KIOCL Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, they will discuss about KIOCL Limited Buyback offer, buyback price, buyback size, KIOCL 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 – KIOCL Share Price
KIOCL Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [●] |
| Closing Date | [●] |
| Buyback Offer Amount | Rs.155.92 CRORES |
| Buyback No. of Shares | 1,41,74,469 |
| Face Value | Rs.10 |
| Date of Buyback Approval | October 19, 2020 |
| Date of Public Announcement | October 20,2020 |
| Buy Back Price | Rs.110 |
| Buy Back Premium | 5.69% |
| Date of Board Meeting | October 19, 2020 |
KIOCL Buyback Opening and Closing Date
The starting and closing date of this buyback is from [●] to [●].
KIOCL Buyback Cash Offer
Cash Offer to Buy-back up to 1,41,74,469 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 2.28% of the issued, subscribed and paid-up Equity Shares of the Company.
KIOCL Buyback Record Date
The decided record date is OCTOBER 30, 2020.
KIOCL Buyback Price
At a price of Rs.110 per Equity Share.
KIOCL Buyback Size
At a buyback price of Rs.110 payable in cash for an aggregate maximum amount of Rs.155.92 CRORES.
KIOCL 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.
KIOCL Limited Buyback Overview
The Company is a Schedule “A”-Miniratna Category-I Company. The Company was conferred status in February 24, 1999. Miniratna Category-I status of the company which provides certain operational and financial autonomy.
The Company is an Export Oriented Unit and is presently operating 3.5 MTPA Iron Ore Pellets Plant and has a Blast Furnace Unit to manufacture 2.16 lakh tonnes per annum Pig Iron at Mangalore, Karnataka.
The Company has opened up Operation & Maintenance vertical and providing services in the area of core activities and also diversified into the business of mineral exploration works.
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Company Finances – KIOCL Limited
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Crores]
| Particulars | June 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 460.58 | 2056.53 | 2012.68 | 1784.44 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 432.37 | 1955.39 | 1808.49 | 1679.2 |
| Interest | 2.55 | 9.97 | 0.8 | 0.5 |
| Depreciation | 6.68 | 27.49 | 19.27 | 18.65 |
| Profit before tax | 18.97 | 63.68 | 184.12 | 86.08 |
| Provision for tax (including Deferred Tax) |
6.95 | 20.20 | 72.26 | 4.61 |
| Profit /(Loss) after tax | 12.02 | 43.48 | 111.86 | 81.48 |
| Equity Share Capital | 621.93 | 621.93 | *621.93 | 634.51 |
| Reserve and Surplus | 1306.02 | 1294.00 | 1372.03 | 1511.12 |
| Networth | 1927.95 | 1915.93 | 1993.96 | 2145.63 |
| Total Debt | NA | nil | nil | *nil |
KIOCL Limited Buyback Dates
| Date of Board Meeting approving the Buyback | October 19,2020 |
| Date of publication of Public Announcement for Buyback | October 21,2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | October 30,2020 |
| 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 October 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 |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All Editions |
| Vartha Bharti | Kannada | Bengaluru |
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Necessity of KIOCL Limited Buyback
Buyback is the acquisition by a company of its own shares. Buyback is an efficient form of returning surplus cash to the members holding equity shares of the Company, inter-alia, for the following reasons:
i. 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;
ii. The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation of 15% for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder”;
iii. The Buyback would help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders‟ value; and
iv. The Buyback gives an option to the members 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 to not participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Impact of KIOCL Limited Buyback on the Company
We believe the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company except a reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
We 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. 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.
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) | 1915.93 | 1726.99 |
| Return on Net worth (%) | 2.27 | 2.52 |
| Earnings Per Share (Rs) | 0.70 | 0.72 |
| Book Value per Share (Rs) | 30.81 | 28.42 |
| Price / Earnings Ratio (P/E)** | 84.68 | 82.22 |
| Total Debt / Equity Ratio | – | – |
Basis of Calculating KIOCL Buyback Price
The Buyback Offer Price of Rs 110 (Rupees One Hundred Ten Only) per Equity Share has been arrived at after considering various factors such as the average closing prices of the Equity Shares on the 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 Rs 110 (Rupees One Hundred Ten only) per Equity Share represents a premium of 5.69% on BSE and 6.53% on NSE over the average closing price in the last six calendar month preceding the month in which Buyback Offer is approved by the Board.
