Gandhi Special Tubes Buyback Review, Offer Details, Price, Dates, Size & more
In this article, we will discuss about Gandhi Special Tubes Limited Buyback offer, buyback price, buyback size, Gandhi Special Tubes Buyback record date, company financial, buyback necessity and its impact on company.
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Gandhi Special Tubes Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | 14 Aug 19 |
| Closing Date | 28 Aug 19 |
| Buyback Offer Amount | Rs. 105,00,00,00,000/- |
| Buyback No. of Shares | 32,30,76,923 |
| Face Value | Rs. 2 |
| Date of Buyback Approval | April 16, 2019 |
| Date of Public Announcement | June 5, 2019 |
| Buy Back Price | Rs. 325/- |
| Buy Back Premium | 22.16% |
| Date of Board Meeting | April 16, 2019 |
Gandhi Special Tubes Buyback Opening and Closing Date
The starting and closing date of this buyback is 14 Aug 19 and 28 Aug 19.
Gandhi Special Tubes Buyback Cash Offer
The Cash Offer to Buy-back up to 32,30,76,923 fully paid-up equity shares of the Company of face value of Rs. 2 each, representing 5.35% of the total number of equity shares.
Gandhi Special Tubes Buyback Record Date
The decided record date is Friday, June 21, 2019.
Gandhi Special Tubes Buyback Price
At a price of Rs.325 (Rupees Three Hundred and Twenty Five only) per Equity Share.
Gandhi Special Tubes Buyback Size
At a buyback price of Rs.325/- payable in cash for an aggregate consideration not exceeding Rs.105,00,00,00,000 (Rupees Ten Thousand and Five Hundred Crores Only).
Gandhi Special Tubes 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.
Gandhi Special Tubes 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 | 325 | 65000 | 5200 | 1.74% |
| 40% | 400 | 325 | 130000 | 10400 | 3.48% |
| 60% | 600 | 325 | 195000 | 15600 | 5.22% |
| 80% | 800 | 325 | 260000 | 20800 | 6.96% |
| 100% | 1000 | 325 | 325000 | 26000 | 8.70% |
Profit is calculated from 17th June 2019 share price i.e. Rs.299 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.325 per share & receive Rs.5200 as profit amount & 1.74% 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.325 & receive a profit of Rs.15600 @ 5.22% 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 (Code: Gandhi Special Tubes) and an application for listing of equity shares was filed with BSE in the year 1946-47 (Code: 507685). The ADRs of the Company were listed on NYSE (Code: WIT) 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, 2019, March 31, 2018 and March 31, 2017 are as under:
[In Rs. Lakhs]
| Particulars | 12 Months period ended March 31 (Audited) | ||
| 2019 | 2018 | 2017 | |
| Total Income | 50,69,237 | 47,18,960 | 48,61,777 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 39,36,271 | 35,75,615 | 36,49,078 |
| Interest | 52,496 | 38,430 | 39,223 |
| Depreciation and amortization expenses | 93,429 | 1,01,483 | 1,04,766 |
| Profit before tax | 9,87,041 | 10,03,432 | 10,68,710 |
| Provision for tax (including Deferred Tax) | 2,25,647 | 2,31,148 | 2,52,542 |
| Profit /(Loss) after tax | 7,61,394 | 7,72,284 | 8,16,168 |
| Equity Share Capital | 1,20,679 | 90,480 | 48,618 |
| Other Equity | – | – | – |
| Networth | 49,39,199 | 42,26,259 | 46,70,561 |
| Total Debt (Excluding working capital loans) | 2,200 | 7,242 | 1,14,626 |
Gandhi Special Tubes Limited Buyback Dates
| Date of Board Meeting approving the Buyback | April 16, 2019 |
| Date of publication of Public Announcement for Buyback | June 5, 2019 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | June 21, 2019 |
| 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
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated June 4, 2019 for the Buyback of Equity Shares published on June 5, 2019 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Hosa Digantha | Kannada | Bengaluru |
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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;
- The 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 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.
Assuming that the response to the Buyback is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement, the aggregate shareholding of the Promoter and Promoter Group post completion of the Buyback may increase from 73.83% to [●]%.
