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KPR Mill Limited Buyback Review, Offer Details, Price, Dates, Size & more

In this article, we will discuss about KPR Mill Limited Buyback offer, buyback price, buyback size, K.P.R. Mill Buyback record date, company financial, buyback necessity and its impact on company.

KPR Mill Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening Date
Buyback Closing Date
Buyback Offer AmountRs. 263,30,50,368/-
Buyback No. of Shares37,50,784
Face ValueRs. 5
Date of Buyback ApprovalApril 29, 2019
Date of Public AnnouncementJune 12, 2019
Buy Back PriceRs. 702/-
Buy Back Premium22.63%
Date of Board MeetingApril 29, 2019

K.P.R. Mill Buyback Opening and Closing Date

The starting and closing date of this buyback is NA.

KPR Mill Limited Buyback Cash Offer

The Cash Offer to Buy-back up to 32,30,76,923 fully paid-up equity shares of the Company of face value of Rs. 2 each, representing 5.35% of the total number of equity shares.

KPR Mill Limited Buyback Record Date

The decided record date is Wednesday, June 19, 2019.

K.P.R. Mill Buyback Price

At a price of Rs.702(Rupees Seven Hundred and Two only) per Equity Share.

KPR Mill Buyback Size

At a buyback price of Rs.702/- payable in cash for an aggregate consideration not exceeding Rs.263,30,50,368 (Rupees Two Hundred Sixty Three Crores Thirty Lakh Fifty Thousand Three Hundred and Sixty Eight only).

K.P.R. Mill 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.


KPR Mill Limited Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200150030000011240011.98%
40%400150060000022480023.97%
60%600150090000033720035.95%
80%8001500120000044960047.93%
100%10001500150000056200059.91%

Profit is calculated from 30th May 2019 share price i.e. Rs.938 per share of K.P.R. Mill Limited.

According to the above table, if a share owner applies for 1000 shares of K.P.R. Mill Limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.1500 per share & receive Rs.112400 as profit amount & 11.98% 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.1500 & receive a profit of Rs.337200 @ 35.95% profit percentage.


KPR Mill Limited Buyback Overview

KPR Mill Limited BuybackThe Company is one of the largest vertically integrated apparel manufacturing company in India. The Company produces yarn, knitted grey & dyed fabric and readymade garments. It has eleven state of the art production facilities in the state of Tamil Nadu and one in Karnataka. The products of the Company are exported to 30 countries.
The Company meets its power requirement through its captive green power planti.e. wind power plant based in Tamil Nadu and co-generation power unit in Karnataka, India which is housed under the subsidiary of the Company i.e. K.P.R. Sugar Mill Limited.

K.P.R. Mill Limited adheres to various CSR activities besides better corporate governance practices. The Company continuously invest in the welfare of its employees. The Company has offered higher education and vocational facilities to over 12,000 employees.


Company Finances – K.P.R. Mill Limited

The salient financial information of the Company as extracted from the audited standalone financial statements for the three years ended March 31, 2019, March 31, 2018 and March 31, 2017 are as under:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
201920182017
Total Income50,69,23747,18,96048,61,777
Total Expenses (excluding finance cost, depreciation & amortization)39,36,27135,75,61536,49,078
Interest52,49638,43039,223
Depreciation and amortization expenses93,4291,01,4831,04,766
Profit before tax9,87,04110,03,43210,68,710
Provision for tax
(including Deferred Tax)
2,25,6472,31,1482,52,542
Profit /(Loss) after tax7,61,3947,72,2848,16,168
Equity Share Capital1,20,67990,48048,618
Other Equity
Networth49,39,19942,26,25946,70,561
Total Debt (Excluding working capital loans)2,2007,2421,14,626

K.P.R. Mill Limited Buyback Dates

Date of Board Meeting approving the BuybackApril 29, 2019
Date of publication of Public Announcement for BuybackJune 12, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersJune 19, 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 June 4, 2019 for the Buyback of Equity Shares published on June 5, 2019 in the following newspapers:

PublicationLanguageEdition
Business StandardEnglishAll editions
Business StandardHindiAll editions
Hosa DiganthaKannadaBengaluru

Necessity of K.P.R. Mill Limited Buyback

Buyback is a more efficient form of returning surplus cash to the members holding equity shares of the Company, inter-alia, for the following reasons:

  • 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;
  • 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 for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder”;
  • The Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • 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 not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
  • Optimizes the capital structure.

