Jullundhur Motor Agency Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, we will discuss about Jullundhur Motor Agency Buyback offer, buyback price, buyback size, Jullundhur Motor Agency 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 – Jullundhur Motor Agency Share Price
Jullundhur Motor Agency Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | January 25, 2021 |
| Closing Date | February 08, 2021 |
| Buyback Offer Amount | Rs.26,82,00,000/- |
| Buyback No. of Shares | 74,50,000 |
| Face Value | Rs.2 |
| Date of Buyback Approval | November 04, 2020 |
| Date of Public Announcement | December 15, 2020 |
| Buy Back Price | Rs.36/- |
| Buy Back Premium | 17.02% |
| Date of Board Meeting | November 04, 2020 |
Jullundhur Motor Agency Buyback Opening and Closing Date
The starting and closing date of this buyback is from January 25, 2021 to February 08, 202.
Jullundhur Motor Agency Buyback Cash Offer
Cash Offer to Buy-back up to 74,50,000 fully paid-up equity shares of the Company of face value of Rs.2 each, representing 24.98% of the total paid-up equity share capital and free reserves.
Jullundhur Motor Agency Buyback Record Date
The decided record date is DECEMBER 24, 2020.
Jullundhur Motor Agency Buyback Price
At a price of Rs.36/- per Equity Share.
Jullundhur Motor Agency Buyback Size
At a buyback price of Rs.36/- payable in cash for an aggregate maximum amount of Rs.26,82,00,000/-.
Jullundhur Motor Agency 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.
Jullundhur Motor Agency 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 | 36 | 7200 | 210 | 0.60% |
| 40% | 400 | 36 | 14400 | 420 | 1.20% |
| 60% | 600 | 36 | 21600 | 630 | 1.80% |
| 80% | 800 | 36 | 28800 | 840 | 2.40% |
| 100% | 1000 | 36 | 36000 | 1050 | 3.00% |
Profit is calculated from Feb 26, 2021 share price i.e. Rs.34.95 per share of Jullundhur Motor Agency.
According to the above table, if a shareowner applies for 1000 shares of Jullundhur Motor Agency & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.36 per share & receive Rs.210 as profit amount & 0.60% 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.36 & receive a profit of Rs.630 @ 1.80% profit percentage.
Jullundhur Motor Agency Buyback Overview
The Company is engaged in the business of dealing in spares parts and consumables of Automobiles. JMA is one of India’s the oldest and the largest auto component distribution company which has 59 branches across the Country.
JMA has long standing relationships with the major National & International auto component manufacturers.
Some of the renowned manufacturers for whom JMA is the national / regional distributors are Brakes India, Gabriel India, Mahle Filters, Rane Break Lining, Rane (Madras) Limited, Rane TRW Steering, Rane Engine Valve, Sundaram Fasteners, Webco India, Bimetal Bearings, and some international players such as Contitech India Pvt. Limited, Carcrew Technology and Schaeffler India.
At Present, the Company deals in products such as brakes, bearings, clutches, cooling system, engine components, suspension, power steering, oil & lubricants, filters etc. Most of Company’s suppliers are original equipment manufacturers (“OEM’s) to vehicle manufacturers.
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Jullundhur Motor Agency Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Lakhs]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 12,454.80 | 30,956.67 | 33,222.72 | 32,600.35 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 11,692.46 | 29,150.42 | 31,067.33 | 30,647.08 |
| Finance Cost | 8.00 | 0.00 | 2.97 | 7.91 |
| Depreciation | 32.47 | 90.85 | 99.23 | 104.98 |
| Profit before tax | 721.87 | 1,715.40 | 2,053.19 | 1,840.38 |
| Profit /(Loss) after tax | 517.11 | 1,270.38 | 1,344.06 | 1,199.02 |
| Equity Share Capital | 596.36 | 596.36 | *596.36 | 596.36 |
| Reserve and Surplus | 15350.98 | 15350.98 | 13,959.51 | 13,207.67 |
| Networth | 15947.34 | 15,761.03 | 14,555.87 | 13,804.03 |
| Total Debt | 0.00 | 0.00 | *0.00 | 0.00 |
Jullundhur Motor Agency Buyback Dates
| Date of Board Meeting approving the Buyback | November 04, 2020 |
| Date of publication of Public Announcement for Buyback | December 15, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | December 24, 2020 |
| Buyback Opening date | January 25, 2021 |
| Buyback Closing date | February 08, 2021 |
| Last Date of verification of Tender Forms by the Registrar | February 12, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | February 15, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | February 16, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | February 16, 2021 |
| *Last date of Extinguishment of Equity Shares | February 23, 2021 |
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated December 14, 2020 for the Buyback of Equity Shares published on December 15, 2020 in the following newspapers:
| Name of the Newspaper | Language | Editions |
| The Financial Express | English | All India |
| Jansatta | Hindi | All India |
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Necessity of Jullundhur Motor Agency Buyback
The Buyback is being undertaken by the Company to return surplus funds to its equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective and cost-efficient manner. This Buyback is being undertaken for the following reasons:
- The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
- Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve a reservation of up to 15% of the Buyback Size for small shareholders. The Company believes that this reservation of up to 15% for small shareholders would benefit a large number of the Company’s public shareholders, who would be classified as “Small Shareholders”;
- The Buyback would help in improving financial ratios like earnings per share (EPS) and return on equity (ROE), by reducing the equity base of the Company; and
- The Buyback gives the Eligible Shareholders (as defined below) the choice to either (A) participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or (B) not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.
