Majesco Limited Buyback Review, Offer Details, Price, Dates, Size & more
In this article, they will discuss about Majesco Limited Buyback offer, buyback price, buyback size, Majesco Buyback record date, company financial, buyback necessity and its impact on company.
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Majesco Limited Buyback Details
|Buyback Type||Tender Offer|
|Opening Date||NOVEMBER 27, 2020|
|Closing Date||DECEMBER 11, 2020|
|Buyback Offer Amount||Rs.631,26,06,300/-|
|Buyback No. of Shares||74,70,540|
|Date of Buyback Approval||October 08, 2020|
|Date of Public Announcement||November 02, 2020|
|Buy Back Price||Rs.845|
|Buy Back Premium||15.4%|
|Date of Board Meeting||October 08, 2020|
Majesco Buyback Opening and Closing Date
The starting and closing date of this buyback is from NOVEMBER 27, 2020 to DECEMBER 11, 2020.
Majesco Buyback Cash Offer
Cash Offer to Buy-back up to 74,70,540 fully paid-up equity shares of the Company of face value of Rs.5 each, representing 24.78% of the issued, subscribed and paid-up Equity Shares of the Company.
Majesco Buyback Record Date
The decided record date is NOVEMBER 13, 2020.
Majesco Buyback Price
At a price of Rs.845 per Equity Share.
Majesco Buyback Size
At a buyback price of Rs.845 payable in cash for an aggregate maximum amount of Rs.631,26,06,300/-.
Majesco 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.
Majesco Limited Buyback Overview
The Company, through Majesco, USA (an erstwhile subsidiary), was a global leader of cloud insurance software solutions for insurance business transformation, offering a portfolio of IT products and services, comprised of proprietary software solutions, IT consulting, application development, etc., for property & casualty/ general insurance, and life, annuities & pensions providers, to manage policy administration, claims management and billing functions.
On September 21, 2020, the Company disposed of its entire shareholding in Majesco, USA (approximately 74.07%), pursuant to a merger of Majesco, USA with an entity affiliated with Thoma Bravo, L.P., a private equity fund (“Merger”).
Following completion of the Merger, the primary business activity of the Company is ownership and leasing of commercial property
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Company Finances – Majesco Ltd
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Crores]
|Particulars||Sep 30, 2020 (Unaudited)||12 Months period ended March 31|
|Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items)||522||1,120||1,303||709|
|Profit before tax||323,812||2,492||1,933||2,074|
|Provision for tax|
(including Deferred Tax)
|Profit /(Loss) after tax||251,206||2,397||1,399||1,427|
|Equity Share Capital||1,494||1,435||1,417||1,406|
|Reserve and Surplus||308,834||54,697||52,640||50,584|
Majesco Limited Buyback Dates
|Date of Board Meeting approving the Buyback||October 08, 2020|
|Date of publication of Public Announcement for Buyback||November 03, 2020|
|Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders||NOVEMBER 13, 2020|
|Buyback Opening date||November 27, 2020|
|Buyback Closing date||December 11, 2020|
|Last Date of verification of Tender Forms by the Registrar||December 21, 2020|
|Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar||December 21, 2020|
|*Last date of Settlement of Bids on the BSE Limited||December 22, 2020|
|Last date of return of unaccepted Equity Shares by BSE Limited||December 22, 2020|
|*Last date of Extinguishment of Equity Shares||December 29, 2020|
Details of Public Announcement
The Public Announcement was published on 03, 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:
|Business Standard||English||All Editions|
|Business Standard||Hindi||All Editions|
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Necessity of Majesco Limited Buyback
The Board at its meeting held on October 08, 2020, considered all relevant factors, including the strategic and operational cash requirements in the medium term, present debt to equity ratio of the Company, the increase in accumulated free reserves and considered it appropriate to allocate a sum not exceeding Rs. 631,26,06,300/- (excluding Transaction Costs) for distributing to the Eligible Shareholders, through the Buyback.
The Buyback is being undertaken to return a part of surplus cash received by the Company, upon the sale of its shareholding in Majesco, USA to the Shareholders, in an expedient, effective and cost-efficient manner.
The Buyback is being undertaken for the following reasons:
This Buyback will help the Company to return surplus cash to its Shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to Shareholders;
The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve allocating to the small shareholders the higher of a) number of shares entitled as per their holdings, or b) 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” in terms of the Regulation 2(i)(n) of the Buyback Regulations and;
The Buyback gives an option to the Shareholders holding equity shares of the Company to either choose to participate and get cash in lieu of equity shares to be accepted under the Buyback or to choose not to participate and enjoy a resultant increase in their percentage shareholding in the Company and their share in any dividend which may be announced by the Company, post the Buyback, without additional investment.