Impact of KPR Mill Limited Buyback on the Company

The Buy-Back 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, which the Company could have otherwise deployed towards generating investment income.

Assuming that the response to the Buyback is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement, the aggregate shareholding of the Promoter and Promoter Group post completion
of the Buyback may increase from 73.83% to [●]%.

Also, if none of the public shareholders participate and only the Promoter and Promoter Group participate to the extent of the Buyback Entitlement, their shareholding may reduce from 73.83% to [●]% of the total equity share capital of the Company.

The debt-equity ratio following the Buyback, both on standalone and consolidated basis, shall be compliant with 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) from all the Eligible Shareholders up to their Buyback Entitlement.

Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2018)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)49,39,19938,89,199
Return on Net worth (%)15.42%19.58%
Earnings Per Share (Rs)12.6713.39
Book Value per Share (Rs)81.8668.10
P/E as per the latest audited standalone financial statements22.1720.98
Total Debt / Equity Ratio0.100.13

Basis of Calculating K.P.R. Mill Buyback Price

The Buyback Price has been arrived at after considering various factors such as

  • the share price benchmarks on the NSE, the stock exchange where the maximum volume of trading in the Equity Shares is recorded,
  • the net worth of the Company, and
  • the impact on the earnings per Equity Share.

More on KPR Mill Buyback Price Calculation

The Buyback Price represents a premium of 22.16% over the volume weighted average market price of the Equity Shares on the NSE for the 60 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback and 24.15% over the volume weighted average market price of the Equity Shares on the NSE for the 10 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback.

The closing market price of the Equity Shares as on the date of intimation of the Board Meeting for considering the Buyback, being April 10, 2019, was Rs. 281.00 (Rupees Two Hundred and Eighty One only) on both NSE and BSE.


Source of Funds for the Buyback

The funds for the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Borrowed funds will not be used for the Buyback.

The Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.

KPR Mill Limited – Manager to the Buyback

IDBI Capital Markets & Securities Limited
6th Floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai-400005
Tel No.: +91 (22) 2217 1700; Fax No.: +91 (22) 2215 1787,
Contact Person: Apurva Bholay/Anusha Shetty
Email: [email protected]; Website: www.idbicapital.com
SEBI Registration: INM000010866; Validity Period: Permanent
CIN: U65990MH1993GOI075578

K.P.R. Mill Limited – Registrar to the Buyback

Karvy Fintech Private Limited
Karvy Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda,
Serilingampally Hyderabad, Rangareddi TG 500032
Phone: +91 40 6716 2222; Fax No: +91 40 2343 1551
Contact Person: M Murali Krishna
E-mail: [email protected]; Website: www.karvyfintech.com;
SEBI Registration No: INR000000221; Validity Period: Permanent Registration
CIN: U67200TG2017PTC117649

K.P.R. Mill Limited Contact Details

Company Contact Details
K.P.R. Mill LIMITED
CIN: L17111TZ2003PLC010518
Registered Office: No. 9, Gokul Buildings, A.K.S. Nagar,  Coimbatore – 641 001, India
Corporate Office: 1st Floor Srivari Shrimat, 1045, Avinashi Road, Coimbatore – 641 018, India
Tel.: 0422-2207777, Fax: 0422-2207778 | E-mail: [email protected] | Website: www.kprmilllimited.com | Contact Person: Mr.P. Kandaswamy, Company Secretary

 


K.P.R. Mill Limited Buyback News

News 1 – Buyback PDF / Letter of Offer [Download]

News 2 – K.P.R. Mill Ltd – Public Announcement


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