Jagran Prakashan Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Apr 29, 2022In this article, we will discuss Jagran Prakashan Buyback offer, buyback price, buyback size, Jagran Prakashan Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – Jagran Prakashan Share Price
Jagran Prakashan Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | March 08, 2021 |
| Closing Date | August 16, 2021 |
| Buyback Offer Amount | Rs.102,01,93,082.90 |
| Buyback No. of Shares | 1,75,45,728 |
| Face Value | Rs.2 |
| Date of Buyback Approval | [●] |
| Date of Public Announcement | [●] |
| Buy Back Price | Rs.60 |
| Buy Back Premium | 86.46% |
| Date of Board Meeting | March 02, 2021 |
Jagran Prakashan Buyback Opening and Closing Date
The starting and closing date of this buyback is March 08, 2021, and August 16, 2021.
Jagran Prakashan Buyback Cash Offer
The Cash Offer to Buy-back up to 1,75,45,728 fully paid-up equity shares of the Company of the face value of Rs.2 each, representing 86.46% of the total number of equity shares.
Jagran Prakashan Buyback Record Date
The decided record date of this buyback is [●].
Jagran Prakashan Buyback Price
At a price of Rs.60 per Equity Share.
Jagran Prakashan Buyback Size
At a buyback price of Rs.60/- payable in cash for an aggregate consideration not exceeding Rs.102,01,93,082.90/-.
Jagran Prakashan Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
Jagran Prakashan Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 60 | 12000 | 200 | 0.34% |
| 40% | 400 | 60 | 24000 | 400 | 0.68% |
| 60% | 600 | 60 | 36000 | 600 | 1.02% |
| 80% | 800 | 60 | 48000 | 800 | 1.36% |
| 100% | 1000 | 60 | 60000 | 1000 | 1.69% |
Profit is calculated from the 18 August 2021 share price i.e. Rs.59 per share of Jagran Prakashan.
According to the above table, if a shareowner applies for 1000 shares of Jagran Prakashan & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.60 per share & receive Rs.200 as profit amount & 0.34% 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.60 & receive a profit of Rs.600 @ 1.02% profit percentage.
Jagran Prakashan Buyback Overview
The Company was incorporated on 18th July 1975 under the Companies Act, 1956 as “Jagran Prakashan Private Limited” and subsequently became a deemed public limited company under Section 43A of the 1956 Act. In the year 2000, upon amendment of Section 43A of the Companies Act, 1956, the Company chose to keep its status as a public limited company pursuant to shareholders resolution passed on 31st August 2000.
In the year 2004, the Company was converted into a private limited company pursuant to a shareholders resolution passed on 28th September 2004. Further, on 23rd November 2005, the Company was converted into a public limited company pursuant to a shareholders resolution passed on 18th November 2005.
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Company Finances – Jagran Prakashan
The salient features of the financial information of the Company for the last three financial years as at and for the financial year ended March 31, 2018, March 31, 2017, and March 31, 2016, on consolidated as well as a standalone basis are given below:
[In Rs. million]
| Particulars | 12 Months period ended March 31 | ||
| 2018 | 2017 | 2016 | |
| Total Income | 192,473.88 | 193,991.86 | 182,807.87 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 142,958.85 | 137,370.71 | 127,960.24 |
| Interest | 1,200.65 | 1,977.50 | 5,734.98 |
| Depreciation and amortization expenses | 8,235.13 | 8,166.09 | 8,406.10 |
| Profit before tax | 40,079.25 | 46,477.56 | 40,706.55 |
| Provision for tax (including Deferred Tax) | 13,477.95 | 14,871.13 | 13,551.33 |
| Profit /(Loss) after tax | 26,601.30 | 31,606.43 | 27,155.22 |
| Equity Share Capital | 6,228.24 | 6,538.24 | 6,538.24 |
| Reserve and Surplus | 144,957.33 | 159,538.75 | 128,128.31 |
| Net-worth | 151,185.57 | 166,076.99 | 134,666.55 |
| Total Debt (Excluding working capital loans) | 9,125.87 | 15,637.13 | 37,848.80 |
Jagran Prakashan Ltd Buyback Dates
| Date of Board Meeting approving the Buyback | March 02, 2021 |
| Date of publication of Public Announcement for Buyback | [●] |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | [●] |
| Buyback Opening date | March 08, 2021 |
| Buyback Closing date | August 16,2021 |
| Last date of receipt of the completed tender form and other specified documents | [●] |
| Last Date of verification of Tender Forms by the Registrar | [●] |
| *Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | [●] |
| Last date of Settlement of Bids on the BSE Limited | [●] |
| *Last date of return of unaccepted Equity Shares by BSE Limited | [●] |
| Last date of Extinguishment of Equity Shares | [●] |
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated March 22, 2021, for the Buyback of Equity Shares published on March 24, 2021, in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Dainik Jagran | Regional (Hindi) | Kanpur Edition |
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The necessity of Jagran Prakashan Buyback
The Buyback is being undertaken, inter-alia, for the following reasons:
(a) The Buyback will help the Company to return surplus cash to its members holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members.
