In this article, we will discuss Mahalaxmi Rubtech Buyback offer, buyback price, buyback size, Mahalaxmi Rubtech Buyback record date, company financial, buyback necessity, and its impact on the company.

To track the real-time share price of this Buyback, click on this link – https://top10stockbroker.com/share-price/mahalaxmi-rubtech-share-price/

Mahalaxmi Rubtech Buyback Details

Buyback TypeTender Offer
Opening DateSeptember 29, 2021
Closing DateOctober 12, 2021
Buyback Offer AmountRs.18,90,00,000
Buyback No. of Shares27,00,000
Face ValueRs.10
Date of Buyback ApprovalJuly 09, 2021
Date of Public AnnouncementAugust 16, 2021
Buy Back PriceRs.70
Buy Back Premium20.27%
Date of Board MeetingJuly 09, 2021

Mahalaxmi Rubtech Buyback Opening and Closing Date

The starting and closing date of this buyback is September 29, 2021,  and October 12, 2021.

Mahalaxmi Rubtech Buyback Cash Offer

The Cash Offer to Buy-back up to 27,00,000 fully paid-up equity shares of the Company of the face value of Rs.10 each, representing 20.27% of the total number of equity shares.

Mahalaxmi Rubtech Buyback Record Date

The decided record date of this buyback is August 27, 2021.

Mahalaxmi Rubtech Buyback Price

At a price of Rs.70 per Equity Share.

Mahalaxmi Rubtech Buyback Size

At a buyback price of Rs.70/- payable in cash for an aggregate consideration not exceeding Rs.18,90,00,000/-.

Mahalaxmi Rubtech Buyback Acceptance Query

You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.


Mahalaxmi Rubtech Buyback Acceptance Ratio

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

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200701400012001.88%
40%400702800024003.75%
60%600704200036005.63%
80%800705600048007.50%
100%1000707000060009.38%

Profit is calculated from the 17 August 2021 share price i.e. Rs.64 per share of Mahalaxmi Rubtech.

According to the above table, if a shareowner applies for 1000 shares of Mahalaxmi Rubtech & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.70 per share & receive Rs.1200 as profit amount & 1.88% 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.70 & receive a profit of Rs.3600 @ 5.63% profit percentage.


Mahalaxmi Rubtech Buyback Overview

Mahalaxmi Rubtech BuybackMahalaxmi RubTech (MRT) is a part of the Mahalaxmi Group of Industries, a corporate conglomerate active in the manufacture & export of Textiles, Dyes, Pigments, Auxiliaries, and Synthetic Rubber / PU-Coated Fabrics.

The Mahalaxmi Group has founded its business on a corporate philosophy of blending conventional and modern technologies, to produce ideal manufacturing solutions. And its industrial vision is truly transnational – in technology, perspectives, networking, and service ideas.

Mahalaxmi Rubtech Limited is headquartered in Ahmedabad, India. It has the technological expertise and the manufacturing capacity to produce blankets of lengths up to 426 feet, and widths up to 3,700 mm.


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Company Finances – Mahalaxmi Rubtech

The salient features of the financial information of the Company for the last three financial years as at and for the financial year ended March 31, 2021, March 31, 2020, and March 31, 2019, on a consolidated as well as a standalone basis are given below:

[In Rs. Lakh]

Particulars12 Months period ended March 31
202120202019
Total Income13937.6818111.1918665.01
Total Expenses (excluding finance cost, depreciation & amortization)11,934.2016338.8816943.25
Interest280.14144.38173.47
Depreciation and amortization expenses939.591005.59933.61
Profit before tax783.76622.34614.69
Provision for tax
(including Deferred Tax)
173.72140.68121.53
Profit /(Loss) after tax610.04481.66493.16
Equity Share Capital1332.031332.03*1332.03
Reserve and Surplus8071.267477.166972.81
Net-worth9403.298809.198304.84
Total Debt (Excluding working capital loans)3832.553339.453464.08

