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GeeCee Ventures Limited Buyback Review, Offer Details, Price, Dates, Size & more

In this article, we will discuss GeeCee Ventures Limited Buyback offer, buyback price, buyback size, GeeCee Ventures Buyback record date, company financial, buyback necessity and its impact on the company.

GeeCee Ventures Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening DateJune 26, 2019
Buyback Closing DateJuly 9, 2019
Buyback Offer AmountRs. 11,00,00,000/-
Buyback No. of Shares 8,14,815
Face ValueRs. 10
Date of Buyback ApprovalMay 22, 2019
Date of Public AnnouncementMay 23, 2019
Buy Back PriceRs. 135/-
Buy Back Premium14.84%
Date of Board MeetingMay 22, 2019

GeeCee Ventures Buyback Opening and Closing Date

The starting and closing date of this buyback is NA.

GeeCee Ventures Buyback Cash Offer

The Cash Offer to Buy-back up to 8,14,815 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 3.75% of the total number of equity shares.

GeeCee Ventures Buyback Record Date

The decided record date is Friday, June 7, 2019.

GeeCee Ventures Buyback Price

At a price of Rs.135 (Rupees One Hundred and Thirty Five only) per Equity Share.

GeeCee Ventures Buyback Size

At a buyback price of Rs.135 /- payable in cash for an aggregate consideration not exceeding Rs.1,100 lakhs (Rupees One Thousand and One Hundred Lakh Only).

GeeCee Ventures 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.


GeeCee Ventures Limited Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%2001352700050004.55%
40%40013554000100009.09%
60%600135810001500013.64%
80%8001351080002000018.18%
100%10001351350002500022.73%

Profit is calculated from 21st June 2019 share price i.e. Rs.110 per share of GeeCee Ventures Limited.

According to the above table, if a shareowner applies for 1000 shares of GeeCee Ventures limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.135 per share & receive Rs.5000 as profit amount & 4.55% 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.135 & receive a profit of Rs.15000 @ 13.64% profit percentage.


GeeCee Ventures Limited Buyback Overview

The Company was primarily into the business of manufacturing and marketing of specialty chemicals, catering to both Page 24 of 55 the domestic and exports customers in the agrochemical, paints and coatings, dyes and flavour & fragrance industries.

In the year 2009, as a part of diversification strategy adopted by the Company, it sold its main manufacturing unit at Nagda, Madhya Pradesh to Lanxess (India) Private Limited, a subsidiary of German multinational Lanxess AG. Presently, the Company operates in three (3) business segments viz. Real Estate; Wind Power Generation; and Investment and Financing.


Company Finances – GeeCee Ventures Limited

The salient features of the financial information of the Company as extracted from the standalone audited financial statements of the Company for the last three (3) financial years ended March 31, 2019, March 31, 2018 and March 31, 2017 are set out below:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
201920182017
Revenue from operations
Other Income815.09373.44NA
Total Income15,296.4018,561.299,533.46
Total Expenses (excluding finance cost, depreciation & amortization)10,736.3915,316.426,297.59
Interest2.571.7212.44
Depreciation and amortization expenses147.15140.71149.57
Profit before tax4,410.283,102.443,073.86
Provision for tax
(including Deferred Tax)
900.4594.32270.23
Profit /(Loss) after tax3,509.833,008.122,803.63
Equity Share Capital2,172.652,172.652,172.65
Other Equity
Networth41,024.5637,770.7835,008.25
Total Debt (Excluding working capital loans)

GeeCee Ventures Limited Buyback Dates

Date of Board Meeting approving the BuybackMay 22, 2019
Date of publication of Public Announcement for BuybackMay 24, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersJune 7, 2019
Buyback Opening date
June 26, 2019
Buyback Closing date
July 9, 2019
Last Date of verification of Tender Forms by the Registrar
July 17, 2019
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar
July 17, 2019
Last date of Settlement of Bids on the BSE Limited
July 18, 2019
Last date of return of unaccepted Equity Shares by BSE Limited
July 18, 2019
Last date of Extinguishment of Equity Shares
July 25, 2019

Details of Public Announcement

The Public Announcement dated May 23, 2019 was published on May 24, 2019 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two (2) working days from the date of passing the board resolution approving the Buyback:

PublicationLanguageEdition
Financial ExpressEnglishAll editions
JansattaHindiAll editions
Mumbai LakshadeepMarathiMumbai

Necessity of GeeCee Ventures Limited Buyback

Buyback is an efficient form of distributing surplus cash to the Members holding Equity Shares of the Company, inter-alia, for the following reasons:

  • The Buyback will help in improving earnings per share and return on equity by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • The Buyback gives an option to the equity shareholders, who can either choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback; or choose not to participate and enjoy a resultant increase in their percentage shareholding, as adjusted for the Buyback, without additional investment;
  • The Buyback, which is being implemented through the Tender Offer as prescribed under the Buyback Regulations, would involve minimum reservation of 15% for small shareholders and allocation of higher of number of Equity Shares as per their entitlement or 15% of the number of Equity 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” as per Regulation 2(i) (n) of the Buyback Regulations;
  • The Buyback will help in achieving optimal capital structure.

