Metroglobal Limited Buyback – Review, Offer Details, Price, Dates & more

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

Metroglobal Limited Buyback Details

Buyback Type Tender Offer
Buyback Opening Date May 14, 2019
Buyback Closing Date May 27, 2019
Buyback Offer Amount Rs. 22,40,00,000/-
Buyback No. of Shares 40,00,000
Face Value Rs. 10
Date of Buyback Approval March 30, 2019
Date of Public Announcement April 02, 2019
Buy Back Price Rs. 56
Buy Back Premium 1.71%

Metroglobal Buyback Opening and Closing Date

The starting and closing date of this buyback is from May 14, 2019 to May 27, 2019.

Metroglobal Buyback Cash Offer

The Cash Offer to Buy-back up to 40,00,000 (Forty Lakhs) fully paid-up equity shares of the Company of face value of Rs. 10 each.

Metroglobal Buyback Record Date

The decided record date is Friday, April 12, 2019.

Metroglobal Buyback Price

At a price of Rs. 56 (Rupees Fifty Six Only) per Equity Share.

Metroglobal Buyback Size

For an aggregate amount not exceeding Rs. 22,40,00,000 (Rupees Twenty Two Crores Forty Lakhs Only)  excluding cost such as fees, brokerage, securities transaction tax, goods and services tax, stamp duty, etc.

As required under the Buy-back Regulations, Equity Shares to be bought back are divided into two categories: (i) reserved category for Small Shareholders (as defined hereinafter); and (ii) general category for all other shareholders.


Metroglobal Buyback Acceptance Ratio

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

Acceptance Ratio Total Shares Accepted Buyback Price Buyback Amount Profit Profit%
20% 200 56 11200 370 0.68%
40% 400 56 22400 740 1.37%
60% 600 56 33600 1110 2.05%
80% 800 56 44800 1480 2.73%
100% 1000 56 56000 1850 3.42%

Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of Metroglobal Limited.

According to the above table, if a share owner applies for 1000 shares of Metroglobal limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.56 per share & receive Rs.370 as profit amount & 0.68% 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.56 & receive a profit of Rs.1,110 @ 2.05% profit percentage.


Metroglobal Limited Buyback Overview

METROGLOBAL LIMITED buybackThe Company was originally incorporated as “Chromo Boards and Papers India Limited” on November 12, 1992 under the Companies Act, 1956.

The name of the Company was subsequently changed to “Global Boards Limited” vide fresh certificate of incorporation consequent on change of name dated October 11, 1993 issued by the Registrar of Companies, Maharashtra, Mumbai.

Further changed to “Metroglobal Limited” vide fresh certificate of incorporation consequent on change of name dated September 08, 2011 issued by the Registrar of Companies, Maharashtra, Mumbai.

The Company is engaged in the business of trading of various items, i.e. Chemicals, Plastics, Textiles etc. and also into Realty business. The Equity Shares of the Company are listed and traded on BSE Limited under scrip code – 500159.


Company Finances – Metroglobal Limited

As per audited standalone financial statements for the financial years ended March 31, 2018, 2017 and 2016, the
Company recorded total income of Rs. 33,874.88 Lakhs, Rs. 35,214.81 Lakhs and Rs. 35,919.72 Lakhs respectively,
and Profit after Tax of Rs.1,770.57 Lakhs, Rs.1,501.96 Lakhs and Rs.1,556.00 Lakhs respectively.

As per limited review unaudited standalone financial results for nine months period ended on December 31, 2018, the Company recorded total income of Rs. 29,313.37 Lakhs and Profit after Tax of Rs. 1,015.86 Lakhs.