Mahalaxmi Rubtech Ltd Buyback Dates

Date of Board Meeting approving the BuybackJuly 09, 2021
Date of publication of Public Announcement for BuybackAugust 17, 2021
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersAugust 27, 2021
Buyback Opening dateSeptember 29, 2021
Buyback Closing dateOctober 12, 2021
Last date of receipt of the completed tender form and other specified documents[●]
Last Date of verification of Tender Forms by the RegistrarOctober 21, 2021
*Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarOctober 22, 2021
Last date of Settlement of Bids on the BSE LimitedOctober 25, 2021
*Last date of return of unaccepted Equity Shares by BSE LimitedOctober 25, 2021
Last date of Extinguishment of Equity SharesNovember 01, 2021

Details of Public Announcement

In accordance with the provisions of Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated August 16, 2021, for the Buyback of Equity Shares which was published within two Working Days i.e. on August 17, 2021, from the date of declaration of the results of such postal ballot i.e. August 13, 2021, in the following newspapers:

PublicationLanguageEdition
Financial ExpressEnglish daily newspaperAll Editions
JansattaHindi daily newspaperAll Editions
Financial ExpressGujarati daily newspaperRegional Edition

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Necessity of Mahalaxmi Rubtech 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 to Shareholders through the Buyback process. This may lead to a 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 Mahalaxmi Rubtech Buyback on the Company

The Buyback is not likely to cause any material impact on the profitability/earnings of the Company. Assuming there is a full response to the Buyback, the funds deployed by the Company towards the Buyback would be Rs 18,90,00,000 (Rupees Eighteen Crores Ninety Lacs only).

The Buyback is expected to result in the 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. Consequent to the Buyback and based on the number of shares bought back from the non-resident shareholders, foreign institutional investors, Indian financial institutions, banks, mutual funds and the public including other bodies corporate, the shareholding pattern of the Company would undergo a change.

Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2021, are as under:

Parameter (based on Audited Condensed Financial Statements as at and for the period ended March 31, 2021Pre Buy-backPost-Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)9,403.297513.29
Return on Net worth (%)6.498.12
Earnings Per Share (Rs)4.585.74
Book Value per Share (Rs)70.5970.74
P/E as per the latest audited standalone financial statements (BSE)8.556.82
Total Debt / Equity Ratio0.410.51

Basis of Calculating Mahalaxmi Rubtech Buyback Price

The Buyback Price has been arrived at after considering various factors, such as the closing market price of the equity shares of the Company on BSE for a period of one month preceding July 06, 2021, being the date on which notice for considering board of directors meeting for Buyback was issued (“Date of Notice of Buyback”), the 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 Offer Price represents:

(a) The Buyback Price per Equity Share represents a premium of 59.27% over the average closing price of the Company’s Equity Shares on BSE for the six months preceding the date of Notice of Buyback and a premium of 40.77% over the average closing price of the Company’s Equity Shares on BSE for the one month preceding the date of Notice of Buyback.

(b) The closing price of the Equity Shares on the Date of Notice of Buyback was Rs. 59.45 on BSE. The closing price of the Equity Shares on July 09, 2021, being the date of the meeting of the Board of Directors approving the Buyback (“Date of Board Meeting”), was Rs. 63.60 on BSE.


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Source of Funds for the Buyback

The Equity Shares shall be bought back at a price of Rs 70/- per Equity Share.

Assuming full acceptance, the funds that would be employed by the Company for the Buyback would be up to Rs 18,90,00,000 (Rupees Eighteen Crores Ninety Lacs only).

The Buyback Size of up to Rs 18,90,00,000 (Rupees Eighteen Crores Ninety Lacs only) represents 20.10% and 20.15% of the fully paid-up Equity Share capital and free reserves as per the latest available audited financial statements of the Company for the financial year ended March 31, 2021, on a standalone and consolidated basis, respectively.

The maximum number of shares to be bought back in the Buyback is 27,00,000 Equity Shares. The number of shares to be bought back would constitute 20.27% of the equity capital of the Company, as of March 31, 2021.

