James Warren Tea Limited Buyback – Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, we will discuss about James Warren Tea Limited Buyback offer, buyback price, buyback size, James Warren Tea 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 – James Warren Tea Share Price
James Warren Tea Limited Buyback Details
| Buyback Type | Tender Offer |
| Buyback Opening Date | NA |
| Buyback Closing Date | NA |
| Buyback Offer Amount | Rs. 26,73,75,000/- |
| Buyback No. of Shares | 23,25,000 |
| Face Value | Rs. 10 |
| Date of Buyback Approval | March 22, 2019 |
| Date of Public Announcement | May 06, 2019 |
| Buy Back Price | Rs. 115/- |
| Buy Back Premium | 1.30% |
| Date of Board Meeting | March 22, 2019 |
James Warren Tea Buyback Opening and Closing Date
The starting and closing date of this buyback is NA.
James Warren Tea Buyback Cash Offer
The Cash Offer to Buy-back up to 23,25,000 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 24.99% of the total number of equity shares.
James Warren Tea Buyback Record Date
The decided record date is Friday, May 17, 2019.
James Warren Tea Buyback Price
At a price of Rs. 115 (Rupees One Hundred Fifteen Only) per Equity Share.
James Warren Tea Buyback Size
At a buyback price of Rs. 115/- payable in cash for an aggregate consideration not exceeding Rs. 26,73,75,000/- (Twenty Six Crores Seventy Three Lakhs Seventy Five Thousand Only).
James Warren Tea Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 115 | 23000 | 600 | 0.54% |
| 40% | 400 | 115 | 46000 | 1200 | 1.07% |
| 60% | 600 | 115 | 69000 | 1800 | 1.61% |
| 80% | 800 | 115 | 92000 | 2400 | 2.14% |
| 100% | 1000 | 115 | 115000 | 3000 | 2.68% |
Profit is calculated from 10th May 2019 share price i.e. Rs.115 per share of James Warren Tea Limited.
According to the above table, if a share owner applies for 1000 shares of James Warren Tea limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.115 per share & receive Rs.600 as profit amount & 0.54% 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.115 & receive a profit of Rs.1800 @ 1.61% profit percentage.
James Warren Tea Limited Buyback Overview
The Company’s current business is resultant of de-merger of Tea business of Warren Tea Limited pursuant to the Scheme of Arrangement.
JWTL is engaged in the business of growing, harvesting, manufacturing and selling of tea. Such business is carried on by JWTL through its following 7 tea estates situated in diverse locations in the State of Assam:
- Balijan (H) Tea Estate
- Deamoolie Tea Estate
- Dhoedaam Tea Estate
- Rajah Alli Tea Estate
- Thowra Tea Estate
- Tippuk Tea Estate and
- Zaloni Tea Estate.
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Company Finances – James Warren Tea Limited
The salient financial information of the Company as extracted from the standalone audited financial statements of the Company for the last three financial years ended March 31, 2018, March 31, 2017 and March 31, 2016 and Interim Audited Financial for the nine months period ended December 31, 2018 are set out below:
[In Rs. Lakhs]
| Key Financials | 9 months period ended December 31, 2018 (Audited figures) | Year ended 31 March, 2018 (Audited figures) |
| Revenue from Operations | 13407.80 | 11610.28 |
| Other Income | 113.73 | 499.75 |
| Total Revenue | 13521.53 | 12110.03 |
| Total Expenses (excluding finance cost, depreciation & amortization) |
10958.12 | 12171.46 |
| Finance Cost | – | – |
| Depreciation and Amortization | 241.60 | 311.63 |
| Exceptional Items | 0.00 | 25.01 |
| Profit/(Loss) before Tax | 2321.81 | (348.05) |
| Tax Expenses ( including Deferred tax) | 577.39 | (94.93) |
| Net Profit/(Loss) after Tax | 1744.42 | (253.12) |
| Profit/(Loss) for proportionate shares in | (2.44) | (1.73) |
| Joint Venture | ||
| Profit / (Loss) for the period | 1741.98 | (254.85) |
| Paid Up Share Capital | 930.08 | 930.08 |
| Other Equity^^ | 11194.02 | 9493.59 |
| Net Worth | 12124.10 | 10423.67 |
| Total debt | 0.00 | 0.00 |
James Warren Tea Limited Buyback Dates
| Date of Board Meeting approving the Buyback | 22.03.2019 |
| Date of Public Announcement for Buyback | 06.05.2019 |
| Date of publication of Public Announcement for Buyback | 07.05.2019 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders |
17.05.2019 |
| Buyback Opening date | [•] |
| Buyback Closing date | [•] |
| 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
06.05.2019, which was published in the following newspapers on 07.05.2019:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Assomiya Khabar | Assamese | Jorhat and Guwahati Editions |
The Public Announcement was issued within 2 (two) Working Days from the date of declaration of results of the postal
ballot the results of which was declared on 04.05.2019.