Impact of GeeCee Ventures 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 response to the Buyback is to the extent of 100% (full acceptance) from all the Equity Shareholders upto their entitlement, the aggregate shareholding of the Promoters / Promoter Group / Persons in Control, post Buyback will [increase / decrease] to [●]% from current 67.71% shareholding pre Buyback, and the aggregate shareholding of the public in the Company shall [increase / decrease] to [●]% post Buyback from current 32.29%shareholding pre Buyback.

The Company confirms that as required under section 68(2)(d) of the Companies Act, 2013 the ratio of the aggregate of secured and unsecured debts owed by the Company will be not more than twice the paid-up share capital and free reserves as on March 31, 2019 after the Buyback.

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-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)41,024.5639,924.56
Return on Net worth (%)8.56%8.79%
Earnings Per Share (Rs)16.1516.78
Book Value per Share (Rs)188.82190.92
P/E as per the latest audited standalone financial statements7.537.25
Total Debt / Equity Ratio00

Basis of Calculating GeeCee Ventures Buyback Price

The Buyback price of Rs135 (Rupees One Hundred and Thirty Five only) per equity share has been arrived at after considering various factors including, but not limited to,

  • the trends in the volume weighted average price of the Equity Shares of the Company on the NSE, the Stock Exchange where the volume of trading in the Equity Shares of the Company has been higher than the volume of trading in the Equity Shares of the Company on BSE during the twelve calendar months preceding the calendar month in which the proposed Buy-back is considered by the Board of Directors;
  • the net worth of the Company
  • price earnings ratio
  • impact on other financial parameters and
  • the possible impact of Buyback on the earnings per share.

More on GeeCee Ventures Buyback Price Calculation

The Buyback Price represents a premium of 11.32% and 10.37% over the volume weighted average market price of the Equity Shares on the BSE & NSE respectively for 3 months preceding the date of the intimation of the aforementioned Board Meeting and 12.74% and 11.95% over the volume weighted average market price of the Equity Shares on the BSE & NSE respectively, for 2 weeks preceding the date of the intimation of the aforementioned Board Meeting to consider the proposal of Buyback.


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 and/or liquidation of financial instruments held by the Company and/or other permissible sources of funds but not from any borrowed funds.

The Company shall transfer from its free reserve/securities premium account 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 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.


GeeCee Ventures Limited – Manager to the Buyback

KJMC CORPORATE ADVISORS (INDIA) LIMITED
162, Atlanta, 16th Floor,
Nariman Point, Mumbai 400 021
Telephone: +91 22 4094 5500
Facsimile: +91 22 2285 2892
Contact Person: Mr. Kaushal Patwa / Mr. Ghanshyam Kapadia
Email: [email protected]
SEBI Registration Number: INM000002509
Validity Period: Permanent
CIN: L67120MH1998PLC113888

GeeCee Ventures Limited – Registrar to the Buyback

LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, L. B. S. Marg,
Vikhroli (West), Mumbai – 400 083, India.
Telephone: +91 22 4918 6200
Facsimile: +91 22 4918 6195
E-mail: [email protected]
Contact person: Mr. Sumeet Deshpande
Website: www.linkintime.co.in
SEBI Registration Number: INR000004058
CIN: U67190MH1999PTC118368

GeeCee Ventures Limited Contact Details

Company Contact Details
GeeCee Ventures Limited
CIN: L24249MH1984PLC032170
Registered Office: 209-210, Arcadia Building, 2nd Floor, 195, Nariman Point, Mumbai 400 021, India.
Telephone: + 91 22 4019 8600; Facsimile: +91 22 4019 8650
Contact Person: Ms. Dipyanti Kanojia, Company Secretary & Compliance Officer; Email:[email protected]; Website: www.geeceeventures.com

 


GeeCee Ventures Limited Buyback News

News 1 – Buyback PDF / Letter of Offer [Download]

News 2 – GeeCee Ventures Ltd – Public Announcement


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