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

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

MOIL Limited Buyback Details

Buyback TypeTender Offer
Opening DateDecember 26, 2019
Closing DateJanuary 8, 2020
Buyback Offer AmountRs.3,08,27,13,368/-
Buyback No. of Shares2,02,81,009
Face ValueRs.10
Date of Buyback ApprovalNovember 14, 2019
Date of Public AnnouncementNovember 15, 2019
Buy Back PriceRs.152/-
Buy Back Premium17.92%
Date of Board MeetingNovember 14, 2019

MOIL Buyback Opening and Closing Date

The starting and closing date of this buyback is December 26, 2019 to January 8, 2020.

MOIL Buyback Cash Offer

The Cash Offer to Buy-back up to 2,02,81,009 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 7.87% of the total number of equity shares.

MOIL Buyback Record Date

The decided record date is Wednesday, November 27, 2019.

MOIL Buyback Price

At a price of Rs.152 (Rupees One Hundred Fifty Two Only) per Equity Share.

MOIL Buyback Size

At a buyback price of Rs.152 payable in cash for an aggregate consideration not exceeding Rs.3,08,27,13,368 (Rupees Three Hundred Eight Crore Twenty Seven Lakh Thirteen Thousand Three Hundred Sixty Eight Only).

MOIL 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.


MOIL 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%2001523040020001.41%
40%4001526080040002.82%
60%6001529120060004.23%
80%80015212160080005.63%
100%1000152152000100007.04%

Profit is calculated from 28 Nov 2019 share price i.e. Rs.139 per share of MOIL Limited.

According to the above table, if a share owner applies for 1000 shares of MOIL limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.152 per share & receive Rs.2000 as profit amount & 1.41% 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.152 & receive a profit of Rs.6000 @ 4.23% profit percentage.


MOIL Limited Buyback Overview

MOIL Limited Buyback

The Company was incorporated on June 22, 1962 as a public limited company with the RoC under the name Manganese Ore (India) Limited under the provisions of the Companies Act.

Subsequently, the name of the Company was changed from Manganese Ore (India) Limited to MOIL Limited and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on August 17, 2010.

Presently, the Company‟s registered office is situated at MOIL Bhawan, 1-A, Katol Road, Nagpur-440013, Maharashtra. The Registered Office of the Company, at the time of incorporation, was situated at 3 Mount Road, Extension, PB NO 34, Nagpur, Maharashtra and was changed to its existing location on August 10, 2007.

The Board of Directors of MOIL Limited on November 14, 2019 passed a resolution to buy-back Equity Shares of the Company not exceeding 2,02,81,009. On a proportionate basis, through the “Tender Offer” process, at a price of Rs.152 (Rupees One Hundred Fifty Two only) per Equity Share payable in cash, for an aggregate consideration not exceeding of Rs 3,08,27,13,368


Company Finances – MOIL Limited

The salient financial information of the Company, as extracted from the standalone audited financial statements for last three financial years viz. 2019, 2018 and 2017 and unaudited financial results for six months period ended September 30, 2019 is detailed below:

[In Rs. Lakhs]

Particulars6 Months12 Months period ended March 31
(Audited)
Sept 30, 20192019 March20182017
Total Income635.141631.481501.181210.97
Total Expenses (excluding finance cost, depreciation & amortization)339.28844.90790.81694.36
Interest0.000.00*0.000.00
Depreciation and amortization expenses51.3166.8262.4554.71
Profit before tax244.55719.75647.92461.90
Provision for tax
(including Deferred Tax)
65.26245.86225.93156.07
Profit /(Loss) after tax179.29473.89421.99305.83
Equity Share Capital257.61*257.61257.61133.19
Other EquityNANA*NANA
Net worth3157.473082.712799.202805.35
Total Debt (Excluding working capital loans)0.00*0.00*0.000.00

MOIL Limited Buyback Dates

Date of Board Meeting approving the BuybackNovember 14, 2019
Date of Public Announcement for BuybackNovember 15, 2019
Date of publication of Public Announcement for BuybackNovember 18, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersNovember 27, 2019
Buyback Opening dateDecember 26, 2019
Buyback Closing dateJanuary 8, 2020
Last Date of verification of Tender Forms by the RegistrarJanuary 13, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarJanuary 15, 2020
Last date of Settlement of Bids on the BSE LimitedJanuary 16, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedJanuary 16, 2020
Last date of Extinguishment of Equity SharesJanuary 20, 2020

Details of Public Announcement

In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated November 15, 2019 for the Buyback of Equity Shares published on November 18, 2019 in the following newspapers:

PublicationLanguageEdition
Business StandardEnglish & HindiAll editions
Nava BharatHindiBhopal, Chhindwara, Jabalpur
Maharashtra TimesMarathiNagpur

Necessity of MOIL Limited Buyback

The Buyback is being undertaken 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;
  • This 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”;
  • The Buyback would help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • 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.
  • Optimizes the capital structure.

