) | 119 | 126 | 113 | 86 |
| Finance Cost | 3 | 2 | 5 | 21 |
| Depreciation and Amortization | 7 | 4 | 4 | 4 |
| Profit before tax | 69 | 119 | 94 | 57 |
| Provision for tax (including Deferred Tax) |
6 | 18 | 22 | 17 |
| Profit /(Loss) after tax | 63 | 101 | 72 | 40 |
| Equity Share Capital | 39 | 39 | – | – |
| Other Equity | 7,568 | 7,541 | 859 | 809 |
| Networth | 7,590 | 7,566 | 7,499 | 7,451 |
| Total Debt | – | 2 | 2 | 2 |
Dalmia Bharat Limited Buyback Dates
| Date of Board Meeting approving the Buyback | March 21, 2020 |
| Date of publication of Public Announcement for Buyback | March 24, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | [●] |
| Buyback Opening date | April 3, 2020 |
| Buyback Closing date | October 1, 2020 |
| 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
This public announcement (the “Public Announcement”) is made in relation to the Buyback of Equity Shares (as defined below) of Dalmia Bharat Limited (the “Company”) from the open market through stock exchange mechanism, in accordance with Regulation 16(iv)(b) and other applicable provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (including any statutory modification(s), amendment(s) or re-enactments from time to time) (the “Buyback Regulations”) along with the requisite disclosures as specified in Schedule IV to the Buyback Regulations.
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Necessity of Dalmia Bharat Limited Buyback
The Buyback is being undertaken by the Company after taking into account the strategic and operational cash requirements of the Company in the medium term and for returning surplus funds to the shareholders in an effective and efficient manner. The Buyback is being undertaken, inter-alia, for the following reasons:
- This Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;
- This Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value; and
- The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback, without additional investment.
Impact of Dalmia Bharat Limited Buyback on the Company
The Buyback is expected to enhance overall long-term shareholders’ value for continuing shareholders, without compromising on the future growth opportunities of the Company, as well as provide an exit opportunity to the public shareholders.
This Buyback is not likely to cause any material adverse impact on the earnings of the Company, except a reduction in the treasury income which the Company could have otherwise earned from investments in fixed deposits and mutual funds.
The Buyback will lead to reduction in existing Equity Shares and consequently, is expected to improve the ‘earnings per share’ and enhance return on equity, assuming that the Company would earn similar profits as in the past.
Consequent to the Buyback (which excludes participation by the promoters, members of the promoter group and persons in control of the Company) and based on the number of Equity Shares bought back by the Company from the shareholders including resident outside India, erstwhile overseas corporate bodies, foreign portfolio investors and non-resident Indian shareholders, the shareholding pattern of the Company would undergo a change;
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-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Crores) | ||
| Return on Net worth (%) | ||
| Earnings Per Share Basic (Rs) | ||
| Earnings Per Share Diluted (Rs) | ||
| Book Value per Share (Rs) | ||
| Total Debt / Equity Ratio |
Basis of Calculating Dalmia Bharat Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.700/- (Indian Rupees Seven Hundred Only) per Equity Share.
Maximum Buyback Price of Rs.700/- per Equity Share has been arrived at after considering various factors, including average of the weekly high and low of the closing price of the Equity Shares of the Company on the Stock Exchanges during the 2 weeks preceding the date of the Board Meeting, the net worth of the Company and the potential impact of the Buyback on the earnings per Equity Share and other similar ratios of the Company. The Maximum Buyback Price excludes the Transaction Costs.
The Buyback Price represents
- Premium of 27.8% and 28.9% over the closing prices on both NSE (i.e., INR 547.6) and BSE (i.e., INR 543.2), on March 17, 2020 i.e., one trading day prior to the date on which the notice of the Board Meeting to consider the Buyback proposal was intimated to NSE and BSE
- A premium of 33.1% and 33.8% over the closing prices on both NSE (i.e., INR 525.9) and BSE (i.e., INR 523.2), on March 18, 2020, i.e., the date on which the notice of the Board Meeting to consider the Buyback proposal was intimated to NSE and BSE.
- The Maximum Buyback Price represents a premium of 14.7% and 14.9% compared to the average of the weekly high and low of the closing prices of the Equity Shares on NSE and BSE, respectively, during the 2 (two) weeks preceding the date of the Board Meeting.
The ratio of the aggregate of secured and unsecured debts owed by the Company after the Buyback shall not be more than twice the paid-up capital and free reserves based on both audited standalone and consolidated financial statements
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Source of Funds for the Buyback
At the Maximum Buyback Price and for the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 71,42,857 Equity Shares. If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the Indicative Maximum Buyback Shares (assuming the Maximum Buyback Size is fully utilised by the Company) but will not exceed 25% of the total number of Equity Shares in the total paid-up equity capital of the Company.
