Gandhi Special Tubes Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, we will discuss Gandhi Special Tubes Limited Buyback offer, buyback price, buyback size, Gandhi Special Tubes Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – Gandhi Special Tubes Share Price
Gandhi Special Tubes Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | September 21, 2021 |
| Closing Date | October 4, 2021 |
| Buyback Offer Amount | Rs. 42,16,38,800/- |
| Buyback No. of Shares | 7,66,616 |
| Face Value | Rs. 5 |
| Date of Buyback Approval | August 11, 2021 |
| Date of Public Announcement | August 11, 2021 |
| Buy Back Price | Rs. 550/- |
| Buy Back Premium | 24.96% |
| Date of Board Meeting | June 22, 2021 |
Gandhi Special Tubes Buyback Opening and Closing Date
The starting and closing date of this buyback are September 21, 2021 and October 4, 2021 .
Gandhi Special Tubes Buyback Cash Offer
The Cash Offer to Buy-back up to 7,66,616 fully paid-up equity shares of the Company of the face value of Rs. 5 each, representing 5.93% of the total number of equity shares.
Gandhi Special Tubes Buyback Record Date
The decided record date is August 31, 2021.
Gandhi Special Tubes Buyback Price
At a price of Rs.550 (Rupees Five Hundred and Fifty only) per Equity Share.
Gandhi Special Tubes Buyback Size
At a buyback price of Rs.550/- payable in cash for an aggregate consideration not exceeding Rs.42,16,38,800.
Gandhi Special Tubes Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
Gandhi Special Tubes Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 550 | 110000 | 11400 | 2.31% |
| 40% | 400 | 550 | 220000 | 22800 | 4.62% |
| 60% | 600 | 550 | 330000 | 34200 | 6.94% |
| 80% | 800 | 550 | 440000 | 45600 | 9.25% |
| 100% | 1000 | 550 | 550000 | 57000 | 11.56% |
Profit is calculated from 13th August 2021 share price i.e. Rs.493 per share of Gandhi Special Tubes Limited.
According to the above table, if a shareowner applies for 1000 shares of Gandhi Special Tubes limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.550 per share & receive Rs.11400 as profit amount & 2.31% 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.550 & receive a profit of Rs.34200 @ 6.94% profit percentage.
Gandhi Special Tubes Limited Buyback Overview
Gandhi Special Tubes Limited (“Gandhi Special Tubes” or the “Company”) an Indian company incorporated on December 29, 1945, is a leading global information technology, consulting, and business process services company. The Company has over 1,70,000 dedicated employees serving clients across six continents.
The name of the Company was changed from Western India Vegetable Products Limited to Gandhi Special Tubes Products Limited on June 7, 1977, and subsequently to Gandhi Special Tubes Limited on April 28, 1984. The Company has its registered office situated at Doddakannelli, Sarjapur Road, Bengaluru 560 035, India.
The Company shifted its registered office from the State of Maharashtra to the State of Karnataka on July 10, 1996. The Equity Shares of the Company were listed in the year 1995 on the NSE and an application for listing of equity shares was filed with BSE in the year 1946-47. The ADRs of the Company were listed on NYSE in the year 2000. The ISIN Number of the Company is INE075A01022.
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Company Finances – Gandhi Special Tubes Limited
The salient financial information of the Company as extracted from the audited standalone financial statements for the three years ended March 31, 2021, March 31, 2020, and March 31, 2019, are as under:
[In Rs. Lakhs]
| Particulars | 12 Months period ended March 31 (Audited) |
|||
| 30-June-21 | 31-Mar-21 | Mar-20 | 31-Mar-19 | |
| Total Income | 3,481.80 | 11,965.50 | 8,664.96 | 13,061.55 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 1,965.98 | 6,879.13 | 5,706.78 | 7,717.16 |
| Interest | – | – | – | – |
| Depreciation and amortization expenses | 77.31 | 329.74 | 355.48 | 369.05 |
| Profit before tax | 1,438.51 | 4,756.63 | 2,602.70 | 4,975.34 |
| Provision for tax (including Deferred Tax) |
331.44 | 1,141.40 | 465.42 | 1,112.21 |
| Profit /(Loss) after tax | 1,107.07 | 3,615.23 | 2,137.28 | 3,863.13 |
| Equity Share Capital | 645.93 | 645.93 | *645.93 | 690.93 |
| Reserves & Surplus | 17,355.23 | 16,244.29 | 13,706.87 | 19,154.52 |
| Networth | 18,001.16 | 16,890.22 | 14,352.80 | 19,845.45 |
| Total Debt (Excluding working capital loans) | – | – | – | – |
Gandhi Special Tubes Limited Buyback Dates
| Date of Board Meeting approving the Buyback | June 22, 2021 |
| Date of publication of Public Announcement for Buyback | August 11, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | August 31, 2021 |
| Buyback Opening date | September 21, 2021 |
| Buyback Closing date | October 4, 2021 |
| Last Date of verification of Tender Forms by the Registrar | October 8, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | October 12, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | October 13, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | October 13, 2021 |
| Last date of Extinguishment of Equity Shares | October 20, 2021 |
Details of Public Announcement
The Public Announcement dated Wednesday, August 11, 2021, was published in the following newspapers on Thursday, August 12, 2021, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of the results of a special resolution passed by the shareholders of the Company, i.e. Wednesday, August 11, 2021.
