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

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Industrial and Prudential Investment Limited Buyback Details

Buyback TypeTender Offer
Opening DateFebruary 04, 2021
Closing DateFebruary 17, 2021
Buyback Offer AmountRs.8,34,00,000/-
Buyback No. of Shares69,500
Face ValueRs.10
Date of Buyback ApprovalNovember 12, 2020
Date of Public AnnouncementDecember 22, 2020
Buy Back PriceRs.1200
Buy Back Premium27.61%
Date of Board MeetingNovember 12, 2020

Industrial and Prudential Investment Buyback Opening and Closing Date

The starting and closing date of this buyback is from February 04, 2021 to February 17, 2021.

Industrial and Prudential Investment Buyback Cash Offer

Cash Offer to Buy-back up to 69,500 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 3.98% of the issued, subscribed and paid-up Equity Shares of the Company.

Industrial and Prudential Investment Buyback Record Date

The decided record date is JANUARY 1, 2021.

Industrial and Prudential Investment Buyback Price

At a price of Rs.1200 per Equity Share.

Industrial and Prudential Investment Buyback Size

At a buyback price of Rs.1200 payable in cash for an aggregate maximum amount of Rs.8,34,00,000/-.

Industrial and Prudential Investment 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.


Industrial and Prudential Investment 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%2001200240000217802.00%
40%4001200480000435603.99%
60%6001200720000653405.99%
80%8001200960000871207.98%
100%1000120012000001089009.98%

Profit is calculated from Jan 25, 2021 share price i.e. Rs.1091.10 per share of Industrial and Prudential Investment Limited.

According to the above table, if a shareowner applies for 1000 shares of Industrial and Prudential Investment limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.1200 per share & receive Rs.21780 as profit amount & 2.00% 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.1200 & receive a profit of Rs.65340 @ 5.99% profit percentage.


Industrial and Prudential Investment Buyback Overview

Industrial and Prudential Investment Buyback

The Company is an NBFC registered with Reserve Bank of India and engaged in investment and trading of securities and mutual fund units, headquartered in Kolkata.

The Company is managed by Swarup Family as promoter, who along with other promoter and promoter group companies hold 65.89% of equity share capital of the Company.

This Company is operating out of the leased premises owned by the promoter group company and has required infrastructure including information technology hardware and software to run its Investment Business.

The day to day operations are being looked after by the core team comprising of the CFO and other members.


Industrial and Prudential Investment Buyback – Company Finances

The brief audited consolidated financial information of the Company for the last 3 financial years are:

[In Rs. Lakhs]

ParticularsSep 30, 2020 (Unaudited)12 Months period ended March 31
(Audited)
2020202020192018
Total Income9,86.9312,16.189,77.049,20.52
Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items)26.342,55.6763.3364.57
Finance Cost
Depreciation0.080.09
Profit before tax9,60.599,60.519,13.638,55.86
Profit /(Loss) after tax7,84.368,67.798,62.528,23.78
Equity Share Capital1,74.531,74.56*1,74.561,74.56
Other Equity25,073.47176,23.42191,08.1236,73.64
Networth59,89.8152,29.5346,32.8738,47.52
Total Debt

Industrial and Prudential Investment Limited Buyback Dates

Date of Board Meeting approving the BuybackNovember 12, 2020
Date of publication of Public Announcement for BuybackDecember 23, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersJanuary 01, 2021
Buyback Opening dateFebruary 04, 2021
Buyback Closing dateFebruary 17, 2021
Last Date of verification of Tender Forms by the RegistrarFebruary 22, 2021
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarFebruary 26, 2021
*Last date of Settlement of Bids on the BSE LimitedMarch 01, 2021
Last date of return of unaccepted Equity Shares by BSE LimitedMarch 01, 2021
*Last date of Extinguishment of Equity SharesMarch 08, 2021

Details of Public Announcement

This is to say, in accordance with Regulation 7(i) of the Buyback Regulations, the Public Announcement was published on December 23, 2020 in the following newspapers:

PublicationLanguageEdition
Financial ExpressEnglishAll Editions
Ei SamayBengaliRegional edition
Jan SattaHindiAll editions