(b) Since the Buyback is being implemented through the Tender Offer route as per the Buyback Regulations, 15% of the number of shares to be bought back by the Company would have to be reserved for the Small Shareholders. The Company believes that this reservation for Small Shareholders would benefit the public shareholders since a large number of public shareholders would get classified as a “Small Shareholder”.
(c) The Buyback may help in improving return on equity, by reducing the equity base, thereby leading to a long-term increase in Shareholders’ value.
(d) The Buyback gives an option to the members holding Equity Shares of the Company, who can either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback Offer; or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buyback Offer, without any additional investment.
(e) The Buyback will help to optimize the capital structure.
Impact of Jagran Prakashan Buyback on the Company
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.
The Buyback is not expected to impact growth opportunities for the Company. Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company.
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 standalone financial statements for the period ended on March 31, 2020, are as under:
| Parameter (based on Audited Condensed Financial Statements as at and for the period ended June 30, 2020 | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in million) | 151,185.57 | 121,935.57 |
| Return on Net worth (%) | 17.58 | 21.80 |
| Earnings Per Share (Rs) | 8.52 | 8.97 |
| Book Value per Share (Rs) | 48.55 | 41.14 |
| P/E as per the latest audited standalone financial statements (BSE) | 19.30 | 18.32 |
| Total Debt / Equity Ratio | 0.06 | 0.07 |
Basis of Calculating Jagran Prakashan Buyback Price
Buyback Offer Price of INR 60 per Equity Share has been arrived at after considering various factors such as the average closing prices of the Equity Shares of the Company on Stock Exchanges where the Equity Shares of the Company are listed, the net worth of the Company and the impact of the Buyback on the key financial ratios of the Company.
The Buyback Offer Price of INR 60 per Equity Share represents a premium of 24.72% and 24.05% over the closing prices of the Equity Shares on the BSE and NSE respectively. On 17th April 2018, being the date on which the Company intimated the Stock Exchanges of the date of the meeting of the Board wherein proposal of the Buyback was considered and a premium of 17.37% and 15.24% over the volume-weighted average market price of the Equity Shares on BSE and NSE respectively, for a period of 1 (one) month preceding 17th April 2018, being the date on which the Company intimated the Stock Exchanges of the date of the meeting of the Board wherein the proposal of the Buyback was considered.
The Buyback Offer Price represents:
(a) The earning per Equity Share of the Company pre-Buyback as of 31st March 2018, on a standalone basis, was INR 8.52 (Indian Rupees Eight and fifty-two paise only) which will increase to INR 8.97 (Indian Rupees Eight and ninety-seven 20 paise only) post Buyback based on the assumption mentioned in notes to table on salient financial parameters in paragraph 9.13 of this Letter of Offer.
(b) The return on net-worth of the Company pre Buyback as of 31st March 2018, on a standalone basis, was 17.58% which will increase to 21.80% post Buyback based on the assumption mentioned in notes to table on salient financial parameters in paragraph 9.13 of this Letter of Offer.
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Source of Funds for the Buyback
Assuming full Acceptance, the funds that would be employed by the Company for the purpose of the Buyback of up to 1,75,45,728 Equity Shares at a price of INR 60 per Equity Share would be INR 102,01,93,082.90. 11.2 Buyback will be met out of internal accruals, retained earnings, cash and bank balances, and investments made by the Company.
