KIOCL Limited Buyback Review, Offer Details, Price, Dates, Size & more

In 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 – https://top10stockbroker.com/share-price/kiocl-share-price/

KIOCL Limited Buyback Details

Buyback TypeTender Offer
Opening Date[●]
Closing Date[●]
Buyback Offer AmountRs.155.92 CRORES
Buyback No. of Shares1,41,74,469
Face ValueRs.10
Date of Buyback ApprovalOctober 19, 2020
Date of Public AnnouncementOctober 20,2020
Buy Back PriceRs.110
Buy Back Premium5.69%
Date of Board MeetingOctober 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

KIOCL Limited Buyback

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.


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]

ParticularsJune 30, 2020 (Unaudited)12 Months period ended March 31
(Audited)
2020202020192018
Total Income460.582056.532012.681784.44
Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items)432.371955.391808.491679.2
Interest2.559.970.80.5
Depreciation6.6827.4919.2718.65
Profit before tax18.9763.68184.1286.08
Provision for tax
(including Deferred Tax)
6.9520.2072.264.61
Profit /(Loss) after tax12.0243.48111.8681.48
Equity Share Capital621.93621.93*621.93634.51
Reserve and Surplus1306.021294.001372.031511.12
Networth1927.951915.931993.962145.63
Total DebtNAnilnil*nil

KIOCL Limited Buyback Dates

Date of Board Meeting approving the BuybackOctober 19,2020
Date of publication of Public Announcement for BuybackOctober 21,2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersOctober 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:

PublicationLanguageEdition
Business StandardEnglishAll Editions
Business StandardHindiAll Editions
Vartha BhartiKannadaBengaluru

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-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in crores)1915.931726.99
Return on Net worth (%)2.272.52
Earnings Per Share (Rs)0.700.72
Book Value per Share (Rs)30.8128.42
Price / Earnings Ratio (P/E)**84.6882.22
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.


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


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