CONSOLIDATED
Particulars March 31,
2018
(Audited)
March 31,
2017
(Audited)
March 31,
2016
(Audited)
Total Income 33,893.90 35,232.59 35,937.42
Total   Expenses   (excluding   Finance   Costs   and
Depreciation)
31,384.46 33,332.39 33,842.62
Finance Cost 154.35 118.26 101.73
Depreciation 18.09 12.59 21.21
Exceptional Items 0 0 0
Profit  Before Tax 2,337.00 1,769.35 1,971.86
Tax Expense 550 418 400
Profit After Tax 1,787.00 1,350.95 1,571.86
Other Comprehensive Income 9.50 Not Applicable Not Applicable
Total Comprehensive Income for the Year 1,796.50 Not Applicable Not Applicable
Equity Share Capital 1,632.67 1,632.67 1,632.67
Reserves & Surplus* 27,491.70 25,638.63 24,340.99
Net worth* 29,124.37 27,271.30 25,973.66
Total debt (excluding working capital loans) 4,442.31 6,348.42 5,507.79

 


Metroglobal Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares Saturday, March 30, 2019
Date of publication of Public Announcement for the Buy-back Tuesday, April 02, 2019
Record Date for determining the Buy-back Entitlement and the Eligible Shareholders Friday, April 12, 2019
Buy-back opens on / Buy-back Opening Date Tuesday, May 14, 2019
Buy-back closes on / Buy-back Closing Date Monday, May 27, 2019
Last date of verification by Registrar to Buy-back Tuesday, June 04, 2019
Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-back Tuesday, June 04, 2019
Last date of settlement of bids on the Stock Exchange Thursday, June 06, 2019
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker Thursday, June 06, 2019
Last date of extinguishment of Equity Shares bought back Thursday, June 13, 2019


Necessity of Metroglobal Limited Buyback

The Buy-back is being undertaken by the Company to partly return surplus funds to the equity shareholders of the Company. Additionally, the Buy-back is being undertaken for the following reasons:

  • The Buy-back will help the Company to distribute surplus funds to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders;
  • The Buy-back, which is being implemented through the Tender Offer as prescribed under the Buy-Back Regulations, would involve a reservation of 15% of the Buy-back Size for 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 Shareholders” as defined under Regulation 2(i)(n) of the Buy-Back Regulations;
  • The Buy-back may help in improving financial ratios like earnings per share, return on assets and return on equity calculated on the basis of financial statements, by reducing the equity base of the Company; and
  • The Buy-back gives an option to the Eligible Shareholders to either choose to participate in the Buy-back and receive cash in lieu of their Equity Shares which are accepted under the Buy-back or choose not to participate in the Buy-back and get a resultant increase in their percentage shareholding in the Company post Buy-back, without additional investment.

Impact of Metroglobal Limited Buyback on the Company

The Company believes that the Buy-back is not likely to cause any material impact on the profitability / 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 Buy-back is 100% (full acceptance) from all the Eligible Shareholders in proportion of their respective Buyback Entitlement, the funds deployed by the Company towards the Buy-back would be Rs. 2,240 Lakhs excluding Transaction Costs.

The debt-equity ratio immediately on completion of Buy-back shall be in compliance with the permissible limit of 2:1 prescribed under the Act even if the response to the Buy-back is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buy-back Entitlement.

Consolidated Standalone
Parameters Pre Buy-
back
Post Buy-
back
Pre Buy-
back
Post Buy-
back
Net Worth (Rs. in Lakhs) 29,124.37 26,884.37 29,256.69 27,016.69
Return on Net Worth (%) 6.14% 6.65% 6.05% 6.55%
Earnings Per Share (EPS) (Basic) (in Rs.) 11.00 14.57 10.90 14.44
Book Value per share (in Rs.) 178.38 218.10 179.19 219.17
Price / Earnings Multiple 6.96 5.26 7.03 5.30
Total Debt / Equity Ratio 0.23 0.25 0.23 0.25

Basis of Calculating Metroglobal Buyback Price

The Equity Shares are proposed to be bought back at a price of Rs. 56 (Rupees Fifty Six only) per Equity Share. The Buy-back Price has been arrived at after considering various factors, including but not limited to, the volume weighted average market price of the Equity Shares of the Company on BSE during 3 (three) months and 2 (two) weeks preceding the date of the Board Meeting and closing market price on the date prior to Board Meeting date.

