Garware Technical Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, We will discuss about Garware Technical Limited Buyback offer, buyback price, buyback size, Garware Technical 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 – Garware Technicsl Share Price
Garware Technical Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [●] |
| Closing Date | [●] |
| Buyback Offer Amount | Rs.72,99,99,300/- |
| Buyback No. of Shares | 3,17,391 |
| Face Value | Rs.10 |
| Date of Buyback Approval | November 27, 2020 |
| Date of Public Announcement | November 30, 2020 |
| Buy Back Price | Rs.2,300 |
| Buy Back Premium | 5.91% |
| Date of Board Meeting | November 27, 2020 |
Garware Technical Buyback Opening and Closing Date
The starting and closing date of this buyback is from OCTOBER 27, 2020 to NOVEMBER 10, 2020.
Garware Technical Buyback Cash Offer
Cash Offer to Buy-back up to 3,17,391 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 1.52% of the issued, subscribed and paid-up Equity Shares of the Company.
Garware Technical Buyback Record Date
The decided record date is DECEMBER 11, 2020.
Garware Technical Buyback Price
At a price of Rs.2,300 per Equity Share.
Garware Technical Buyback Size
At a buyback price of Rs.2,300 payable in cash for an aggregate maximum amount of Rs.72,99,99,300/-.
Garware Technical 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.
Garware Technical 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 | 2300 | 460000 | 23350 | 1.07% |
| 40% | 400 | 2300 | 920000 | 46700 | 2.14% |
| 60% | 600 | 2300 | 1380000 | 70050 | 3.21% |
| 80% | 800 | 2300 | 1840000 | 93400 | 4.28% |
| 100% | 1000 | 2300 | 2300000 | 116750 | 5.35% |
Profit is calculated from Dec 09, 2020 share price i.e. Rs.241.75 per share of Garware Technical Limited.
According to the above table, if a shareowner applies for 1000 shares of Garware Technical limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.2300 per share & receive Rs.23350 as profit amount & 1.07% 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.2300 & receive a profit of Rs.70050 @ 3.21% profit percentage.
Garware Technical Limited Buyback Overview
The Company was originally incorporated as a public limited company in the name of Garware-Wall Ropes Limited on April 1, 1976 under the Companies Act, 1956.
The Company is one of the leading manufacturers of technical textiles. It has four subsidiaries, one in Chile, one in the United States of America and two in India. The Company’s products are marketed across the globe.
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Company Finances – Garware Technical Ltd
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 | 44,969.71 | 1,01,385.25 | 1,03,879.84 | 90,334.59 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 35,385.02 | 76,718.25 | 82,583.47 | 72,500.99 |
| Interest | 450.02 | 1,120.59 | 1,372.29 | 997.69 |
| Depreciation | 1,003.15 | 1,926.22 | 1,724.04 | 1,534.76 |
| Profit before tax | 8,131.52 | 21,620.19 | 18,200.04 | 15,301.15 |
| Provision for tax (including Deferred Tax) |
1,779.96 | 3,820.18 | 5,638.79 | 4,789.39 |
| Profit /(Loss) after tax | 6,351.56 | 17,800.01 | 12,561.25 | 10,511.76 |
| Equity Share Capital | 2,093.56 | 2,188.21 | *2,188.21 | 2,188.21 |
| Reserve and Surplus | 81,368.04 | 75,104.16 | 62,760.05 | 51,408.14 |
| Networth | 83,461.49 | 77,292.36 | 64,948.26 | 53,596.35 |
| Total Debt | 15,406.86 | 10,037.70 | 10,797.27 | 13,838.83 |
Garware Technical Limited Buyback Dates
| Date of Board Meeting approving the Buyback | November 27, 2020 |
| Date of publication of Public Announcement for Buyback | November 30, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | December 11, 2020 |
| 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 Public Announcement was published on December 1, 2020 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All Editions |
| Prabhat | Marathi | Pune edition |
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Necessity of Garware Technical 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.
This Buyback may help in improving its 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 offer. Or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Impact of Garware Technical 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 amount available for investment.
The Company believes that the Buyback will not in any manner impair its ability to pursue growth opportunities or meet its cash requirements for business operations.
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) | 76,986.06 | 69,686.07 |
| Return on Net worth (%) | 23.12 | 25.54 |
| Earnings Per Share (Rs) | 85.02 | 86.33 |
| Book Value per Share (Rs) | 367.73 | 337.98 |
| Price / Earnings Ratio (P/E)** | 25.43 | 25.04 |
| Total Debt / Equity Ratio | 0.13 | 0.14 |
Basis of Calculating Garware Technical Buyback Price
The Equity Shares of the Company are proposed to be bought back at a price of INR 2,300per Equity Share.
