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 Type||Tender Offer|
|Buyback Opening Date||March 19, 2019|
|Buyback Closing Date||April 02, 2019|
|Buyback Offer Amount||Rs. 55,00,00,000/-|
|Buyback No. of Shares||10,00,000|
|Face Value||Rs. 10/-|
|Date of Buyback Approval||November 30, 2018|
|Date of Public Announcement||February 08, 2019|
|Buy Back Price||Rs. 550/-|
|Buy Back Premium||127.27%|
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 Ratio||Total Shares Accepted||Buyback Price||Buyback Amount||Profit||Profit%|
Profit is calculated from 18th Feb 2019 share price i.e. Rs.381 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.550 per share & receive Rs.33800 as profit amount & 8.87% 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.550 & receive a profit of Rs.101400 @ 26.61% 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:
|Particulars||6 Months period ended|
|12 Months period ended March 31|
|September 30, 2018||2018||2017||2016|
|Revenue from Operations||18,503.58||64,639.05||58,538.08||62,153.05|
|Total Expenses (excluding finance cost, depreciation &|
|Depreciation and amortization expenses||932.95||2,096.28||2,473.69||2,927.10|
|Profit before tax||2,158.32||8,986.14||6,471.29||9,010.24|
|Provision for tax|
(including Deferred Tax)
|Profit /(Loss) after tax||1,316.62||5,972.14||4,415.64||5893.84|
|Equity Share Capital (A)||2,173.21||2,173.21||2,173.21||2,173.21|
|Other Equity (B)||48,599.25||50,417.58||47,269.35||42,432.74|
|Total Debt (Excluding working capital loans)||1,420.57||1,538.38||3,104.85||6,873.03|
Monte Carlo Fashions Limited Buyback Dates
|Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares||Friday, November 30, 2018|
|Date of publication of Public Announcement for the Buy-back||Monday, February 11, 2019|
|Record Date for determining the Buy-back Entitlement and the Eligible Shareholders||Friday, February 22, 2019|
|Buy-back opens on / Buy-back Opening Date||Tuesday, March 19, 2019|
|Buy-back closes on / Buy-back Closing Date||Tuesday, April 02, 2019|
|Last date of verification by Registrar to Buy-back||Tuesday, 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-back||Tuesday, April 09, 2019|
|Last date of settlement of bids on the Stock Exchange||Wednesday, April 10, 2019|
|Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker||Wednesday, April 10, 2019|
|Last date of extinguishment of Equity Shares bought back||Tuesday, 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:
|Networth (Rs.) (In Lakhs)||52590.79||47090.80|
|Return on Networth (%)||11.36%||12.68%|
|Earnings per Share (Rs.)||27.48||28.81|
|Book Value per Share (Rs.)||242.00||227.14|
|P / E as per the latest audited financial results*||17.07||16.28|
|Total Debt / Equity Ratio||0.11||0.12|
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]
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]
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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