Engineers India Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Aug 30, 2023In this article, we will discuss about Engineers India Limited Buyback offer, buyback price, buyback size, Engineers India 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 – Engineers India Share Price
Engineers India Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | JANUARY 22, 2021 |
| Closing Date | FEBRUARY 5, 2021 |
| Buyback Offer Amount | Rs.586.90 CRORE |
| Buyback No. of Shares | 6,98,69,047 |
| Face Value | Rs.5 |
| Date of Buyback Approval | November 12,2020 |
| Date of Public Announcement | December 21, 2020 |
| Buy Back Price | Rs.84 |
| Buy Back Premium | 20.45% |
| Date of Board Meeting | November 12,2020 |
Engineers India Buyback Opening and Closing Date
The starting and closing date of this buyback is from JANUARY 22, 2021 to FEBRUARY 5, 2021.
Engineers India Buyback Cash Offer
Cash Offer to Buy-back up to 6,98,69,047 fully paid-up equity shares of the Company of face value of Rs.5 each, representing 11.06% of the issued, subscribed and paid-up Equity Shares of the Company.
Engineers India Buyback Record Date
The decided record date is JANUARY 1, 2021.
Engineers India Buyback Price
At a price of Rs.84 per Equity Share.
Engineers India Buyback Size
At a buyback price of Rs.84 payable in cash for an aggregate maximum amount of Rs.586.90 CRORE.
Engineers India 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.
Engineers India 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 | 84 | 16800 | 1190 | 1.52% |
| 40% | 400 | 84 | 33600 | 2380 | 3.05% |
| 60% | 600 | 84 | 50400 | 3570 | 4.57% |
| 80% | 800 | 84 | 67200 | 4760 | 6.10% |
| 100% | 1000 | 84 | 84000 | 5950 | 7.62% |
Profit is calculated from Jan 18, 2021 share price i.e. Rs.78.05 per share of Engineers India Limited.
According to the above table, if a shareowner applies for 1000 shares of Engineers India limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.84 per share & receive Rs.1190 as profit amount & 1.52% 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.84 & receive a profit of Rs.3570 @ 4.57% profit percentage.
Engineers India Buyback Overview
The Company is an engineering consultancy company providing design, engineering, procurement, construction and integrated project management services.
It is principally focused on the oil and gas, petrochemicals, fertilizer and LNG industry segments in India and internationally. The Company also operates in other sectors including non-ferrous mining and metallurgy, waste water and infrastructure.
The Company is also a primary provider of engineering consultancy services for the GoI‟s energy security initiative under its Integrated Energy Policy for strategic crude storages.
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Engineers India Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Lakhs]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 1,254.16 | 3,461.09 | 2,669.42 | 1,967.05 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 1,052.58 | 2,760.01 | 2,078.32 | 1,374.55 |
| Interest | 0.89 | 1.74 | 1.23 | 0.57 |
| Depreciation | 11.29 | 23.83 | 22.36 | 23.83 |
| Profit before tax | 189.40 | 675.51 | 567.51 | 568.10 |
| Provision for tax (including Deferred Tax) |
48.64 | 245.27 | 197.44 | 190.23 |
| Profit /(Loss) after tax | 140.76 | 430.24 | 370.07 | 377.87 |
| Equity Share Capital | 315.96 | *315.96 | 315.96 | 315.96 |
| Reserve and Surplus | 2,064.43 | 2,029.50 | 1,959.89 | 1,951.91 |
| Networth | 2,380.39 | 2,345.46 | 2,275.85 | 2,267.87 |
| Total Debt | – | – | – | – |
Engineers India Limited Buyback Dates
| Date of Board Meeting approving the Buyback | November 12,2020 |
| Date of publication of Public Announcement for Buyback | December 22, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | January 1, 2021 |
| Buyback Opening date | January 22, 2021 |
| Buyback Closing date | February 5, 2021 |
| Last Date of verification of Tender Forms by the Registrar | February 10, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | February 12, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | February 15, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | February 15, 2021 |
| *Last date of Extinguishment of Equity Shares | February 22, 2021 |
Details of Public Announcement
This is to say, in accordance with Regulation 7(i) of the Buyback Regulations, the Public Announcement was published on December 22, 2020 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All Editions |
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Necessity of Engineers India Buyback
Share Buyback is the acquisition by a Company of its own shares. The objective is to return surplus cash to the members holding Equity Shares of the Company.
i. The Buyback will help the Company to return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members;
ii. The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve 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”;
iii. The Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders‟ value;
iv. The Buyback gives an option to the members 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 offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment; and
v. Optimizes the capital structure
Impact of Engineers India Buyback on the Company
They believe the Buyback is not likely to cause any material impact on the operating profitability/ earnings of the Company except a reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
They believe 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.
Buyback of Equity Shares will not result in a change in control or otherwise affect the existing management structure of the Company.
