Kanchi Karpooram Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, they will discuss about Kanchi Karpooram Limited Buyback offer, buyback price, buyback size, Kanchi Karpooram 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 – Kanchi Karpooram Share Price
Kanchi Karpooram Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [●] |
| Closing Date | [●] |
| Buyback Offer Amount | Rs.8,91,00,000 |
| Buyback No. of Shares | 2,20,000 |
| Face Value | Rs.10 |
| Date of Buyback Approval | November 19, 2020 |
| Date of Public Announcement | November 20, 2020 |
| Buy Back Price | Rs.405 |
| Buy Back Premium | 18.74% |
| Date of Board Meeting | November 19, 2020 |
Kanchi Karpooram Buyback Opening and Closing Date
The starting and closing date of this buyback is from [●] to [●].
Kanchi Karpooram Buyback Cash Offer
Cash Offer to Buy-back up to 2,20,000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 9.79% of the issued, subscribed and paid-up Equity Shares of the Company.
Kanchi Karpooram Buyback Record Date
The decided record date is Friday, December 4, 2020.
Kanchi Karpooram Buyback Price
At a price of Rs.405 per Equity Share.
Kanchi Karpooram Buyback Size
At a buyback price of Rs.405 payable in cash for an aggregate maximum amount of Rs.8,91,00,000.
Kanchi Karpooram 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.
Kanchi Karpooram Limited 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% |
Profit is calculated from Oct 21, 2020 share price i.e. Rs.241.75 per share of Kanchi Karpooram Limited.
According to the above table, if a shareowner applies for 1000 shares of Kanchi Karpooram limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.265 per share & receive Rs.4650 as profit amount & 1.92% 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.265 & receive a profit of Rs.13950 @ 5.77% profit percentage.
Kanchi Karpooram Limited Buyback Overview
The Company is engaged in the manufacturing business of Camphor, its derivatives, Gum rosin, value added resins and fortified rosin. For further details about the business activities of the Company kindly refer to its website www.kklgroup.in.
The Company was incorporated on January 31, 1992 as “Kanchi Karpooram Limited” vide Registration No. 18-22109 under the Companies Act, 1956 and received the certificate of commencement of business dated February 27, 1992 by the Registrar of Companies, Tamilnadu.
The Corporate Identification Number of the Company is L30006TN1992PLC022109.
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Company Finances – Kanchi Karpooram Ltd
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Lacs]
| Particulars | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2019 | 2018 | |
| Total Income | 20,368.81 | 18,838.86 | 11,778.72 |
| Total Expenses | 16,851.61 | 14,709.59 | 9,471.97 |
| Interest | 87.72 | 180.06 | 145.13 |
| Depreciation | 126.15 | 94.97 | 84.63 |
| Profit before tax | 3,517.21 | 4,121.06 | 2,306.75 |
| Provision for tax (including Deferred Tax) |
922.58 | 1,293.51 | 788.73 |
| Profit /(Loss) after tax | 2,594.63 | 2,827.55 | 1,518.02 |
| Equity Share Capital | 425.91 | 418.77 | 414.22 |
| Reserve and Surplus | 8,677.29 | 6,036.42 | 3,165.9 |
| Networth | 9,103.20 | 6,455.19 | 3,580.12 |
| Total Debt | 9.47 | 21.49 | 92.14 |
Kanchi Karpooram Limited Buyback Dates
| Date of Board Meeting approving the Buyback | November 19, 2020 |
| Date of publication of Public Announcement for Buyback | November 21, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | December 4, 2020 |
| 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
The Public Announcement was published on November 21, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution:
| Publication | Language | Edition |
| Financial Express | English | All Editions |
| Jansatta | Hindi | All Editions |
| Makkal Kural | Tamil | Regional Edition |
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Necessity of Kanchi Karpooram Limited Buyback
The Board of Directors of the Company is of the view that the proposed Buyback will help the Company to achieve the following objectives:
(a) The Buyback gives an option to the equity shareholders, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or they may choose not to participate thereby and enjoy a resultant increase in their percentage shareholding, post the Buyback, without additional investment; and
(b) The Buyback would help in improving certain key financial ratios of the Company.
Accordingly, the proposed objectives will be achieved by returning part of surplus cash back to Shareholders through the Buyback process. This may lead to reduction in outstanding Shares, improvement in Earnings per Share and enhanced return on invested capital. Further, 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.
Impact of Kanchi Karpooram Limited Buyback on the Company
The Buyback is not likely to cause any material impact on the profitability / earnings of the Company. Assuming there is full response to the Buyback, the funds deployed by the Company towards the Buyback would be Rs. 8,91,00,000 (Rupees Eight Crores Ninety One Lacs only) .
The Buyback is expected to result in overall enhancement of the shareholders’ value and 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 will not result in a change in control or otherwise affect the existing management structure of the Company.
The Company confirms that the debt-equity ratio post Buyback will be compliant with the permissible limit of 2:1 prescribed by the Act, even if the response to the Buyback is to the extent of 100% (assuming full acceptance in the Buyback Offer).
