In this article, we will discuss about IndiaBulls Ventures Buyback offer, buyback price, buyback size, IndiaBulls Ventures Limited Buyback record date, company financial, buyback necessity and its impact on company.
IndiaBulls Ventures Limited Buyback Details
|Buyback Type||Tender Offer|
|Opening Date||January 15, 2020|
|Closing Date||January 28, 2020|
|Buyback Offer Amount||1,000 Crores|
|Buyback No. of Shares||6,66,66,666|
|Date of Buyback Approval||Friday, October 11, 2019|
|Date of Public Announcement||Friday, December 6, 2019|
|Buy Back Price||Rs.150/-|
|Buy Back Premium||22%|
|Date of Board Meeting||Friday, October 11, 2019|
IndiaBulls Ventures Buyback Opening and Closing Date
The starting and closing date of this buyback is from January 15, 2020 to January 28, 2020.
IndiaBulls Ventures Buyback Cash Offer
Cash Offer to Buy-back up to 6,66,66,666 fully paid-up equity shares of the Company of face value of Rs.2 each, representing 12.61% of the total number of equity shares.
IndiaBulls Ventures Buyback Record Date
The decided record date is December 19, 2019.
IndiaBulls Ventures Buyback Price
At a price of Rs.150/- per Equity Share.
IndiaBulls Ventures Buyback Size
At a buyback price of Rs.150/- payable in cash for an aggregate maximum amount of Rs.1,000 Crores
IndiaBulls Ventures 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.
IndiaBulls Ventures Buyback Overview
The Indiabulls Ventures Limited (the “Company” or “IVL”) was incorporated on June 9, 1995 as GPF Securities Private Limited. The Company is a financial services company engaged in providing securities and derivative broking services. Its primary business verticals include brokerage services business and other advisory services.
The Company was subsequently converted into a public limited company and name was further changed to Orbis Securities Limited on January 5, 2004. The name of the Company was further changed to Indiabulls Ventures Limited on March 12, 2015. The CIN of the Company is L74999DL1995PLC069631.
The Company is a corporate member of the capital market and derivative segment of the National Stock Exchange of India Limited (NSE) and of the BSE Limited (BSE).The equity shares of the Company are listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). The Global Depository Receipts of the Company are listed on the Luxembourg Stock Exchange.
Company Finances – IndiaBulls Ventures Limited
The standalone brief financials of the Company are as under:
[In Rs. Lakhs]
|Total Expenses (excluding finance cost, depreciation & amortization)||848.14||12,476.80||7,060.96||4,710.30|
|Depreciation and amortization expenses||7.72||406.33||165.03||162.27|
|Profit before tax||10,877.66||12,801.42||7,030.62||5,927.78|
|Provision for tax|
(including Deferred Tax)
|Profit /(Loss) after tax||10,043.22||10,545.03||5,211.96||4,709.30|
|Equity Share Capital||11,487.51||11,348.76||9,262.56||6,404.14|
IndiaBulls Ventures Limited Buyback Dates
|Date of Board Meeting approving the Buyback||Friday, October 11, 2019|
|Date of publication of Public Announcement for Buyback||Friday, December 6, 2019|
|Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders||Thursday, December 19, 2019|
|Buyback Opening date||Wednesday, January 15, 2020|
|Buyback Closing date||Tuesday, January 28, 2020|
|Last Date of verification of Tender Forms by the Registrar||Saturday, February 1, 2020|
|Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar||Monday, February 3, 2020|
|*Last date of Settlement of Bids on the BSE Limited||Tuesday, February 4, 2020|
|Last date of return of unaccepted Equity Shares by BSE Limited||Tuesday, February 4, 2020|
|*Last date of Extinguishment of Equity Shares||Monday, February 10, 2020|
Details of Public Announcement
This Public Announcement (the “Public Announcement”) is being made pursuant to the provisions of Regulation 7(i) of the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018, as amended (including any statutory modifications or re-enactments that may be introduced (the “Buyback Regulations”) for the time being in force and contains the disclosures as specified in Schedule II to the Buyback Regulations.
|Financial Express||English||All editions|
Necessity of IndiaBulls Ventures Buyback
The Buy-back is a more efficient form of distributing surplus cash to the equity shareholders compared to other alternatives including interim dividend, inter-alia, for the following reasons:
i. The Buy-back gives an option to the equity shareholders to either participate in the Buy-back and receive cash in lieu of Equity Shares accepted under the Buy-back or not participate in the Buy-back and enjoy a resultant increase in their percentage of shareholding in the Company post the Buy-back;
ii. The Buy-back would help in improving certain key financial ratios of the Company;
iii. The Buy-back which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve a reservation for small shareholders as defined in this Regulations.
iv. As defined in the Buy-back Regulations, a small shareholder is a shareholder who holds Equity Shares having market value, on the basis of closing price on the recognized stock exchange in which highest trading volume in respect of such Equity Shares, as on the Record Date, of not more than Rs. 2,00,000/- (Rupees Two Lakhs only).