Also, if none of the public shareholders participate and only the Promoter and Promoter Group participate to the extent of the Buyback Entitlement, their shareholding may reduce from 73.83% to [●]% of the total equity share capital of the Company.
The debt-equity ratio following the Buyback, both on 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% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement.
Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2019 are as under:
| Parameters (based on audited standalone financial statements for year ended March 31, 2018) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Lakhs) | 49,39,199 | 38,89,199 |
| Return on Net worth (%) | 15.42% | 19.58% |
| Earnings Per Share (Rs) | 12.67 | 13.39 |
| Book Value per Share (Rs) | 81.86 | 68.10 |
| P/E as per the latest audited standalone financial statements | 22.17 | 20.98 |
| Total Debt / Equity Ratio | 0.10 | 0.13 |
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 premium of 22.16% over the volume weighted average market price of the Equity Shares on the NSE for the 60 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback and 24.15% over the volume weighted average market price of the Equity Shares on the NSE for the 10 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback.
The closing market price of the Equity Shares as on the date of intimation of the Board Meeting for considering the Buyback, being April 10, 2019, was Rs. 281.00 (Rupees Two Hundred and Eighty One only) on both NSE and BSE.
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Source of Funds for the Buyback
The funds for the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Borrowed funds will not be used for the Buyback.
The Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
Gandhi Special Tubes Limited – Manager to the Buyback
| JM Financial Limited 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India Tel.: +91 22 6630 3030 Fax: +91 22 6630 3330 Email: Gandhi Special Tubes.buyback2019@jmfl.com Website: www.jmfl.com Contact Person: Ms. Prachee Dhuri SEBI Regn. No.: INM000010361 Validity Period: Permanent Corporate Identification Number: L67120MH1986PLC038784 |
Gandhi Special Tubes Limited – Registrar to the Buyback
Karvy Fintech Private Limited Karvy Selenium, Tower- B, Plot No 31 & 32, Financial district, Nanakramguda, Gachibowli, Hyderabad, Telangana State, 500032, India. Tel: +91 40 67162222 Fax: +91 40 23431551 Email: Gandhi Special Tubes.buyback2019@karvy.com Website: https://karisma.karvy.com Contact Person: Mr. M. Murali Krishna SEBI Regn. No.: INR000000221 Validity Period: Permanent Corporate Identification Number: U72400TG2017PTC117649 |
Gandhi Special Tubes Limited Contact Details
| Company Contact Details |
| Gandhi Special Tubes Limited Registered Office and Correspondence Address: Doddakannelli, Sarjapur Road, Bengaluru – 560 035, India. Tel. No.: +91 80 2844 0011; Fax: +91 80 2844 0054 E-mail: corp-secretarial@Gandhi Special Tubes.com; Website: www.Gandhi Special Tubes.com Corporate Identification Number (CIN): L32102KA1945PLC020800 Contact Person: Mr. M Sanaulla Khan, Company Secretary; Tel. No.: +91 80 2844 0011 (ext: 226185); Fax: +91 80 2844 0054; E-mail: sanaulla.khan@Gandhi Special Tubes.com |
Gandhi Special Tubes Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Gandhi Special Tubes Ltd – Public Announcement
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 date of declaration of results of the postal ballot through remote e-voting i.e. June 5, 2019. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
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. 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 buyback 32,30,76,923 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 14 Aug 19. 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 the 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 14 Aug 19, and would close on 28 Aug 19. The closing date is the last day for 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.325, the price paid to each eligible shareholder.
What is the record date for Gandhi Special Tubes Buyback offer?
Record date of Gandhi Special Tubes Buyback is June 21, 2019. 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 Gandhi Special Tubes Buyback?
Gandhi Special Tubes Buyback Size is Rs. 105,00,00,00,000 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 Gandhi Special Tubes Buyback?
Objective of the Gandhi Special Tubes Buyback is to enhance the total return made by equity shareholders. Through buyback, 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 to Gandhi Special Tubes Buyback offer?
Designated registrar of Gandhi Special Tubes Buyback is Karvy Fintech 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 Gandhi Special Tubes Buyback offer?
Manager to the Gandhi Special Tubes Buyback is JM Financial 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 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 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 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 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 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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