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Glance Finance Limited Buyback Review, Offer Details, Price, Dates, Size & more

In this article, we will discuss about Glance Finance Limited Buyback offer, buyback price, buyback size, Glance Finance Buyback record date, company financial, buyback necessity and its impact on company.

Glance Finance Limited Buyback Details

Buyback TypeTender Offer
Opening DateJune 10, 2019
Closing DateJune 21, 2019
Buyback Offer AmountRs. 3,75,00,000/-
Buyback No. of Shares7,50,000
Face ValueRs. 10
Date of Buyback ApprovalFebruary 13, 2019
Date of Public AnnouncementApril 8, 2019
Buy Back PriceRs. 50/-
Buy Back PremiumRs 40/-
Date of Board MeetingFebruary 13, 2019

Glance Finance Buyback Opening and Closing Date

The starting and closing date of this buyback is June 10, 2019 to June 21, 2019.

Glance Finance Buyback Cash Offer

The Cash Offer to Buy-back up to 7,50,000 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 24.95% of the total number of equity shares.

Glance Finance Buyback Record Date

The decided record date is Friday, April 26, 2019.

Glance Finance Buyback Price

At a price of Rs.50 (Rupees Fifty only) per Equity Share.

Glance Finance Buyback Size

At a buyback price of Rs.50 /- payable in cash for an aggregate consideration not exceeding Rs. 3,75,00,000/- (Rupees Three Crore Seventy Five Lakh only).

Glance Finance 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.


Glance Finance 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%200501000020005.00%
40%4005020000400010.00%
60%6005030000600015.00%
80%8005040000800020.00%
100%100050500001000025.00%

Profit is calculated from 10th June 2019 share price i.e. Rs.40 per share of Glance Finance Limited.

According to the above table, if a share owner applies for 1000 shares of Glance Finance limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.50 per share & receive Rs.2000 as profit amount & 5.00% 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.50 & receive a profit of Rs.6000 @ 15.00% profit percentage.


Glance Finance Limited Buyback Overview

Glance Finance Limited buybackThe Company obtained the certificate of registration under Section 45IA of the Reserve Bank of India Act, 1934 from the Reserve Bank of India, on February 18, 1998 to operate as a Non-Banking Finance Institution.

Glance Finance Limited is a Non-Banking Finance (‘Non-Deposit Accepting or Holding’) Company. The Company is engaged in non-banking financial activities such as the advancement of loans, investments in equity shares, mutual funds, etc.


Company Finances – Glance Finance Limited

The salient financial information of the Company from the audited financial statements for the preceding three financial years being March 31, 2018, March 31, 2017 and March 31, 2016, and unaudited limited review for nine months ended December 31, 2018 are as under:

[In Rs. Lakhs]

ParticularsFor the nine
months ended
December 31, 2018
12 Months period ended March 31
(Audited)
Unaudited201820172016
Revenue from operations330.291,031.44937.331,359.65
Total Expenses (excluding finance cost, depreciation & amortization)312.33962.09894.471,317.61
Depreciation and amortization expenses2.996.828.3510.19
Profit before tax14.9762.5234.5131.95
Provision for tax
(including Deferred Tax)
(0.16)29.93(11.29)1.90
Profit /(Loss) after tax15.1332.5945.8030.04
Equity Share Capital302.5302.50302.52302.5
Reserves & Surplus1,368.131,353.011,320.421,274.62
Networth1,670.651,655.531,622.941,577.14
Total Debt

Glance Finance Limited Buyback Dates

Date of Board Meeting approving the BuybackFebruary 13, 2019
Date of publication of Public Announcement for BuybackApril 9, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersApril 26, 2019
Buyback Opening dateJune 10, 2019
Buyback Closing dateJune 21, 2019
Last Date of verification of Tender Forms by the RegistrarJuly 1, 2019
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarJuly 1, 2019
Last date of Settlement of Bids on the BSE LimitedJuly 2, 2019
Last date of return of unaccepted Equity Shares by BSE LimitedJuly 2, 2019
Last date of Extinguishment of Equity SharesJuly 9, 2019

Details of Public Announcement

In accordance with the provisions of Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated April 8, 2019 in relation to the Buyback which was published on April 9, 2019 in the following newspapers:

PublicationLanguageEdition
Financial ExpressEnglishAll editions
JansattaHindiAll editions
Mumbai LakshadeepMarathiMumbai

Necessity of Glance Finance Limited Buyback

The Buyback through “Tender Offer”, inter-alia, offers the following advantages:

  • Buyback helps the Company to distribute surplus cash to its shareholders in proportion to their shareholding;
  • The Buyback involves allocation of 15% reservation to small shareholders subject to their entitlement. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as a “small shareholder”;
  • The Buyback may help in improving financial ratios such as Earnings per share, return on equity, by reducing the equity base of the Company. It will also lead to long term increase in shareholder’s value;
  • Buyback gives an option to the existing shareholders to either participate in the Buyback and receive cash in lieu of equity shares accepted under the Buyback or not participate in the Buyback and enjoy a resultant increase in their percentage shareholding in the Company post the Buyback.

