IndiaBulls Ventures Buyback Review, Offer Details, Price, Dates, Size & more

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
Face Value Rs.2
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.

IndiaBulls Ventures Buyback

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]

Particulars September 30,
2019
(Unaudited)
(Audited)
2019 2018 2017
Total Income 13,690.04 31,711.22 20,233.25 15,141.81
Total Expenses (excluding finance cost, depreciation & amortization) 848.14 12,476.80 7,060.96 4,710.30
Finance cost 1,956.52 6,026.67 5,976.64 4,341.46
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)
449.51 2,256.39 1,818.66 1,218.48
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
Other Equity 578,211.92 569,159.11 146,023.47 20,416.68
Networth 589,699.43 580,507.87 155,286.03 26,820.82
Total Debt 22,837.67 53,636.55 98,185.23 60,582.72

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.

Publication Language Edition
Financial Express English All editions
Jansatta Hindi 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
CIN:U74899DL1981PTC012709
13, Community Centre, East of Kailash,
New Delhi – 110065.
Tel.: 011-26419079/ 26218274;
Fax.: 011 – 26219491;
E-mail: [email protected]
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
Limited”)
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
Email: [email protected]
Website: https://www.kfintech.com
SEBI Registration Number: INR000000221
Validity Period: Permanent

IndiaBulls Ventures Limited Contact Details

Company Contact Details
INDIABULLS VENTURES LIMITED
CIN: L74999DL1995PLC069631
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 protected]
Contact Person: Mr. Lalit Sharma, Company Secretary & Compliance Officer
E-mail: [email protected]

 


IndiaBulls Ventures Limited Buyback News

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

News 2 – IndiaBulls Ventures Ltd – Public Announcement


Market Guide

What is IPO?
IPO Investment
Upcoming IPOs
 IPO Valuation

Featured Topics

Best Discount Broker in India
Top 10 Sub Broker Partner in India
Best Stock Broker in India
Sub Broker Franchise
Best Demat Account
Brokerage Calculator
Best Full Service Broker in India
Broking Franchisee
 Best Intraday Trading Brokers in India

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Get 90% Discount on Brokerage Now! Open Demat Account
×

Share your details & Become Sub Broker Now!

  1. Become Sub Broker

Offer valid for limited time.

×

Share your details & Open Demat A/C Now!

  1. Open Demat Account

Offer valid for limited time.

×

Share your details & Get IPO Allotment Now!

  1. Invest in IPO

Offer valid for limited time.

×

Share your details & Invest in PMS Now!

  1. Invest in PMS

Offer valid for limited time.