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2020 are as under:
| Parameters (based on audited standalone financial statements for year ended March 31, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 9,269.27 | 8,378.27 |
| Return on Net worth (%) | 27.99 | 30.97 |
| Earnings Per Share (Rs) | 61.39 | 68.21 |
| Book Value per Share (Rs) | 217.63 | 207.43 |
| Price / Earnings Ratio (P/E)** | 2.86 | 2.71 |
| Total Debt / Equity Ratio | 0.001 | 0.001 |
Basis of Calculating Kanchi Karpooram Buyback Price
The Buyback Price has been arrived at after considering various factors, such as closing market price of the equity shares of the Company on BSE for a period of three months preceding November 16, 2020, being the date on which notice for considering board of directors meeting for Buyback was issued (“Date of Notice of Buyback”), closing price of the last trading day preceding the Date of Notice of Buyback and the possible impact of the Buyback on the Earnings Per Share (“EPS”) and financial ratios of the Company and other relevant considerations.
The Buyback Price represents
premium of 18.74% over the average closing price of the Company’s Equity Shares on BSE for the three months preceding the Date of Notice of Buyback.
The Equity Shares of the Company did not trade on the Date of Notice of Buyback. The closing price of the Equity Shares a trading day before the Date of Notice of Buyback, i.e. November 14, 2020 was Rs. 435.55 on BSE.
The closing price of the Equity Shares on November 19, 2020, being the date of meeting of the Board of Directors approving the Buyback (“Date of Board Meeting”), was Rs. 418 on BSE.
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Source of Funds for the Buyback
The Equity Shares shall be bought back at a price of Rs. 405/- per Equity Share.
Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback would be upto Rs.8,91,00,000 (Rupees Eight Crores Ninety One Lacs only).
The Buyback Size of upto Rs.8,91,00,000 (Rupees Eight Crores Ninety One Lacs only) represents 9.79% of the fully paid-up Equity Share capital and free reserves as per the latest available standalone audited financial statements of the Company for the financial year ended March 31, 2020 .
The maximum number of Shares to be bought back in the Buyback is 2,20,000 Equity Shares. The number of Shares to be bought back would constitute 5.17% of the total paid up equity share capital of the Company as per the latest available standalone audited financial statements of the Company for the financial year ended March 31, 2020.
The Company has confirmed that the funds for the Buyback will be made available from the current surplus and / or cash balances and / or internal accruals of the Company.
The Company does not propose raising debt for the Buyback. However, the Company may continue to borrow funds in the ordinary course of its business.
Kanchi Karpooram Limited – Manager to the Buyback
| Saffron Capital Advisors Private Limited 605, Sixth Floor, Centre Point, Andheri-Kurla Road, J. B. Nagar, Andheri (East), Mumbai – 400 059 Tel No.: +91 22 4082 0914/915; Fax No.: +91 22 4082 0999; E-mail: buybacks@saffronadvisor.com; Website: www.saffronadvisor.com; Investor grievance Id: investorgrievance@saffronadvisor.com; SEBI Registration Number: INM000011211; Contact Person: Mr. Amit Wagle / Mr. Gaurav Khandelwal |
Kanchi Karpooram Ltd – Registrar to the Buyback
|
Cameo Corporate Services Limited
“Subramanian Building”, No.1, Club House Road, Chennai – 600 002, Tamilnadu, India Tel: +91 44 4002 0700; Fax: +91 44 2846 0129 Email: investor@cameoindia.com Website: www.cameoindia.com SEBI Registration: INR000003753 Contact Person: Ms. Sreepriya. K |
Kanchi Karpooram Ltd Contact Details
| Company Contact Details |
| KANCHI KARPOORAM LIMITED (Corporate Identification Number: L30006TN1992PLC022109) Registered Office: Parandur Road, Enathur Village, Karaipettai Post, Kanchipuram, Tamil Nadu, 631552, India; Corporate Office: No.1 Barnaby Avenue, Barnaby Road, Kilpauk, Chennai, Tamil Nadu, 600010, India; Tel. No.: +91 044 2640 1914/15/16; Email: secretarial@kklgroup.in; Website: www.kklgroup.in Contact Person: Mr. J. R. Vishnu Varthan, Company Secretary and Compliance Officer Cash offer to Buyback up to maximum of 2,20,000 (Two Lacs Twenty Thousand only) fully paid-up |
Kanchi Karpooram Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Kanchi Karpooram Ltd – Public Announcement
FAQs of Kanchi Karpooram Buyback
What is the Kanchi Karpooram Buyback Period?
Kanchi Karpooram 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 Kanchi Karpooram 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 Kanchi Karpooram Buyback Offer?
Kanchi Karpooram Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 2,20,000 Fully paid up Equity shares, adhering to the buyback price.
When Kanchi Karpooram Buyback offer will start?
As per the released schedule, the Kanchi Karpooram 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 Kanchi Karpooram Buyback at all times, we ensure you have access to the right data.
When is the closing date of Kanchi Karpooram Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Kanchi Karpooram Buyback. The buyback 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 Kanchi Karpooram Buyback?
The amount at which the shares are taken back by the company is referred to as Kanchi Karpooram Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.405, the price paid to each eligible shareholder.
What is the record date for Kanchi Karpooram Buyback offer?
Record date of Kanchi Karpooram Buyback is December 4, 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 Kanchi Karpooram Buyback?
Kanchi Karpooram Buyback Size is Rs.8,91,00,000 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 Kanchi Karpooram Buyback?
Objective of the Kanchi Karpooram 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 Kanchi Karpooram Buyback offer?
The designated registrar of Kanchi Karpooram Buyback is Cameo Corporate 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 Kanchi Karpooram Buyback offer?
Manager to the Kanchi Karpooram Buyback is Saffron Capital 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 Kanchi Karpooram 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 Kanchi Karpooram 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 Kanchi Karpooram Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Kanchi Karpooram Buyback Dates.
What can be the Impact of Kanchi Karpooram 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 Kanchi Karpooram 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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