Impact of IndiaBulls Ventures Buyback on the Company
(i) The Buy-back is not likely to cause any material impact on the profitability/earnings of the Company except a reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income. Assuming that the response to the Buy-back is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buy-back Entitlement, the funds deployed by the Company towards the Buy-back excluding costs and expenses of the Buy-back, would be upto Rs. 1,000 Crores /- (Rupees One Thousand Crores only).
(ii) In terms of the Buy-back Regulations, the Promoter and Promoter Group of the Company, have the option to participate in the Buy-back. The Promoters and Promoter Group have expressed their intention that they may participate in the Buy-back and in case of their participation, they may tender upto an aggregate of 18,78,79,588 Equity Shares.
Salient financial parameters consequent to the Buy-back based on the standalone audited financial statements as on March 31, 2019 are as under:
|Parameters (based on audited standalone financial statements for year ended March 31, 2019)||Pre Buy-back||Post Buy-back|
(Assuming Full Acceptance)
|Net worth (Rs in Lakhs)||580,507.87||480,507.87|
|Return on Net worth (%)||2.87%||3.94%|
|Earnings Per Share – Basic (Rs)||1.93||2.20|
|Earnings Per Share – Diluted (Rs)||1.84||2.08|
|Book Value per Share (Rs)||102.30||95.96|
|Total Debt / Equity Ratio (in times)||0.12||0.16|
Basis of Calculating IndiaBulls Ventures Buyback Price
The Equity Shares are proposed to be bought back at a price of Rs.150/- (Rupees One Hundred and Fifty only) per Equity Share. The Maximum Buy-back Price shall represents
(i) premium of around 22% on BSE and around 20% on NSE over the volume weighted average price of the equity shares on BSE and NSE respectively for 2 weeks preceding the date of the Board Meeting, in which the proposal of the Buy-back was considered and
(ii) premium of around 51% over closing market price of equity shares of the company at NSE and BSE respectively preceding the date of Board Meeting in which the proposal of buy back was considered.
Source of Funds for the Buyback
(i) Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback would be upto Rs. 1,000 Crores/- (Rupees One Thousand Crores Only).
(ii) The funds for the Buy-back will be sourced from current surplus and/or cash and cash equivalents and/or internal accruals of the Company. The Company shall transfer from its free reserve a sum equal to the nominal value of the equity shares bought back through the Buy-back 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 Buy-back. Thus, borrowed funds will not be used for the Buy-back.
IndiaBulls Ventures Limited – Manager to the Buyback
|D & A FINANCIAL SERVICES (P) LIMITED|
13, Community Centre, East of Kailash,
New Delhi – 110065.
Tel.: 011-26419079/ 26218274;
Fax.: 011 – 26219491;
Contact Person: Mr. Priyaranjan
SEBI Regd. No. INM000011484
Validity Period: Permanent
IndiaBulls Ventures Limited – Registrar to the Buyback
KFin Technologies Private Limited
(Formerly known as “Karvy Fintech Private
CIN : U72400TG2017PTC117649
Selenium Building, Tower-B, Plot No- 31 & 32,
Financial District, Nanakramguda, Serilingampally,
Hyderabad, Rangareddi, Telangana, India, 500032.
Ph : +91 40 6716 2222
Fax: +91 40 2343 1551
Contact person: Mr. M. Murali Krishna
SEBI Registration Number: INR000000221
Validity Period: Permanent
IndiaBulls Ventures Limited Contact Details
|Company Contact Details|
|INDIABULLS VENTURES LIMITED|
Registered Office: M – 62 & 63, First Floor, Connaught Place, New Delhi – 110 001
Tel: 0124-6681199, Fax: 0124-6681240
Website: www.indiabullsventures.com, E-mail: email@example.com
Contact Person: Mr. Lalit Sharma, Company Secretary & Compliance Officer
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