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Necessity of James Warren Tea Limited Buyback
Buyback is being undertaken for the following reasons:
- The Buyback will help the Company to return surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
- The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve allocation of the number of shares as per their entitlement or 15% of the number of equity shares to be bought back whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of shareholders, who would get classified as “small shareholder” as per Regulation 2(i)(n) of the Buyback Regulations;
- It gives an option to the Shareholders holding equity shares of the Company, who can choose to participate and get cash in lieu of equity shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
- The Buyback may help in improving return on equity by a reduction in the equity base, thereby leading to long term increase in shareholders’ value;
It will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations.
Impact of James Warren Tea Limited Buyback on the Company
The Company believes that the Buyback is not likely to cause any material impact on the profitability or earnings of the Company except to the extent of reduction in the amount available for investment.
Assuming response to the Buyback is to the extent of 100% (full acceptance) from all the Eligible Shareholders up to their entitlement, the aggregate shareholding of the Promoter and Promoter Group Companies after the completion of the Buyback shall increase/decrease to [*]% of the post-Buyback total paid-up equity share capital of the Company from 74.87% of the pre-Buyback total paid-up equity share capital of the Company.
The debt-equity ratio after the completion of the Buyback will be within the permissible limit of 2:1 prescribed by the Companies Act, even if the response to the Buyback is to the extent of 100% (full acceptance).
| Parameter | Pre-Buy Back | Post-Buy Back | ||
| Standalone | Consolidated | Standalone | Consolidated | |
| Net worth (Rs. in lakhs) | 12130.19 | 12124.10 | 9456.44 | 9450.35 |
| Return on net worth (%) | 19.17 | 19.16 | 24.60 | 24.58 |
| Earnings per Share (Rs.) | 18.76 | 18.73 | 25.01 | 24.97 |
| Book value per Share (Rs.) | 130.42 | 130.36 | 135.56 | 135.47 |
| Price/earnings Ratio | 5.96 | 5.97 | 4.47 | 4.48 |
| Total debt / equity ratio | – | – | – | – |
Basis of Calculating James Warren Tea Buyback Price
The Buyback Offer Price has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices of the equity shares on the BSE where the Equity Shares are traded, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the earnings per Equity Share.
More on James Warren Tea Buyback Price Calculation
The Buyback Offer Price represents:
- Premium of 1.30% of the volume weighted average market price of the equity shares on BSE, during the three months preceding the date of intimation to the BSE for the Board Meeting to consider the proposal of the Buyback.
- The premium of 12.22% of the volume weighted average market price of the equity shares on BSE, for two weeks preceding the date of intimation to the BSE for the Board Meeting to consider the proposal of the Buyback.
- Also, premium of 13.41% over the closing price of the equity shares on the BSE as on one day prior the date of intimation of Buyback. There was no trading in the equity shares of the Company on the date of intimation of Buyback i.e., March 14, 2019, and the closing market price of the equity shares on BSE as on one day prior the date of intimation of Buyback was Rs. 101.40.
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
The funds for the implementation of the Buyback will be sourced out of the free reserves of the Company and/or such other sources as may be permitted by the Buyback Regulations or the Companies Act.