Necessity of Industrial and Prudential Investment Buyback

The Buyback is being proposed by the Company to service the equity more efficiently. Additionally, the Company’s management strives to increase equity shareholders value and the Buyback would result in amongst other things:

a) The Buyback is being done to return surplus funds, after taking into account the strategic and operational cash needs of the Company in the short to medium term

b) The Buyback may help in improving earnings per share, return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;

c) The Buyback gives an option to the equity shareholders, who can either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback; or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buyback, without additional investment;

d) The Buyback, which is being implemented through the Tender Offer as prescribed under the Buyback Regulations, shall be from its existing securities holders on a proportionate basis in accordance with the provisions of Securities and Exchange Board of India (Buy-Back Of Securities) Regulations, 2018;Provided that fifteen per cent of the number of securities which the company proposes to buy-back or number of securities entitled as per their shareholding, whichever is higher, shall be reserved for small shareholders


Impact of Industrial and Prudential Investment Buyback on the Company

They believe that the Buyback is not likely to cause any material impact on the profitability/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 Equity Shareholders other than Promoter and Persons in Control, post the Buyback may decrease to 31.40% from 34.11% prior to Buyback.

The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.

The debt-equity ratio immediately on completion of Buyback shall be in compliant with the permissible limit of 2:1 prescribed under the Companies Act even if the response to the Buyback is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buyback Entitlement. The same has been certified vide a certificate dated November 12, 2020 by the statutory auditor of the Company.

They believe, the Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations.

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for September 30, 2020 are as under:

Parameters (based on audited standalone financial statements for September 30, 2020)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in crores)52,29.5342,01.48
Return on Net worth (%)16.59%20.65%
Earnings Per Share (Rs)49.7251.78
Book Value per Share (Rs)299.63250.71
Price / Earnings Ratio (P/E)**14.0813.52
Total Debt / Equity Ratio

Basis of Calculating Industrial and Prudential Investment Buyback Price

The Equity Shares are proposed to be bought back at a price of Rs.1200/- per Equity Share. The Buyback Price of Rs.1200/- per Equity Share has been arrived at after considering various factors including, but not limited to, the trends in the volume weighted average price and closing price of the Equity Shares on the BSE.

The Buyback Price represents:

a) Premium of 27.61% over the closing price of the Equity Shares on BSE as on 9th November 2020 being the date on which the Company intimated to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.

b) Premium of 40.83% over the volume weighted average market price of the Equity Shares on BSE, during the two weeks preceding the date of intimation to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.

c) Premium of 41.91% over the volume weighted average market price of the Equity Shares on BSE, during the 30 trading days preceding the date of intimation to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.

d) Premium of 41.26% over the volume weighted average market price of the Equity Shares on BSE, during the 60 trading days preceding the date of intimation to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback would be Rs.8,34,00,000/- , excluding Transaction Costs.

The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback Regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.

The funds for the Buyback will be sourced from the cash and cash equivalents including investment in mutual fund and/or accumulated internal accruals and no borrowings are made to discharge the Buyback obligations. However, if required, the Company may borrow funds in the ordinary course of its business.

This Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.

The Company shall transfer from its free reserves a sum equal to the nominal value of the equity shares purchased through the Buyback to the Capital Redemption Reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statement.


Industrial and Prudential Investment Limited – Manager to the Buyback

Inga Ventures Private Limited
1229, Hubtown Solaris, N.S. Phadke Marg,
Opp. Telli Galli, Andheri (East), Mumbai 400069
Tel. No.: +91 022 26816003, Fax: +91 022 26816020;
Contact Person: Kavita Shah;
Email: kavita@ingaventures.com;
Website: www.ingaventures.com;
SEBI Registration No: INM000012698;
Validity Period: Permanent
CIN: U67100MH2018PTC318359

Industrial and Prudential Investment Ltd – Registrar to the Buyback

Link Intime India Private Limited
C-101, 247 Park, L.B.S. Marg, Vikhroli (West)
Mumbai, Maharashtra – 400 083
Tel. No.: +91 22 4918 6200; Fax: +91 22 4918 6195;
Contact person: Sumeet Deshpande;
Email: ipicl.buyback@linkintime.co.in
Website: www.linkintime.co.in;
SEBI Registration No: INR000004058;
Validity Period: Permanent
CIN: U67190MH1999PTC118368

Industrial and Prudential Investment Ltd Contact Details

Company Contact Details
INDUSTRIAL AND PRUDENTIAL INVESTMENT COMPANY LIMITED
Corporate Identity Number (CIN): L65990WB1913PLC218486
Registered Office: Paharpur House 8/1/B, Diamond Harbour Road,Kolkata 700027
Telephone No. 033 40133000; E -mail id: contact@industrialprudential.com
Website: www.industrialprudential.com
Contact Person: Ayan Datta, Company Secretary & Compliance Officer

 


Industrial and Prudential Investment Limited Buyback News

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

News 2 – Industrial and Prudential Investment Ltd – Public Announcement


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