Gokul Refoils Buyback Review, Offer Details, Price, Dates, Size & more

In this article, they will discuss about Gokul Refoils Limited Buyback offer, buyback price, buyback size, Gokul Refoils 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 – https://top10stockbroker.com/share-price/gokul-refoils-share-price/

Gokul Refoils Limited Buyback Details

Buyback TypeTender Offer
Opening DateFRIDAY. SEPTEMBER 11. 2020
Closing DateTHURSDAY.SEPTEMBER 24,.2020
Buyback Offer AmountRs.39,48,00,000
Buyback No. of Shares3,29,00,000
Face ValueRs.2
Date of Buyback ApprovalJune 16, 2020
Date of Public AnnouncementJuly 29, 2020
Buy Back PriceRs.12
Buy Back Premium11.62%
Date of Board MeetingJune 16, 2020

Gokul Refoils Buyback Opening and Closing Date

The starting and closing date of this buyback is from FRIDAY. SEPTEMBER 11. 2020 to THURSDAY.SEPTEMBER 24,.2020.

Gokul Refoils Buyback Cash Offer

Cash Offer to Buy-back up to 3,29,00,000 fully paid-up equity shares of the Company of face value of Rs.2 each, representing 15.32% and 12.98% of the fully paid-up Equity Share capital and free reserves.

Gokul Refoils Buyback Record Date

The decided record date is August 14, 2020.

Gokul Refoils Buyback Price

At a price of Rs.12 per Equity Share.

Gokul Refoils Buyback Size

At a buyback price of Rs.12 payable in cash for an aggregate maximum amount of Rs.39,48,00,000.

Gokul Refoils 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.


Gokul Refoils 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%2007001400006494017.30%
40%40070028000012988034.61%
60%60070042000019482051.91%
80%80070056000025976069.21%
100%100070070000032470086.52%

Profit is calculated from Sep 07,2020 share price i.e. Rs.12 per share of Gokul Refoils Limited.

According to the above table, if a shareowner applies for 1000 shares of Gokul Refoils limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.700 per share & receive Rs.64940 as profit amount & 17.30% 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.700 & receive a profit of Rs.194820 @ 51.91% profit percentage.


Gokul Refoils Limited Buyback Overview

Gokul Refoils Buyback

The Company was incorporated on December 29, 1992 as Gokul Refoils and Solvent Private Limited. It was converted into a public limited company vide special resolution passed at the Extra Ordinary General Meeting of the Company held on May 2, 1994.

This company is engaged in the business of seed processing, solvent extraction, refining of edible oils and industrial oil such as Castor Oil. For further details about the business activities of the Company kindly refer to its website gokulgroup dot com.


Company Finances – Gokul Refoils Limited

The brief audited consolidated financial information of the Company for the last three financial years are provided below:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
202020192018
Total Income2,884.291,987.0820,575.85
Total Expenses (excluding depreciation)1,553.681,457.3020,577.19
Depreciation23.3617.8715.96
Profit before tax1,306.57415.35(3,108.35)
Provision for tax
(including Deferred Tax)
564.80142.31(127.53)
Profit /(Loss) after tax741.77273.04(171.79)
Equity Share Capital2,637.90*2,637.902,637.90
Reserve and Surplus23,135.1022,391.3522,122.34
Networth25,773.0025,029.2524,760.24
Total Debt0.00*0.000.00

Gokul Refoils Limited Buyback Dates

Date of Board Meeting approving the BuybackJune 16, 2020
Date of publication of Public Announcement for BuybackJuly 30, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersAugust 14, 2020
Buyback Opening dateSeptember 11, 2020
Buyback Closing dateSeptember 24, 2020
Last Date of verification of Tender Forms by the RegistrarSeptember 26, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarOctober 05, 2020
*Last date of Settlement of Bids on the BSE LimitedOctober 06, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedOctober 06, 2020
*Last date of Extinguishment of Equity SharesOctober 13, 2020

Details of Public Announcement

The Public Announcement dated July 29, 2020 was published on July 30, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution i.e. July 28, 2020:

PublicationLanguageEdition
Financial ExpressEnglishAll Editions
JansattaHindiAll Editions
SandeshGujaratiRegional Editions

Necessity of Gokul Refoils Limited Buyback

The Company’s management strives to increase the Equity Shareholders’ value and the Buyback would result in the following benefits, amongst other things:

  1. The Buyback gives an option to the equity shareholders, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or they may choose not to participate thereby and enjoy a resultant increase in their percentage shareholding, post the Buyback, without additional investment; and
  2. The Buyback would help in improving certain key financial ratios of the Company.