The Buyback Offer Price is 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, and impact on other financial parameters and the possible impact of the Buyback on the earnings per Equity Share.
The Buyback Price represents
(a) premium of 14.75% and 15.89% over the volume weighted average market price of the Equity Shares on NSE and BSE, on November 23, 2020.
(b) premium of 11.14% and 12.62% over the volume weighted average market price of the Equity Shares on NSE and BSE, respectively, for two weeks preceding the Intimation Date.
(c) a premium of 6.20% and 6.39% over the closing price of the Equity Shares on NSE and BSE, respectively as on the Intimation Date.
(d) premium of 6.94% and 6.57% over the closing price of the Equity Shares on NSE and BSE, respectively as on November 20, 2020, being the day preceding the Intimation Date.
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Source of Funds for the Buyback
Assuming full acceptance of the Buyback of up to 3,17,391 Equity Shares at a price of INR 2,300/- per Equity Share would be INR 72,99,99,300/- excluding the Transaction Costs.
The funds required for implementation of the Buyback (including the Transaction Costs) will be sourced from current balances of cash and cash equivalents and liquid investments/ deposits of the Company.
The Company will transfer from its free reserves and/or securities premium account. And a sum equal to the nominal value of the Equity Shares bought back pursuant to the Buyback to the capital redemption reserve account. The details of such transfer will be disclosed in the subsequent audited financial statements of the Company.
This Company does not intend to raise additional debt in connection with the Buyback.
Garware Technical Limited – Manager to the Buyback
| AMBIT PRIVATE LIMITED Ambit House 449, Senapati Bapat Marg Lower Parel Mumbai, India – 400 013 Tel. No.: + 91 22 3982 1819 Fax No.: 91 22 3982 3020 Contact Person: Mr. Praveen Sangal / Mr. Miraj Sampat Email: gtfl.buyback@ambit.co Website: www.ambit.co SEBI Registration No.: INM000010585 Validity Period: Permanent CIN: U65923MH1997PTC109992 |
Garware Technical Ltd – Registrar to the Buyback
|
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai 400 083, Maharashtra, India Tel No.: +91 22 4918 6200 Fax No.: +91 22 4918 6195 Contact Person: Mr. Sumeet Deshpande Email: gtfl.buyback@linkintime.co.in Investor Grievance Id: gtfl.buyback@linkintime.co.in Website: www.linkintime.co.in SEBI Registration No.: INR000004058 Validity Period: Permanent CIN: U67190MH1999PTC118368 |
Garware Technical Ltd Contact Details
| Company Contact Details |
| GARWARE TECHNICAL FIBRES LIMITED CIN: L25209MH1976PLC018939 Registered Office: Plot No. 11, Block D-1, MIDC, Chinchwad, Pune – 411 019 Tel. No.: +91 020 2799 0224 | Fax. No.: +91 020 2799 0341 Contact Person: Mr. Sunil Agarwal, Company Secretary and Compliance Officer E-mail: secretarial@garwarefibres.com | Website: www.garwarefibres.com |
Garware Technical Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Garware Technical Ltd – Public Announcement
FAQs of Garware Technical Buyback
What is the Garware Technical Buyback Period?
Garware Technical 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. OCTOBER 27, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NOVEMBER 10, 2020.
What type of buyback is Garware Technical 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 Garware Technical Buyback Offer?
Garware Technical Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 3,17,391 Fully paid up Equity shares, adhering to the buyback price.
When Garware Technical Buyback offer will start?
As per the released schedule, the Garware Technical Buyback offer will start on OCTOBER 27, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Garware Technical Buyback at all times, we ensure you have access to the right data.
When is the closing date of Garware Technical Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Garware Technical Buyback. The buyback would close on NOVEMBER 10, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Garware Technical Buyback?
The amount at which the shares are taken back by the company is referred to as Garware Technical Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.2,300, the price paid to each eligible shareholder.
What is the record date for Garware Technical Buyback offer?
Record date of Garware Technical Buyback is DECEMBER 11, 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 Garware Technical Buyback?
Garware Technical Buyback Size is Rs.72,99,99,300 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 Garware Technical Buyback?
Objective of the Garware Technical 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 Garware Technical Buyback offer?
The designated registrar of Garware Technical 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 Garware Technical Buyback offer?
Manager to the Garware Technical Buyback is AMBIT PRIVATE 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 Garware Technical 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 Garware Technical 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 Garware Technical Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Garware Technical Buyback Dates.
What can be the Impact of Garware Technical 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 Garware Technical 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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