Impact of MOIL Limited Buyback on the Company

Assuming there is full response to the Buyback to the extent of 100%, the funds deployed by the Company towards the Buyback would be Rs.3,08,27,13,368. This shall impact the investment income earned by the Company, on account of reduced amount of funds available for investments.

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.

The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.

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 

StandaloneConsolidated
Pre Buy-back
Post Buy-back
Pre Buy-backPost Buy-back
Net worth (Rs in Crores)3082.712774.443082.712774.44
Return on Net worth (%)15.3715.3715.5217.25
Earnings Per Share (Rs)18.4019.9718.5720.16
Book Value per Share (Rs)119.67116.90119.67129.89
P/E as per the latest audited standalone financial statements8.637.958.547.87
Total Debt / Equity Ratio0.00*0.000.000.00

Basis of Calculating MOIL Buyback Price

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

  • This Buyback Offer Price of Rs.152 (Rupees One Hundred Fifty Two 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 closing market price of the Equity Shares as on the date of intimation to the BSE and NSE for the Board Meeting for considering the Buyback i.e. November 4, 2019, was Rs.140.35 and Rs.140.25 on BSE and NSE, respectively.

More on MOIL Buyback Price Calculation

The Buyback Offer Price of.Rs 152 per Equity Share represents

(i) a premium of 17.92% on BSE and 14.70% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE respectively for 3 months preceding the date of Board Meeting to consider the proposal of the Buyback

(ii) premium of 6.95% on BSE and 5.93% on NSE over the volume weighted average price of the equity Shares on BSE and NSE respectively for 2 weeks preceding the date of Board Meeting to consider the proposal of the Buyback;

(iii) premium of 8.30% on BSE and 8.38% on NSE over the closing market price of the Equity Shares on BSE and NSE on day of intimation to BSE and NSE.


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 2,02,81,009 Equity Shares at a price of Rs.152/- per Equity Share would be Rs.3,08,27,13,368.

This Buyback shall be made out of the free reserves of the Company as at March 31, 2019 (i.e. the last audited standalone and consolidated financial statements available as on the date of Board Meeting recommending the proposal of the Buyback).

The funds for the Buyback will be met out of internally generated cash resources of the Company. 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.


MOIL Limited – Manager to the Buyback

Manager to the Buyback
IDBI CAPITAL MARKETS & SECURITIES LIMITED
6th Floor, IDBI Tower, WTC Complex, Cuffe Parade,
Mumbai – 400 005, Maharashtra, India
Contact person: Anusha Shetty/ Kiran Dhembre
Tel: +91 (22) 2217 1700
Fax: 91 (22) 2215 1787
Email: moilbuyback2019@idbicapital.com
Website: www.idbicapital.com
SEBI Registration No.: INM000010866
Validity Period: Permanent Registration
CIN: U65990MH1993GOI075578

MOIL Limited – Registrar to the Buyback

Registrar to the Buyback
BIGSHARE SERVICES PRIVATE LIMITED
1st Floor, Bharat Tin Works Building Opposite Vasant Oasis,
Makwana Road, Marol, Andheri East, Mumbai – 400 059
Contact Person: Ashish Bhope
Tel.: +91 (22) 6263 8200
Fax.: +91 (22) 6263 8280
Email: buybackoffer@bigshareonline.com
Website: www.bigshareonline.com
SEBI Registration Number: INR000001385
Validity Period: Permanent Registration
CIN: U99999MH1994PTC076534

MOIL Limited Contact Details

Company Contact Details
MOIL LIMITED
(A Government of India Enterprise)
Registered & Corporate Office: MOIL Bhawan, 1- A, Katol Road, Nagpur – 440013, Maharashtra.
CIN: L99999MH1962GOI012398
Contact Person: Shri Neeraj Dutt Pandey, Company Secretary & Compliance Officer
Tel: 0712 – 2806208 / 182 | Fax: 0712 – 2591661 | Email: compliance@moil.nic.in | Website: www.moil.nic.in

 


MOIL Limited Buyback News

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

News 2 – MOIL Ltd – Public Announcement


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