Impact of Jullundhur Motor Agency Buyback on the Company
The Company believes that the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company except a reduction in the current investments.
The Company believes that the Buyback will not in any manner impair its ability to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is likely to result in improvement in EPS and enhance the return on equity. 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, thereby, enhancing the overall return to the shareholders.
The Buyback is not expected to 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 financial statement of the Company for March 31, 2020 are as under:
| Parameters (based on audited standalone financial statements for September 30, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in lakhs) | 15,761.03 | 13,079.03 |
| Return on Net worth (%) | 8.06 | 9.71 |
| Earnings Per Share (Rs) | 4.26 | 5.68 |
| Book Value per Share (Rs) | 52.86 | 58.47 |
| Price / Earnings Ratio (P/E)** | 7.58 | 5.69 |
| Total Debt / Equity Ratio | NA | NA |
Basis of Calculating Jullundhur Motor Agency Buyback Price
The Buyback Offer Price being Rs 36/- per Equity Share 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 Stock Exchange, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the EPS.
The closing market price of the Equity Shares as on the date of intimation of the date of the Board Meeting i.e. October 30, 2020 was Rs. 26.05 on NSE.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilised by the Company for the purpose of the Buyback would be Rs 26,82,00,000/- (Rupees Twenty Six Crores and Eighty Two Lakhs only) excluding the Transaction Costs.
The funds required for implementation of the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company and/or liquidation of financial instruments held by the Company. The Company will transfer from its free reserves and/or securities premium account a sum equal to the nominal value of the Equity Shares bought back pursuant to the Buyback to the Capital Redemption Reserve Account and details of such transfer will be disclosed in the subsequent audited financial statements of the Company. Company has neither raised nor does it intend to raise additional debt in connection with the Buyback.
The Company confirms that the funds for the Buyback will be made available out of its internal accruals and not out of the funds borrowed, if any, from banks and financial institutions.
Jullundhur Motor Agency – Manager to the Buyback
| SYSTEMATIX CORPORATE SERVICES LIMITED The Capital, A Wing, 603-606, 6th Floor, Plot No. C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India. Tel: +91-22-6704 8000 Fax:+91-22-6704 8022 Email: ecm@systematixgroup.in Website: www.systematixgroup.in Contact Person: Mr. Amit Kumar SEBI Registration No: INM000004224 Validity Period: Permanent |
Jullundhur Motor Agency Ltd – Registrar to the Buyback
|
MAS SERVICES LIMITED
T-34, 2nd Floor, Okhla Industrial Area, Phase-2, New Delhi – 110020, Delhi, India. Tel: +91-11-26387281/82/83 Fax: +91-11-26387384 Email: investor@masserv.com Website: www.masserv.com Contact Person: Mr. Nanak Chand Pal SEBI Registration Number: INR000000049 Validity Period: Permanent |
Jullundhur Motor Agency Ltd Contact Details
| Company Contact Details |
| JULLUNDUR MOTOR AGENCY (DELHI) LIMITED Registered Office: “458-1/16, Sohna Road, Opp. New Court, Gurugram -122001, Haryana, India Corporate Identification Number (CIN): L35999HR1998PLC033943 Tel: +91-124-3019210/211; Fax: +91-124-4233868; Email: jmaadmincs@jmaindia.com; Website: www.jmaindia.com Contact Person: Mr. Ramkesh Pal, Company Secretary and Compliance Officer |
Jullundhur Motor Agency Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Jullundhur Motor Agency Ltd – Public Announcement
FAQs of Jullundhar Motor Agency Buyback
What is the Jullundhar Motor Agency Buyback Period?
Jullundhar Motor Agency 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. January 25, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. February 08, 2021.
What type of buyback is Jullundhar Motor Agency 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 Jullundhar Motor Agency Buyback Offer?
Jullundhar Motor Agency Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 74,50,000 Fully paid up Equity shares, adhering to the buyback price.
When Jullundhar Motor Agency Buyback offer will start?
As per the released schedule, the Jullundhar Motor Agency Buyback offer will start on January 25, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Jullundhar Motor Agency Buyback at all times, we ensure you have access to the right data.
When is the closing date of Jullundhar Motor Agency Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Jullundhar Motor Agency Buyback. The buyback would close on February 08, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Jullundhar Motor Agency Buyback?
The amount at which the shares are taken back by the company is referred to as Jullundhar Motor Agency Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.36, the price paid to each eligible shareholder.
What is the record date for Jullundhar Motor Agency Buyback offer?
Record date of Jullundhar Motor Agency Buyback is DECEMBER 24, 2020. 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 Jullundhar Motor Agency Buyback?
Jullundhar Motor Agency Buyback Size is Rs.26,82,00,000 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 Jullundhar Motor Agency Buyback?
Objective of the Jullundhar Motor Agency 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 Jullundhar Motor Agency Buyback offer?
The designated registrar of Jullundhar Motor Agency Buyback is MAS SERVICES 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 Jullundhar Motor Agency Buyback offer?
Manager to the Jullundhar Motor Agency Buyback is SYSTEMATIX CORPORATE SERVICES 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 Jullundhar Motor Agency 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 Jullundhar Motor Agency 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 Jullundhar Motor Agency Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Jullundhar Motor Agency Buyback Dates.
What can be the Impact of Jullundhar Motor Agency 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. 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 Jullundhar Motor Agency 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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