Impact of Gokul Refoils Limited Buyback on the Company

The Buyback is not likely to cause any material impact on the profitability / earnings of the Company. Assuming there is full response to the Buyback, the funds deployed by the Company towards the Buyback would be Rs. 39,48,00,000 (Rupees Thirty Nine Crore Forty Eight Lakhs only).

The Buyback is expected to result in overall enhancement of the shareholders’ value and 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 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 financial statement of the Company for the half year ended March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2020)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)25,772.9921,824.99
Return on Net worth (%)2.883.40
Earnings Per Share (Rs)0.560.75
Book Value per Share (Rs)19.5422.05
P / E as per the latest audited financial results*14.9411.21
Total Debt / Equity Ratio

Basis of Calculating Gokul Refoils Buyback Price

The Buyback Price has been arrived at after considering various factors, such as closing market price of the equity shares of the Company on the Stock Exchanges for a period of six months preceding June 11, 2020,

The Buyback Price represents

  • a premium of 11.62% and 15.34% over the average closing price of the Company’s Equity Shares on BSE and NSE for the six months preceding the Date of Notice of Buyback. A premium of 14.95% and 17.48% over the average closing price of the Company’s Equity Shares on BSE and NSE for the one month preceding the Date of Notice of Buyback.

The closing price of the Equity Shares on the Date of Notice of Buyback was Rs. 10.85 and Rs. 10.25 on BSE and NSE respectively. The closing price of the Equity Shares on June 16, 2020, being the date of meeting of the Board of Directors approving the Buyback (“Date of Board Meeting”), was Rs. 14.25 and Rs. 13.55 on BSE and NSE respectively.


Source of Funds for the Buyback

The Equity Shares shall be bought back at a price of Rs. 12/- per Equity Share. Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback would be upto Rs. 39,48,00,000 (Rupees Thirty Nine Crore Forty Eight Lakhs only).

The Buyback Size of upto Rs. 39,48,00,000 (Rupees Thirty Nine Crore Forty Eight Lakhs only) represents 15.32% and 12.98% of the fully paid-up Equity Share capital and free reserves as per the latest available audited financial statements of the Company for the financial year ended March 31, 2020, on standalone and consolidated basis, respectively.

The maximum number of Shares to be bought back in the Buyback is 3,29,00,000 Equity Shares. The number of Shares to be bought back would constitute 24.94% of Equity capital of the Company, as on March 31, 2020.

This Company has confirmed that the funds for the Buyback will be made available from the current surplus and / or cash balances and / or internal accruals of the Company.

The Company does not propose raising debt for the Buyback. However, the Company may continue to borrow funds in the ordinary course of its business.


Gokul Refoils Limited – Manager to the Buyback

Saffron Capital Advisors Private Limited
605, Sixth Floor, Centre Point, Andheri-Kurla Road,
J. B. Nagar, Andheri (East), Mumbai – 400 059
Tel No.: +91 22 4082 0914/915;
Fax No.: +91 22 4082 0999;
E-mail: buybacks@saffronadvisor.com;
Website: www.saffronadvisor.com;
Investor grievance Id: investorgrievance@saffronadvisor.com;
SEBI Registration Number: INM000011211;
Contact Person: Mr. Amit Wagle / Mr. Gaurav Khandelwal

Gokul Refoils Limited – Registrar to the Buyback

Cameo Corporate Services Limited
“Subramanian Building”, No.1, Club House Road,
Chennai – 600 002, Tamilnadu, India
Tel: +91 44 4002 0700;
Fax: +91 44 2846 0129
Email: investor@cameoindia.com
Website: www.cameoindia.com
SEBI Registration: INR000003753
Contact Person: Ms. Sreepriya. K

Gokul Refoils Limited Contact Details

Company Contact Details
GOKUL REFOILS AND SOLVENT LIMITED
(Corporate Identification Number: L15142GJ1992PLC018745)
Registered Office: State Highway No. – 41, Near Sujanpur Patia, Sidhpur -384151, Dist. Patan, Gujarat, India;
Corporate Office: “Gokul House”, 43, Shreemali Co-op. Housing Society Ltd., Opp. Shikhar Building, Navrangpura, Ahmedabad – 380 009, Gujarat, India;
Tel. No.: +91 79 66304555/ 66615253/54/55; Email: abhinav.mathur@gokulgroup.com; Website: www.gokulgroup.com;
Contact Person: Mr. Abhinav Mathur, Company Secretary and Compliance Officer

 


Gokul Refoils Limited Buyback News

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

News 2 – Gokul Refoils Ltd – Public Announcement


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