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Navshakti | Marathi | Mumbai |
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Necessity of Gandhi Special Tubes Limited Buyback
The Buyback is being undertaken for the following reasons:
- The Buyback will help the Company distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing the overall return to Equity Shareholders;
- Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, involves a reservation of up to 15% of the Buyback Size for Small Shareholders. The Company believes that this reservation of up to 15% for Small Shareholders would benefit a large number of the Company’s public shareholders, who would be classified as Small Shareholders for the purposes of the Buyback;
- The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company; and
- The Buyback gives the Eligible Shareholders the choice to either participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.
Impact of Gandhi Special Tubes Limited Buyback on the Company
The Buyback is not likely to cause any material impact on the profitability/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.
In the event that there is 100% acceptance of the Equity Shares tendered in the Buyback from Shareholders on a proportionate basis, the funds deployed by the Company towards the Buyback would be up to Rs. 42,16,38,800/- (Rupees Forty-Two Crores Sixteen Lakhs Thirty-Eight Thousand Eight Hundred only) excluding transaction costs, namely applicable taxes such as Buyback Tax, securities transaction tax, GST, stamp duty, filing fees, advisors fees, brokerage, public announcement expenses, printing, and dispatch expenses, and other incidental and related expenses. This shall impact the investment income earned by the Company, on account of the reduced amount of funds available for investments.
The Buyback is not expected to impact, in any manner, either the growth opportunities for the business of the Company or its cash requirement for business operations. Buyback is generally expected to contribute to the overall enhancement of shareholder value.
The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.
Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2021, are as under:
| Parameters (based on audited standalone financial statements for the year ended March 31, 2018) | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Lakhs) | 16,890.22 | 12,673.83 |
| Return on Net worth (%) | 21.40 | 28.53 |
| Earnings Per Share (Rs) | 27.98 | 29.75 |
| Book Value per Share (Rs) | 130.74 | 104.29 |
| P/E as per the latest audited standalone financial statements | 17.52 | 16.48 |
| Total Debt / Equity Ratio | NA | NA |
Basis of Calculating Gandhi Special Tubes Buyback Price
The Buyback Price has been arrived at after considering various factors such as
- the share price benchmarks on the NSE, the stock exchange where the maximum volume of trading in the Equity Shares is recorded,
- the net worth of the Company, and
- the impact on the earnings per Equity Share.
More on Gandhi Special Tubes Buyback Price Calculation
The Buyback Price represents:
(a) A premium of 88.26% and 88.06% to the volume-weighted average market price of the Equity Shares on BSE and NSE respectively, during the three months preceding Tuesday, June 15, 2021, being the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback; and
(b) A premium of 67.96% and 67.74% over the volume-weighted average market price of the equity shares on the BSE and NSE, respectively for a period of two (2) weeks preceding Tuesday, June 15, 2021, viz., the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback.
(c) A premium of 35.40% and 35.25% over the closing price of the Equity Shares on the Stock Exchanges as on Tuesday, June 15, 2021, being the date on which the Company intimated the Stock Exchanges of the date of the Meeting of the Board of Directors wherein proposal of the Buyback was considered
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be deployed by the Company for the Buyback would be up to Rs. 42,16,38,800/- (Rupees Forty-Two Crores Sixteen Lakhs Thirty-Eight Thousand Eight Hundred only) excluding transaction costs, namely applicable taxes such as Buyback tax, securities transaction tax, GST, stamp duty, filing fees, advisors fees, brokerage, public announcement expenses, printing, and dispatch expenses, and other incidental and related expenses.