The Company shall transfer from its free reserves, a sum equal to the nominal value of the Shares bought back through the Buyback to the capital redemption reserve account, and the details of such transfer shall be disclosed in its balance sheet.
The funds borrowed, if any, from banks and financial institutions, will not be used for the Buyback.
James Warren Tea Limited – Manager to the Buyback
|
VC CORPORATE ADVISORS PRIVATE LIMITED
CIN:U67120WB2005PTC106051
SEBI REGN NO: INM000011096
Validity period: Permanent
(Contact Person: Mr. Anup Kumar Sharma)
31 Ganesh Chandra Avenue, 2nd Floor,
Suite No –2C, Kolkata-700 013
Phone No : (033) 2225-3940 / 3941
Fax : (033) 2225-3941
Email: mail@vccorporate.com
Website: www.vccorporate.com
|
James Warren Tea Limited – Registrar to the Buyback
|
MAHESHWARI DATAMATICS PRIVATE LIMITED
CIN: U20221WB1982PTC034886
SEBI REG. NO. INR000000353
Validity Period : Permanent (Contact Person: Mr. S. Rajagopal)
23, R.N. Mukherjee Road, 5th Floor,Kolkata – 700 001
Tel.: +91 33 2243 5029 / 5809;Fax: +91 33 2248 4787
Email: mdpldc@yahoo.com
Website: www.mdpl.in
|
James Warren Tea Limited Contact Details
| Company Contact Details |
|
JAMES WARREN TEA LIMITED
CIN: L15491AS2009PLC009345
Registered Office:
Dhoedaam Tea Estate, P.O. Borahapjan, Dist. Tinsukia, Assam – 786 150
Corporate Office : Aspirations Vintage, 12 Pretoria Street, Kolkata- 700 071
Tel. No.: +91 033 4034 1000, Fax: +91 033 4034 1015
E-mail: investors@jameswarrentea.com;
Website: www.jameswarrentea.com
Company Secretary and Compliance Officer : Mr. Gyanendra Singh
|
James Warren Tea Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – James Warren Tea Ltd – Public Announcement
FAQs of James Warren Tea Buyback
What is the James Warren Tea Buyback Period?
James Warren Tea Buyback Period is briefly the time interval starting from date of declaration of results of the postal ballot through remote e-voting i.e. 06.05.2019. 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 James Warren Tea Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. 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 James Warren Tea Buyback Offer?
James Warren Tea Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 23,25,000 Fully paid up Equity shares, adhering to the buyback price.
When James Warren Tea Buyback offer will start?
As per the released schedule, the James Warren Tea Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of James Warren Tea Buyback at all times, we ensure you have access to the right data.
When is the closing date of James Warren Tea Buyback?
For the ease in access to the dates and related aspects, we have segregated the closing date of James Warren Tea Buyback. The buyback would stay open from NA, and would close on NA. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for James Warren Tea Buyback?
The amount at which the shares are taken back by the company is referred to as James Warren Tea Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.115, the price paid to each eligible shareholder.
What is the record date for James Warren Tea Buyback offer?
Record date of James Warren Tea Buyback is May 17, 2019. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of James Warren Tea Buyback?
James Warren Tea Buyback Size is Rs. 26,73,75,000 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 James Warren Tea Buyback?
Objective of the James Warren Tea Buyback is to enhance the total return made by equity shareholders. Through buyback, company will distribute the surplus cash to shareholders as per their holding proportion. The Buyback may help in improving return on equity by a reduction in the equity base, thereby leading to long term increase in shareholders’ value
Who is the Registrar to James Warren Tea Buyback offer?
Designated registrar of James Warren Tea Buyback is MAHESHWARI DATAMATICS 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 to the James Warren Tea Buyback offer?
Manager to the James Warren Tea Buyback is VC CORPORATE ADVISORS PRIVATE LIMITED. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check James Warren Tea buyback acceptance ratio?
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 buyback 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 James Warren Tea 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 James Warren Tea Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as James Warren Tea Buyback Dates.
What can be the Impact of James Warren Tea 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. The 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.
Where to find complete details on James Warren Tea Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download 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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