Impact of Glance Finance 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 the response to the Buyback is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buyback Entitlement, the aggregate shareholding of the Promoter and Promoter Group post the Buyback may increase to 75.63% from 74.83% prior to Buyback i.e. as on Record Date.

The response to the Buyback is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buyback Entitlement, the aggregate shareholding of the Equity Shareholders other than Promoter and Promoter Group, post the Buyback may decrease to 24.37% from 25.17% prior to Buyback i.e. as on Record Date.

Debt-equity ratio immediately on completion of Buyback shall be in compliant with the permissible limit of 2:1 prescribed under Section 68 of the Act and Regulation 4(ii) of the Buyback Regulations, even if the response to the Buyback is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buyback Entitlement.

Salient financial parameters consequent to the Buyback based on the audited financial statements for the financial year ended on March 31, 2018 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)1,655.531,280.53
Return on Net worth (%)1.97%2.54%
Earnings Per Share (Rs)1.081.44
Book Value per Share (Rs)55.0856.76
P/E as per the latest audited standalone financial statements36.3927.29
Total Debt / Equity Ratio00

Basis of Calculating Glance Finance Buyback Price

The fully paid-up equity shares of the Company are proposed to be bought back at a price of ₹ 50/- (Rupees Fifty only) per equity share (including a premium of ₹ 40/- per equity share).

The Buyback Price has been calculated after taking into consideration various factors including, but not limited to book value, return on 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 Glance Finance Buyback Price Calculation

The Equity Shares of the Company are infrequently traded on BSE. From April 1, 2018 till the date of Board Meeting i.e. February 13, 2019 only 1,05,140 Equity Shares were traded on the BSE which represents 3.50% of the outstanding equity shares of the Company.

As the Equity Shares are infrequently traded, the trend in the market price cannot be determined. No Equity Shares were traded on the date of the intimation of the Board Meeting i.e. February 1, 2019.


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. Thus, borrowed funds from banks and financial institutions will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.

Company confirmed that the Buyback shall be made out of free reserves and/ or securities premium account of the Company, and/ or such other sources as may be permitted by the Buyback Regulations of the Companies Act as at March 31, 2018 (the last audited financial statements available as on the date of Board meeting recommending the proposal of the Buyback).

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 balance sheet and annual report.


Glance Finance Limited – Manager to the Buyback

Master Capital Services Limited
SCO 22-23, Sector 9D, Madhya Marg, Chandigarh-160 009;
Contact Person: Mr. Jaspal Rawat / Mr. Sanchit Agarwal
Tel. No.: +91 172 484 8000; Fax No.: +91 172 274
Email: [email protected];
Website: www.mastertrust.co.in;
Investor Grievance E-mail: [email protected]
SEBI Registration No: INM000000107;
Validity: Permanent Registration;
CIN: U67190HR1994PLC076366.

Glance Finance 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;
Contact Person: Mr. Sumeet Deshpande
Tel. No.: +91 22 4918 6200; Fax: +91 22 4918 6195
Email: [email protected]
Website: www.linkintime.co.in;
SEBI Registration Number: INR000004058
Validity: Permanent Registration;
CIN: U67190MH1999PTC118368

Glance Finance Limited Contact Details

Company Contact Details
GLANCE FINANCE LIMITED
Registered Office: 5, Kitab Mahal, 192, Dr. D. N. Road, Fort, Mumbai – 400 001;
Tel. No.: +91 22 4066 6673/+91 22 4066 6674; Fax No.: + 91 22 4066 6670; Email:[email protected];
Corporate Identity Number (CIN): L65920MH1994PLC081333; Website: www.glancefinance.com;
Contact Person: Mr. Dewang Doshi – Manager

 


Glance Finance Limited Buyback News

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

News 2 – Glance Finance Ltd – Public Announcement


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