The Company will be funding the Buyback with cash on hand that has been generated through internal accruals and/or by liquidating financial instruments held by the Company. The Company does not intend to raise debt for the purpose of the 22 Buyback. Thus, borrowed funds will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.
The 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 its subsequent audited financial statements.
Gandhi Special Tubes Limited – Manager to the Buyback
| Prime Securities Limited CIN: L67120MH1982PLC026724 1109/1110, Maker Chambers V, Nariman Point, Mumbai 400021, Maharashtra, India Tel: +91-22-61842525 / Fax: +91-22-24970777 Email: gstl_buyback@primesec.com SEBI Registration Number: MB/INM000000750 Validity Period: Permanent Registration Website: www.primesec.com Contact Person: Mr. Apurva Doshi / Mr. Nischay Saraf |
Gandhi Special Tubes Limited – Registrar to the Buyback
|
KFin Technologies Private Limited
CIN: U72400TG2017PTC117649 Selenium, Tower-B, Plot No 31–32, Gachibowli Financial District, Nanakramguda, Hyderabad 500032, India Tel: +91-40-67162222 / Fax: +91-40-23431551 E-mail: gstl.buyback2021@kfintech.com SEBI Registration Number: INR000000221 Validity Period: Permanent Registration Website: http://karisma.kfintech.com Contact Person: Mr. M. Murali Krishna |
Gandhi Special Tubes Limited Contact Details
| Company Contact Details |
| Gandhi Special Tubes Limited Regd. Office: 201-204, 2nd Floor, Plaza, 55, Hughes Road, Next to Dharam Palace, Mumbai 400007, Maharashtra, India, CIN: L27104MH1985PLC036004, Tel: +91-22-23634179 Website: www.gandhispecialtubes.com; Email:complianceofficer@gandhitubes.com Contact Person: Jitendra Khadye, Company Secretary & Compliance Officer |
FAQs of Gandhi Special Tubes Buyback
What is the Gandhi Special Tubes Buyback Period?
Gandhi Special Tubes 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. August 11, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. October 13, 2021.
What type of buyback is Gandhi Special Tubes Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The 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 Gandhi Special Tubes Buyback Offer?
Gandhi Special Tubes Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 7,66,616 Fully paid up Equity shares, adhering to the buyback price.
When Gandhi Special Tubes Buyback offer will start?
As per the released schedule, the Gandhi Special Tubes Buyback offer will start on September 21, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Gandhi Special Tubes Buyback at all times, we ensure you have access to the right data.
When is the closing date of Gandhi Special Tubes Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Gandhi Special Tubes Buyback. The buyback would stay open from September 21, 2021, and would close on October 4, 2021. The closing date is the last day on which the Buyback shall be open for the shareholders.
What is the offer price for Gandhi Special Tubes Buyback?
The amount at which the shares are taken back by the company is referred to as Gandhi Special Tubes Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.550, the price paid to each eligible shareholder.
What is the record date for Gandhi Special Tubes Buyback offer?
The record date of Gandhi Special Tubes Buyback is August 31, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, a letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Gandhi Special Tubes Buyback?
Gandhi Special Tubes Buyback Size is Rs. 42,16,38,800 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 Gandhi Special Tubes Buyback?
The objective of the Gandhi Special Tubes Buyback is to enhance the total return made by equity shareholders. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion. The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company
Who is the Registrar of Gandhi Special Tubes Buyback offer?
The designated registrar of Gandhi Special Tubes 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 of the Gandhi Special Tubes Buyback offer?
The manager of the Gandhi Special Tubes Buyback is Prime Securities Limited. Manager basically ensures that the company following up buyback strictly adheres to and is in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Gandhi Special Tubes’ 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 buy back 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 Gandhi Special Tubes 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 Gandhi Special Tubes Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Gandhi Special Tubes Buyback Dates.
What can be the Impact of Gandhi Special Tubes Buyback on the Company?
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. The debt-equity ratio following the Buyback, both on a standalone and consolidated basis, shall be compliant with the permissible limit of 2:1 prescribed by the Companies Act even if the response to the Buyback is to the extent of 100%.
Where to find complete details on Gandhi Special Tubes 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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