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Monte Carlo Fashions Buyback – Review, Offer Details, Price, Dates & more

In this article, we will discuss the Monte Carlo Fashions Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity and its impact on the company.

Monte Carlo Fashions Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening DateMarch 19, 2019
Buyback Closing DateApril 02, 2019
Buyback Offer AmountRs. 55,00,00,000/-
Buyback No. of Shares10,00,000
Face ValueRs. 10/-
Date of Buyback ApprovalNovember 30, 2018
Date of Public AnnouncementFebruary 08, 2019
Buy Back Price Rs. 550/-
Buy Back Premium127.27%

Monte Carlo Fashions Buyback Opening and Closing Date

The starting and closing dates of this buyback are from March 19, 2019, to April 02, 2019.

Monte Carlo Fashions Buyback Cash Offer

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

Monte Carlo Fashions Buyback Record Date

The decided record date is Friday, February 22, 2019.

Monte Carlo Fashions Buyback Price

At a price of Rs. 550/- (Rupees  Five hundred Fifty only) per Equity Share.

Monte Carlo Fashions Buyback Size

The Buyback is for an aggregate amount not exceeding Rs. 55,00,00,000 (Rupees Fifty five Crores only).


Monte Carlo Fashions 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%
40%
60%
80%
100%

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

According to the above table, if a shareowner applies for 1000 shares of Monte Carlo Fashions 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.


Monte Carlo Fashions Limited Buyback Overview

The Company was incorporated as a subsidiary of Oswal Woollen Mills Limited (“OWML”). Subsequently, pursuant to the scheme of arrangement and demerger with OWML as approved by the Punjab and Haryana High Court, through an order dated May 20, 2011.

The business carried out by OWML, comprising the processes of manufacturing, buying, selling, and dealing in knitted and hosiery garments, woolen garments, cotton garments, franchisee network, and other businesses were transferred from OWML to our Company, with effect from April 1, 2011 and our Company ceased to be a subsidiary of OWML.

The Equity Shares of the Company are listed on the BSE (Scrip Code: 538836) and the NSE (Symbol: MONTECARLO) and are permitted to trade under the ISIN: INE950M01013. The Equity Shares are frequently traded in terms.

The Company has a comprehensive range of product across woolen, cotton & cotton blended, knitted and woven
apparels for men, women, kids and home furnishing under the umbrella brand ‘Monte Carlo’.


Company Finances – Monte Carlo Fashions Limited

The salient financial information of the Company, as extracted from the audited statements for the last three financial year ended March 31, 2018, March 31, 2017, and March 31, 2016, and the unaudited financial results (limited reviewed by auditors) for six months ended September 30, 2018, is given below:

(Rs.in Lakhs)

Particulars6 Months period ended
(Un-audited)
12 Months period ended March 31
(Audited)
September 30, 2018201820172016
Revenue from Operations18,503.5864,639.0558,538.0862,153.05
Other Income691.321,768.012,393.191,390.97
Total Income19,194.9066,407.0660,931.2763,544.02
Total Expenses (excluding finance cost, depreciation &
amortization)
15,699.1654,553.0250,811.7149,982.62
Finance Cost404.47771.621,174.581,624.06
Depreciation and amortization expenses932.952,096.282,473.692,927.10
Profit before tax2,158.328,986.146,471.299,010.24
Provision for tax
(including Deferred Tax)
841.703,014.002,055.653,116.40
Profit /(Loss) after tax1,316.625,972.144,415.645893.84
Equity Share Capital (A)2,173.212,173.212,173.212,173.21
Other Equity (B)48,599.2550,417.5847,269.3542,432.74
Networth(1) (A)+(B)50,772.4652,590.7949,442.5644,605.95
Total Debt (Excluding working capital loans)1,420.571,538.383,104.856,873.03

Monte Carlo Fashions Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesFriday, November 30, 2018
Date of publication of Public Announcement for the Buy-backMonday, February 11, 2019
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersFriday, February 22, 2019
Buy-back opens on / Buy-back Opening DateTuesday, March 19, 2019
Buy-back closes on / Buy-back Closing DateTuesday, April 02, 2019
Last date of verification by Registrar to Buy-backTuesday, April 09, 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-backTuesday, April 09, 2019
Last date of settlement of bids on the Stock ExchangeWednesday, April 10, 2019
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / BrokerWednesday, April 10, 2019
Last date of extinguishment of Equity Shares bought backTuesday, April 16, 2019


Necessity of Monte Carlo Fashions Limited Buyback

The proposed Buy-Back is being undertaken for the following reasons:

  • The Buy-Back 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 the Shareholders;
  • The Buy-Back may help in improving return on equity due to a reduction in the equity base, thereby leading to long term increase in Shareholders’ value; and
  • The Buy-Back is given as 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 Buy-Back Offer or choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buy-Back Offer, without additional investment.