The Company has confirmed that the funds for the Buyback will be made available from free reserves and/or Share Premium Account and/or cash/ bank and/or cash equivalents/bank balances and/ or internal accruals and/or such other sources or by such mechanisms, as may be permitted by Law 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.


Mahalaxmi Rubtech – Manager to the Buyback

Buyback Manager Details
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

Mahalaxmi Rubtech – Registrar to the Buyback

Registrar Details
Cameo Corporate Services Limited
“Subramanian Building”, No.1, Club House Road,
Chennai – 600 002, Tamilnadu, India
Tel: +91 44 4002 0700 / 40020741 / 40020706;
Fax: +91 44 2846 0129
Email: priya@cameoindia.com
Website: www.cameoindia.com
SEBI Registration: INR000003753
Contact Person: Ms. Sreepriya. K

Mahalaxmi Rubtech Contact Details

Company Contact Details
MAHALAXMI RUBTECH LIMITED
(Corporate Identification Number: L25190GJ1991PLC016327)
Registered Office: 47, New Cloth Market, Ahmedabad – 380002, Gujarat, India;
Corporate Office: Mahalaxmi House, Ysl Avenue, Opp. Ketav Petrol Pump, Polytechnic Road,
Ambawadi, Ahmedabad – 380 015, Gujarat, India;
Tel. No.: +91 79 40008000; Fax: +91 79 40008030; Email: cs@mahalaxmigroup.net; Website: www.mrtglobal.com;
Contact Person: Mr. Kevin Dhruve, Company Secretary and Compliance Officer

 


Mahalaxmi Rubtech Buyback News

News 1Mahalaxmi Rubtech Buyback PDF / Letter of Offer [Download]

News 2Mahalaxmi Rubtech Ltd – Draft Letter of Offer [Download]


FAQs of Mahalaxmi Rubtech Buyback

What is the Mahalaxmi Rubtech Buyback Period?

Mahalaxmi Rubtech 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. August 13, 2021. 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 Mahalaxmi Rubtech Buyback?

This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The 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 Mahalaxmi Rubtech Buyback Offer?

Mahalaxmi Rubtech Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 27,00,000 Fully paid up Equity shares, adhering to the buyback price.

When Mahalaxmi Rubtech Buyback offer will start?

As per the released schedule, the Mahalaxmi Rubtech Buyback offer will start on September 29, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Mahalaxmi Rubtech Buyback at all times, we ensure you have access to the right data.

When is the closing date of Mahalaxmi Rubtech Buyback?

For ease in access to the dates and related aspects, we have segregated the closing date of Mahalaxmi Rubtech Buyback. The buyback would close on October 12, 2021 . The closing date is the last day on which the Buyback shall be open for the shareholders.

What is the offer price for Mahalaxmi Rubtech Buyback?

The amount at which the shares are taken back by the company is referred to as the Mahalaxmi Rubtech Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.70, the price paid to each eligible shareholder.

What is the record date for Mahalaxmi Rubtech Buyback offer?

The record date of Mahalaxmi Rubtech Buyback is August 27, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, the letter of offer and Tender form is sent to the eligible shareholders.

What is the issue size of Mahalaxmi Rubtech Buyback?

Mahalaxmi Rubtech Buyback Size is Rs.18,90,00,000 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 Mahalaxmi Rubtech Buyback?

The objective of the Mahalaxmi Rubtech 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 of Mahalaxmi Rubtech Buyback offer?

The designated registrar of Mahalaxmi Rubtech 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 of the Mahalaxmi Rubtech Buyback offer?

Manager to the Mahalaxmi Rubtech Buyback is Saffron Capital Advisors Private Limited. The manager basically ensures that the company following up buyback strictly adheres to and is in conformity with the provisions of the Companies Act and Buyback Regulations.

How to check Mahalaxmi Rubtech buyback acceptance ratio?

The 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 buy back 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 Mahalaxmi Rubtech 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 Mahalaxmi Rubtech Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Mahalaxmi Rubtech Buyback Dates.

What can be the Impact of Mahalaxmi Rubtech 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. 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 Mahalaxmi Rubtech 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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