The Buy-back Price represents a premium of 1.71% over the volume weighted average market price of the Equity Shares on BSE for 3 (three) months preceding the date of the Board Meeting which was Rs. 55.06 and 6.05% over the volume weighted average market price of the Equity Shares on BSE for 2 (two) weeks preceding the date of the Board Meeting which was Rs. 52.80. The closing market price of the Equity Shares as on the date prior to Board Meeting date was Rs. 54.25 on BSE.

The closing market price of the Equity Shares as on the date of intimation of the date of the Board Meeting for considering the Buy-back to the Stock Exchange, i.e., on Wednesday, March 27, 2019 was Rs. 44.30.

More on Metroglobal Buyback Price Calculation

The Buyback Price of Rs. 56 amounts to a premium of 26.41% to the closing market price of the Equity Shares as on the date of intimation of the date of the Board Meeting on BSE.

The Buy-back Price is about 31.25% and 31.39% of the book value per Equity Share of the Company, which is Rs. 179.19 and Rs. 178.38 as at March 31, 2018 on standalone basis and consolidated basis, respectively.

The EPS of the Company pre Buy-back as on March 31, 2018 on standalone basis and consolidated basis is Rs. 10.90 and Rs. 11.00 respectively which will increase to Rs. 14.44 and Rs. 14.57, respectively, post Buy-back assuming full acceptance of the Buy-back.

The Return on Net worth of the Company pre-Buy-back on standalone basis and consolidated basis as on March 31, 2018 is 6.05% and 6.14% respectively which will increase to 6.55% and 6.65% respectively, post Buy-back assuming full acceptance of the Buy-back.


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buy-back would be Rs. 22,40,00,000 (Rupees Twenty Two Crores Forty Lakhs only) excluding Transaction Costs.

The Buy-back will be financed out of free reserves, current surplus and / or cash and cash equivalents and / or internal accruals of the Company and / or other permissible sources of funds but not from any borrowed funds.


Metroglobal Limited – Manager to the Buyback

Vivro Financial Services Private Limited
Address: 607, 608 Marathon Icon, Opp. Peninsula Corporate Park,
Off Ganpatrao Kadam Marg, Veer Santaji Lane,
Lower Parel, Mumbai – 400 013, Maharashtra, India.
Tel.:+91 22 6666 8040 / 41 / 42 Fax: +91 22 6666 8047
E-mail: [email protected] ; Website: www.vivro.net
Contact Person(s): Mr. Harish Patel / Mr. Vatsal Shah
SEBI Registration Number: INM000010122 Validity: Permanent
CIN: U67120GJ1996PTC029182

Metroglobal Limited – Registrar to the Buyback

Link Intime India Private Limited
Address: C 101, 247 Park, L B S Marg, Vikhroli West,
Mumbai – 400 083, Maharashtra, India.
Tel. No.: +91 22 4918 6200 Fax: + 91 22 4918 6195
Email: [email protected];
Website: www.linkintime.co.in
Contact Person: Mr. Sumeet Deshpande
SEBI Registration Number: INR000004058 Validity: Permanent
CIN: U67190MH1999PTC118368

Metroglobal Limited Contact Details

Company Contact Details
METROGLOBAL LIMITED
Corporate Identity Number (CIN): L21010MH1992PLC069527
Registered Office: 101, 1st Floor, “Mangal Disha”, Nr. Guru Gangeshwar Temple, 6th Road, Khar (West) Mumbai – 400052, Maharashtra, India.
Phone: +91-22-26051072, +91-22-26051073;
Email: [email protected]; Website: www.metrogloballimited.com;
Corporate Office: 508-509, “SHILP”, C.G. Road, Navrangpura, Ahmedabad – 380 009, Gujarat.
Phone: +91-79-26468016
Contact Person: Mr. Nitin S. Shah, Company Secretary, Chief Financial Officer & Compliance Officer

 


Metroglobal Limited Buyback News

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


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