The actual number of Equity Shares bought back will depend upon the actual price, excluding the Transaction Costs, paid for the Equity Shares bought back, and the aggregate consideration paid in the Buyback, subject to the Maximum Buyback Size.
Further, the Company shall utilize at least 50% of the Maximum Buyback Size i.e., INR 250,00,00,000/- towards the Buyback and the Company will accordingly purchase an indicative minimum of 35,71,429 Equity Shares, based on the Maximum Buyback Price.
If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the Indicative Maximum Buyback Shares (assuming the Maximum Buyback Size is fully utilised by the Company). However, the total number of Equity Shares to be bought back will not exceed 25% of the total number of Equity Shares in the total paid-up equity capital of the Company.
The amount required by the Company for the Buyback (including the cost of financing the Buyback and the Transaction Costs) will be funded out of the internal accruals of the Company including but not limited to free reserves of the Company, current balances of cash and cash equivalents and fund inflow through sale of current investments of the Company.
Dalmia Bharat Limited – Manager to the Buyback
| HDFC Bank Limited Investment Banking Group, Unit No. 401 & 402, 4th Floor Tower B Peninsula Business Park, Lower Parel, Mumbai – 400 013 Tel No.: +91 22 3395 8233; Fax No.: +91 22 3078 8584 Email: dbl.buyback@hdfcbank.com; Website: www.hdfcbank.com Investor Grievance E-mail: investor.redressal@hdfcbank.com SEBI Registration No.: INM000011252 Validity Period: Permanent (unless suspended or cancelled by SEBI) Contact Person: Ravi Sharma/ Harsh Thakkar CIN: L65920MH1994PLC080618 |
Dalmia Bharat Limited – Registrar to the Buyback
|
KFin Technologies Private Limited*
Selenium, Tower B, Plot No- 31 & 32, Financial District Nanakramguda, Serilingampally Hyderabad Rangareddi TG 500032 IN Tel No.: 040-6716 2222; Fax No.: 040-2343 1551 Contact Person: Sridhar Balmurli Email: sridhar.balamurli@kfintech.com; Website: www.kfintech.com Investor Grievance E-mail: einward.ris@kfintech.com; mailto:einward.ris@karvy.com SEBI Registration No.: INR000000221 Validity Period: Permanent (unless suspended or cancelled by SEBI) CIN: U72400TG2017PTC117649 |
Dalmia Bharat Limited Contact Details
| Company Contact Details |
| Dalmia Bharat Limited Corporate Identity Number (CIN): L14200TN2013PLC112346 Registered Office: Dalmiapuram Lalgudi, District Tiruchirappalli, Tamil Nadu, India – 621 651 Corporate Office: 11th and 12th Floor Hansalaya Building, 15 Barakhamba Road, New Delhi, India – 110 001 Tel. No.: +91 11 2346 5100 | Fax No.: +91 11 2331 3303 E-mail: corp.sec@dalmiabharat.com | Website: www.dalmiabharat.com Contact Person: Dr. Sanjeev Gemawat, Executive Director-Legal & Group Company Secretary |
Dalmia Bharat Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – Dalmia Bharat Ltd – Public Announcement
FAQs of Dalmia Bharat Buyback
What is the Dalmia Bharat Buyback Period?
Dalmia Bharat 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. April 3, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. October 1, 2020.
What type of buyback is Dalmia Bharat Buyback?
This company has chosen the route of Open Market to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Open Market Through Stock Exchanges.
What is the Dalmia Bharat Buyback Offer?
Dalmia Bharat Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 71,42,857 Fully paid up Equity shares, adhering to the buyback price.
When Dalmia Bharat Buyback offer will start?
As per the released schedule, the Dalmia Bharat Buyback offer will start on April 3, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Dalmia Bharat Buyback at all times, we ensure you have access to the right data.
When is the closing date of Dalmia Bharat Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Dalmia Bharat Buyback. The buyback would close on October 1, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Dalmia Bharat Buyback?
The amount at which the shares are taken back by the company is referred to as Dalmia Bharat Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.700, the price paid to each eligible shareholder.
What is the record date for Dalmia Bharat Buyback offer?
Record date of Dalmia Bharat Buyback is March 26, 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 Dalmia Bharat Buyback?
Dalmia Bharat Buyback Size is Rs.500,00,00,000 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 Dalmia Bharat Buyback?
Objective of the Dalmia Bharat 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 Dalmia Bharat Buyback offer?
The designated registrar of Dalmia Bharat Buyback is KFin Technologies 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 Dalmia Bharat Buyback offer?
Manager to the Dalmia Bharat Buyback is Dalmia Bharat 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 Dalmia Bharat 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 Dalmia Bharat 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 Dalmia Bharat Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Dalmia Bharat Buyback Dates.
What can be the Impact of Dalmia Bharat 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 Dalmia Bharat 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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