Impact of Monte Carlo Fashions Limited Buyback on the Company

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 to the extent of 100% from all the Eligible Shareholders upto their Buy-Back Entitlement, the funds deployed by the Company towards the Buy-Back would not be exceeding Rs. 55,00,00,000 and this will impact the investment income (that could have been earned by the Company), on account of the reduced amount of funds available.

The debt-equity ratio post Buy-Back will be compliant with the permissible limit of 2:1 prescribed under Section 68 of the Companies Act, 2013 even if the response to the Buy-Back is to the extent of 100% (full Acceptance) of the Buy-Back Offer Size. Salient financial parameters consequent to the Buy-Back based on the latest audited results as on March 31, 2018, are as under:

ParametersPre-BuybackPost-Buyback
Networth (Rs.) (In Lakhs)52590.7947090.80
Return on Networth (%)11.36%12.68%
Earnings per Share (Rs.)27.4828.81
Book Value per Share (Rs.)242.00227.14
P / E as per the latest audited financial results*17.0716.28
Total Debt / Equity Ratio0.110.12

Basis of Calculating Monte Carlo Fashions Buyback Price

The Buy-Back Price of ` 550 (Rupees Five Hundred Fifty Only) per Equity Share has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices of the Equity Shares on NSE and BSE, where the Equity Shares are listed, book value of Shares, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buy-Back on the earnings per share.

More on Monte Carlo Fashions Buyback Price Calculation

Premium of 47.37% and 45.60% over the volume weighted average market price of the Equity Shares on BSE and on NSE,
respectively, during three months preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider
the proposal of the Buy-Back.

Premium of 58.92% and 58.13% over the volume weighted average market price of the Equity Shares on BSE and on NSE,
respectively, for two weeks preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the
proposal of the Buy-Back.

The Buy-Back Price is at a premium of about 127.27% to the Company’s book value per Equity Share, which pre Buy-Back,
as on March 31, 2018, is Rs. 242.00.


Source of Funds for the Buyback

The funds for the implementation of the Buy-Back will be financed out of internal accruals of the Company. The ratio of the aggregate of secured and unsecured debts owned by the Company shall not be more than twice the paid-up Equity Share
Capital and free reserves after the Buy-Back.


Monte Carlo Fashions Limited – Manager to the Buyback

EMKAY GLOBAL FINANCIAL SERVICES LIMITED
Contact Person: Mr. Deepak Yadav/ Mr. Chirag Dave
Regd. Off.: 7th Floor, The Ruby, Senapati Bapat Marg,
Dadar-West, Mumbai-400028, Maharashtra.
Tel. No.: +91 22 66121212; Fax No.: +91 22 66121355
Email id: [email protected]
Website: www.emkayglobal.com
SEBI Regn. No.: INM000011229;
Validity Period : Permanent

Monte Carlo Fashions Limited – Registrar to the Buyback

Link Intime India Private Limited
C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli (West),
Mumbai 400 083, Maharashtra, India
Telephone: +91 22 4918 6200; Facsimile: +91 22 4918 6195
Email: [email protected]
Website: www.linkintime.co.in
Contact Person: Mr. Sumeet Deshpande
SEBI registration number: INR000004058
Validity Period: Permanent; CIN: U67190MH1999PTC118368

Monte Carlo Fashions Limited Contact Details

Company Contact Details
Monte Carlo Fashions Limited
Registered Office and Correspondence Address: B-XXIX-106, G.T. Road, Sherpur, Ludhiana – 141 003, India.
Tel No.: 91 161 504 8610/40; Fax: 91 161 504 8650; E-mail: [email protected]
Website: www.montecarlocorporate.com; Corporate Identity Number (CIN): L51494PB2008PLC032059
Contact Person: Mr. Raj Kapoor Sharma, Chief Financial Officer and Compliance Officer

 


Monte Carlo Fashions Limited Buyback News

News 1 – Buyback PDF [Download]


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