Know more about other Buybacks and their Registrar details
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 1,41,74,469 Equity Shares at a price of Rs 110 per Equity Share would be Rs 155.92 Crores excluding the transaction costs viz. brokerage, advisor‟s fees, intermediaries fees, public announcement publication fees, filing fees, turnover charges, applicable taxes inter alia buyback taxes, securities transaction tax, goods and services tax, stamp duty and other incidental and related expense.
The Buyback shall be made out of the free reserves of the Company as at March 31, 2020 (i.e. the last audited standalone financial statements available as on the date of Board Meeting recommending the proposal of the Buyback).
This Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and the details of such transfer shall be disclosed in its subsequent audited balance sheet.
The funds for the Buyback will be met out of internally generated cash resources of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Accordingly, borrowed funds will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.
KIOCL Limited – Manager to the Buyback
| IDBI Capital Markets & Securities Limited 6th floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai 400 005 Tel No.:+91 (22) 2217 1700; Fax No.: +91 (22) 2215 1787; Contact Person: Indrajit Bhagat/Chandresh Sharma Email: kiocl.buyback2020@idbicapital.com; Website: www.idbicapital.com SEBI Registration Number: INM000010866; Validity Period: Permanent CIN: U65990MH1993GOI075578 |
KIOCL Limited – Registrar to the Buyback
|
Integrated Registry Management Services Private Limited
No. 30, Ramana Residency, 4th Cross, Sampige Road, Malleshwaram, Bengaluru – 560003, Karnataka Tel No: +91 8023460815 to 818; Fax: +91 8023460819 Contact Person: Mr. K Harish Email: irg@integratedindia.in; Website: www.integratedindia.in SEBI Registration Number : INR000000544 Validity Period: Permanent Registration CIN: U74900TN2015PTC10146 |
KIOCL Limited Contact Details
| Company Contact Details |
| KIOCL LIMITED (A Government of India Enterprise) Registered & Corporate Office: II Block, Koramangala, Bangalore – 560 034, Karnataka, India CIN: L13100KA1976GOI002974 Contact Person: Shri Pushp Kant Mishra, Company Secretary & Compliance Officer Tele-fax: +91 80 25531525 | Email: cs@kioclltd.com | Website: www.kioclltd.in |
KIOCL Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – KIOCL Ltd – Public Announcement
FAQs of KIOCL Limited Buyback
What is the KIOCL Limited Buyback Period?
KIOCL Limited 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 KIOCL Limited 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 KIOCL Limited Buyback Offer?
KIOCL Limited Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 1,41,74,469 Fully paid up Equity shares, adhering to the buyback price.
When KIOCL Limited Buyback offer will start?
As per the released schedule, the KIOCL Limited 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 KIOCL Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of KIOCL Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of KIOCL Limited 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 KIOCL Limited Buyback?
The amount at which the shares are taken back by the company is referred to as KIOCL Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.110, the price paid to each eligible shareholder.
What is the record date for KIOCL Limited Buyback offer?
Record date of KIOCL Limited Buyback is OCTOBER 30, 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 KIOCL Limited Buyback?
KIOCL Limited Buyback Size is Rs.155.92 CRORES 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 KIOCL Limited Buyback?
Objective of the KIOCL Limited 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 KIOCL Limited Buyback offer?
The designated registrar of KIOCL Limited Buyback is Integrated Registry Management Services 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 KIOCL Limited Buyback offer?
Manager to the KIOCL Limited Buyback is IDBI Capital Markets & Securities 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 KIOCL Limited 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 KIOCL Limited 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 KIOCL Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as KIOCL Limited Buyback Dates.
What can be the Impact of KIOCL Limited 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 KIOCL Limited 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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