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 its capital redemption reserve account and the details of such transfer shall be disclosed in its subsequent audited balance sheet. The Company confirms that as required under Section 68(2)(d) of Companies Act, 2013, the ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice the paid-up capital and free reserves after the Buyback.
Jagran Prakashan – Manager to the Buyback
| Buyback Manager Details |
| Ernst & Young Merchant Banking Services Private Limited The Ruby, 14th Floor, 29 Senapati Bapat Marg, Dadar West, Mumbai – 400028, India Tel No.: +91-22-6192 0000; Fax No.: +91-22-6192 1000 Website: www.ey.com/india; Email: jagran.buyback2018@in.ey.com Investor grievance e-mail: investorgrievances@in.ey.com SEBI Registration No.: INM000010700 Validity Period: Permanent (unless suspended or cancelled by SEBI) Contact Person: Mr. Abhishek Sureka CIN: U67120MH2000PTC129109 |
Jagran Prakashan – Registrar to the Buyback
| Registrar Details |
| Karvy Computershare Private Limited Karvy Selenium, Tower- B, Plot No 31 & 32, Gachibowli Financial district, Nanakramguda, Serilingampally Mandal, Hyderabad, 500032, India Tel: +91-40‐6716 2222; Fax: +91-40–2343 1551 Email: jpl.buybackoffer@karvy.com Website: www.karvycomputershare.com Contact person: Mr. M.Murali Krishna SEBI Registration No.: INR000000221 Validity Period: Permanent (unless suspended or cancelled by SEBI) CIN: U72400TG2003PTC041636 |
Jagran Prakashan Contact Details
| Company Contact Details |
| Jagran Prakashan Limited Corporate Identity Number: L22219UP1975PLC004147 Registered Office address: Jagran Building, 2, Sarvodaya Nagar, Kanpur – 208005; Website: www.jplcorp.in Contact Person: Mr. Amit Jaiswal, Company Secretary, and Compliance Officer Tel: 0512-2216161; Fax: 0512-2230625, E-mail: investor@jagran.com |
Jagran Prakashan Buyback News
News 1 – Jagran Prakashan Buyback PDF / Letter of Offer [Download]
News 2 – Jagran Prakashan Ltd – Draft Letter of Offer [Download]
FAQs of Jagran Prakashan Buyback
What is the Jagran Prakashan Buyback Period?
Jagran Prakashan Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. NA. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
What type of buyback is Jagran Prakashan Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the Jagran Prakashan Buyback Offer?
Jagran Prakashan Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 1,75,45,728 Fully paid up Equity shares, adhering to the buyback price.
When Jagran Prakashan Buyback offer will start?
As per the released schedule, the Jagran Prakashan Buyback offer will start on March 08, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Jagran Prakashan Buyback at all times, we ensure you have access to the right data.
When is the closing date of Jagran Prakashan Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Jagran Prakashan Buyback. The buyback would close on 16 August 2021. The closing date is the last day on which the Buyback shall be open for the shareholders.
What is the offer price for Jagran Prakashan Buyback?
The amount at which the shares are taken back by the company is referred to as the Jagran Prakashan Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.60, the price paid to each eligible shareholder.
What is the record date for Jagran Prakashan Buyback offer?
The record date of Jagran Prakashan Buyback is NA. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, the letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Jagran Prakashan Buyback?
Jagran Prakashan Buyback Size is Rs.102,01,93,082.90 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for Jagran Prakashan Buyback?
The objective of the Jagran Prakashan Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Jagran Prakashan Buyback offer?
The designated registrar of Jagran Prakashan Buyback is Karvy Computershare Private Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address, and more.
Who is the Manager of the Jagran Prakashan Buyback offer?
Manager to the Jagran Prakashan Buyback is Ernst & Young Merchant Banking Services Private Limited. The manager basically ensures that the company following up buyback strictly adheres to and is in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check the Jagran Prakashan buyback acceptance ratio?
The acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buy back and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find Jagran Prakashan Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the Jagran Prakashan Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Jagran Prakashan Buyback Dates.
What can be the Impact of Jagran Prakashan Buyback on the Company?
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. Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on Jagran Prakashan Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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