Pursuant to completion of the Buyback, the Board may consider distributing the remainder of the surplus cash received from the sale of its shareholding in Majesco, USA (net of expenses, costs and monies required by the Company for its operations) through a dividend.
Impact of Majesco Limited Buyback on the Company
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.
The Company believes that the Buyback will not in any manner impair the ability of the Company to meet its cash requirements.
The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.
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 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)||310,328||247,202|
|Return on Net worth (%)||80.95**%||101.62**%|
|Earnings Per Share (Rs)||867.56**||1,120.87**|
|Book Value per Share (Rs)||1,038.51||1,103.01|
|Price / Earnings Ratio (P/E)**||1.06x**||0.82x**|
|Total Debt / Equity Ratio||–||–|
Basis of Calculating Majesco Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs. 845/- (Rupees Eight Hundred and Forty Five only) per Equity Share.
The Buyback Price represents
(i) Premium of 15.4% and 17.2% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during the three months preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback.
(ii) Premium of 3.7% and 4.3% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during two weeks preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback.
(iii) Premium of 3.1% and 3.1% over the closing market price of the Equity Shares on BSE and NSE respectively, as on the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback.
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Source of Funds for the Buyback
The Buyback would be financed out of free reserves of the Company (including securities premium account) and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback Regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.
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.
This Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.
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.
Majesco Limited – Manager to the Buyback
|Kotak Mahindra Capital Company Limited|
Address: 27BKC, 1st Floor, Plot No. C-27, “G” Block, Bandra Kurla Complex,
Bandra (East), Mumbai – 400051
Contact Person: Mr. Ganesh Rane
SEBI Registration Number: INM000008704
Validity Period: Permanent
Majesco Ltd – Registrar to the Buyback
KFin Technologies Pvt. Ltd.
Address: Selenium, Tower B, Plot No- 31 and 32, Financial
District,Nanakramguda, Serilingampally, Hyderabad,
Rangareddi – 500 032 Telangana, India.
Phone: +91 40 6716 2222 / 1800 345 4001
Fax: +91 40 2343 1551
Contact Person: M Murali Krishna
SEBI Registration Number: INR000000221
Validity Period: Permanent
Majesco Ltd Contact Details
|Company Contact Details|
Registered Office: MNDC, MBP-P-136, Mahape,
Navi Mumbai – 400 710, Maharashtra, India
Phone: +91 022 61501800
Email: firstname.lastname@example.org; Website: www.majescoltd.in
Corporate Identification Number (CIN): L72300MH2013PLC244874
Contact Person: Ms. Varika Rastogi, Company Secretary and Compliance Officer
Phone: +91 022 61501800; Email: email@example.com
Majesco Limited Buyback News
News 2 – Majesco Ltd – Public Announcement
FAQs of Majesco Limited Buyback
What is the Majesco Limited Buyback Period?
Majesco 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. NOVEMBER 27, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. DECEMBER 11, 2020.
What type of buyback is Majesco 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 Majesco Limited Buyback Offer?
Majesco 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 74,70,540 Fully paid up Equity shares, adhering to the buyback price.
When Majesco Limited Buyback offer will start?
As per the released schedule, the Majesco Limited Buyback offer will start on NOVEMBER 27, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Majesco Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of Majesco Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Majesco Limited Buyback. The buyback would close on DECEMBER 11, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Majesco Limited Buyback?
The amount at which the shares are taken back by the company is referred to as Majesco Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.845, the price paid to each eligible shareholder.
What is the record date for Majesco Limited Buyback offer?
Record date of Majesco Limited Buyback is NOVEMBER 13, 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 Majesco Limited Buyback?
Majesco Limited Buyback Size is Rs.631,26,06,300 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 Majesco Limited Buyback?
Objective of the Majesco 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 Majesco Limited Buyback offer?
The designated registrar of Majesco Limited Buyback is KFin Technologies Pvt. Ltd. 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 Majesco Limited Buyback offer?
Manager to the Majesco Limited Buyback is Kotak Mahindra Capital Company 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 Majesco 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 Majesco 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 Majesco Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Majesco Limited Buyback Dates.
What can be the Impact of Majesco 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 Majesco 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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