The debt-equity ratio post Buyback will be compliant with the permissible limit of 2:1 prescribed by Section 68 of the Companies Act, even if the response to the Buyback is to the extent of 100% (full acceptance).
The Company shall not raise further capital for a period of one year from the closure of Buyback Offer except in discharge of its subsisting obligations.
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) | 2,345.46 | 1,758.56 |
| Return on Net worth (%) | 18.34 | 24.47 |
| Earnings Per Share (Rs) | 6.81 | 7.66 |
| Book Value per Share (Rs) | 37.12 | 31.29 |
| Price / Earnings Ratio (P/E)** | 8.82 | 7.84 |
| Total Debt / Equity Ratio | * | – |
Basis of Calculating Engineers India Buyback Price
The Buyback price of Rs. 84/- per Equity Share has been arrived at after considering various factors such as the average closing prices of the Equity Shares of the Company on Stock Exchanges where the Equity Shares of the Company are listed, the net worth of the Company and the impact of the Buyback on the key financial ratios of the Company.
The Buyback Offer Price of Rs. 84/- per Equity Share represents
(i) a premium of 20.45% on BSE and 19.60% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE, respectively for 26 weeks preceding the Board Meeting date;
(ii) a premium of 22.95% on BSE and 23.96% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE, respectively for 2 weeks preceding the Board Meeting date;
(iii) a premium of 25.19% on BSE and 25.28% on NSE over the closing price of the Equity Shares on BSE & NSE, respectively as on the date of intimation to BSE & NSE for the Board Meeting to consider the proposal of the Buyback i.e. November 9, 2020.
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback of 6,98,69,047 Equity Shares at a price of Rs.84/- per Equity Share would be Rs.586.90 Crore.
The funds for the Buyback will be met out of internally generated cash resources of the Company. Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and the details of such transfer shall be disclosed in the its subsequent audited balance sheet.
The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Accordingly, borrowed funds will not be used for the Buyback. 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 operating 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.
Engineers India Limited – Manager to the Buyback
| IDBI CAPITAL MARKETS & SECURITIES LIMITED 6thFloor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai- 400 005 Tel:+91 22 2217 1700 Fax:+91 22 2215 1787 Contact Person: Mr. Sumit Singh Email: eil.buyback2020@idbicapital.com Website: www.idbicapital.com SEBI Registration No.: INM000010866 Validity Period: Permanent CIN: U65990MH1993GOI075578 |
Engineers India Ltd – Registrar to the Buyback
|
Alankit Assignments Limited
205-208, Anarkali Complex, Jhandewalan Extension, New Delhi – 110055 Tel No: +91-11-4254 1234 / 2354 Fax:+91-11-2355 2001 Contact Person: Mr. Virender Sharma Email: eilbuyback@alankit.com; Website: www.alankit.com SEBI Registration Number: INR000002532 Validity Period: Permanent CIN: U74210DL1991PLC042569 |
Engineers India Ltd Contact Details
| Company Contact Details |
| Engineers India LIMITED Registered Office: Engineers India House, 1, Bhikaji Cama Place, New Delhi – 110066 CIN: L74899DL1965GOI004352 Contact Person: Shri. Suvendu Kumar Padhi (Company Secretary) Tel: 011-26762121 | Fax: 011-26178210 | Email: company.secretary@eil.co.in | Website: www.engineersindia.com |
Engineers India Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Engineers India Ltd – Public Announcement
FAQs of Engineers India Buyback
What is the Engineers India Buyback Period?
Engineers India 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. JANUARY 22, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. FEBRUARY 5, 2021.
What type of buyback is Engineers India 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 Engineers India Buyback Offer?
Engineers India Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 6,98,69,047 Fully paid up Equity shares, adhering to the buyback price.
When Engineers India Buyback offer will start?
As per the released schedule, the Engineers India Buyback offer will start on JANUARY 22, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Engineers India Buyback at all times, we ensure you have access to the right data.
When is the closing date of Engineers India Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Engineers India Buyback. The buyback would close on FEBRUARY 5, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Engineers India Buyback?
The amount at which the shares are taken back by the company is referred to as Engineers India Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.84, the price paid to each eligible shareholder.
What is the record date for Engineers India Buyback offer?
Record date of Engineers India Buyback is JANUARY 1, 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 Engineers India Buyback?
Engineers India Buyback Size is Rs.586.90 CRORE 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 Engineers India Buyback?
Objective of the Engineers India 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 Engineers India Buyback offer?
The designated registrar of Engineers India Buyback is Alankit Assignments 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 Engineers India Buyback offer?
Manager to the Engineers India Buyback is IDBI CAPITAL MARKETS & SECURITIES 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 Engineers India 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 Engineers India 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 Engineers India Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Engineers India Buyback Dates.
What can be the Impact of Engineers India 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 Engineers India 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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