Motilal Oswal Buyback Review, Offer Details, Price, Dates, Size & more

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

Motilal Oswal Limited Buyback Details

Buyback TypeOpen Market
Opening DateApril 01, 2020
Closing DateSeptember 30, 2020
Buyback Offer AmountRs.150,00,00,000
Buyback No. of Shares23,07,692
Face ValueRs.1
Date of Buyback ApprovalMarch 21, 2020
Date of Public AnnouncementMarch 24, 2020
Buy Back PriceRs.650
Buy Back Premium8.15%
Date of Board MeetingMarch 21, 2020

Motilal Oswal Buyback Opening and Closing Date

The starting and closing date of this buyback is from April 01, 2020 to September 30, 2020.

Motilal Oswal Buyback Cash Offer

Cash Offer to Buy-back up to 23,07,692 fully paid-up equity shares of the Company of face value of Rs.1 each, representing 7.51 % and 6.64% of the aggregate of the total paid-up capital and free reserves.

Motilal Oswal Buyback Record Date

The decided record date is March 26, 2020.

Motilal Oswal Buyback Price

At a price of Rs.650 per Equity Share.

Motilal Oswal Buyback Size

At a buyback price of Rs.650 payable in cash for an aggregate maximum amount of Rs.150,00,00,000.

Motilal Oswal 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.


Motilal Oswal 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%200650130000218004.03%
40%400650260000436008.06%
60%6006503900006540012.09%
80%8006505200008720016.12%
100%100065065000010900020.15%

Profit is calculated from March 16, 2020 share price i.e. Rs.541 per share of Motilal Oswal Limited.

According to the above table, if a shareowner applies for 1000 shares of Motilal Oswal limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.650 per share & receive Rs.21800 as profit amount & 4.03% 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.650 & receive a profit of Rs.65400 @ 12.09% profit percentage.


Motilal Oswal Limited Buyback Overview

Motilal Oswal Limited BuybackThe Company was incorporated on May 18, 2005 under the Companies Act, 1956 as Motilal Oswal Financial Services Limited. The Equity Shares of the Company are listed on the BSE and NSE since September 11, 2007. Motilal Oswal Securities Limited, wholly owned subsidiary of Motilal Oswal Financial Services Limited, has been amalgamated with the company w.e.f August 21, 2018 pursuant to order dated July 30, 2018, Issued by National Company Law Tribunal, Mumbai.

Motilal Oswal Financial Services Limited is a registered Stock Broker and Depository Participant which along with its subsidiaries offers diversified financial services such as Retail and Institutional broking, Investment banking, Asset Management, Wealth Management, Private equity and Housing finance.


Company Finances – Motilal Oswal Limited

The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the 6 months ended September 30, 2019 are provided below:

[In Rs. Lakhs]

ParticularsFor the period ended Sept 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income65,8581,24,8691,35,89717,634
Total Expenses (excluding Interest, depreciation)37,23873,29073,0851,943
Finance Cost5,98210,4289,2883,638
Depreciation and Amortization1,4641,8012,942694
Profit before tax21,17439,35050,5828,571
Provision for tax
(including Deferred Tax)
(354)6,98710,674(59)
Profit /(Loss) after tax21,52732,36339,9078,630
Equity Share Capital1,4731,473*1,4731,473
Reserves2,85,0272,57,8992,36,69365,473
Total Debt1,41,6201,41,9511,25,95045,759

Motilal Oswal Limited Buyback Dates

Date of Board Meeting approving the BuybackMarch 21, 2020
Date of publication of Public Announcement for BuybackMarch 24, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders[●]
Buyback Opening dateApril 01, 2020
Buyback Closing dateSeptember 30, 2020
Last Date of verification of Tender Forms by the Registrar[●]
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar[●]
*Last date of Settlement of Bids on the BSE Limited[●]
Last date of return of unaccepted Equity Shares by BSE Limited[●]
*Last date of Extinguishment of Equity Shares[●]

Details of Public Announcement

This public announcement (the “Public Announcement”) is being made in relation to the Buyback (as defined hereinafter) of Equity Shares (as defined hereinafter) of Motilal Oswal Financial Services Limited (the “Company”) from the open market through stock exchange mechanism, pursuant to the provisions of Regulation 16(iv)(b) and other applicable provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (including any statutory modification(s) or amendment(s) from time to time) (the “Buyback Regulations”) and contains the disclosures as specified in Schedule IV to the Buyback Regulations.


Necessity of Motilal Oswal Limited Buyback

The Company’s management strives to increase the Equity Shareholders’ value and the Buyback would result in the following benefits, amongst other things:

(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;

(ii) This Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value; and

(iii) The Buyback gives an option to the shareholders 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 not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.


Impact of Motilal Oswal Limited Buyback on the Company

The Buyback is expected to enhance overall long-term shareholders’ value for continuing shareholders, without compromising on the future growth opportunities of the Company, as well as provide an exit opportunity to the public shareholders.

This Buyback is not likely to cause any material adverse impact on the earnings of the Company, except a reduction in the treasury income which the Company could have otherwise earned from investments in fixed deposits and mutual funds. The Company will also bear the cost of the Buyback transaction.

The Buyback is proposed, considering the accumulated surplus funds available with the Company being in excess of the surplus amount needed to be retained by the Company for future growth of the Company as envisaged by the Board.

This Buyback will lead to reduction in existing Equity Shares and consequently, is expected to improve the ‘earnings per share’ and enhance return on equity, assuming that the Company would earn similar profits as in the past.

Ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice the paid-up capital and free reserves post the Buyback based on both audited standalone and consolidated financial statements of the Company.

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)
Return on Net worth (%)
Earnings Per Share Basic (Rs)
Earnings Per Share Diluted (Rs)
Book Value per Share (Rs)
Total Debt / Equity Ratio

Basis of Calculating Motilal Oswal Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.650/- (Rupees Six Hundred and Fifty Only)

Maximum Buyback Price of INR 650/- per Equity Share has been arrived at after considering various factors, including average of the weekly high and low of the closing price of the Equity Shares of the Company on the Stock Exchanges during the 2 weeks preceding the date of the Board Meeting, the net worth of the Company and the potential impact of the Buyback on the earnings per share and other similar ratios of the Company.

The Buyback Price represents

  • A premium of 8.01% and 8.15% over the closing prices on both NSE and BSE respectively, on March 17, 2020 i.e., one trading day prior to the date on which the notice of the Board Meeting to consider the Buyback proposal was intimated to NSE and BSE.
  • The Maximum Buyback Price represents a premium of 2.65% and 2.98% compared to the average of the weekly high and low of the closing prices of the Equity Shares on NSE and BSE, respectively, during the 2 (two) weeks preceding the date of the Board Meeting.

Ratio of the aggregate of secured and unsecured debts owed by the Company after Buyback shall not be more than twice the paid-up capital and free reserves based on both audited standalone and consolidated financial statements of the Company.


Source of Funds for the Buyback

The actual number of Equity Shares bought back will depend upon the actual price, excluding the Transaction Costs, paid for the Equity Shares bought back, and the aggregate consideration paid in the Buyback, subject to the Maximum Buyback Size.

The Company shall utilize at least 50% of the Maximum Buyback Size towards the Buyback and the Company will accordingly purchase an indicative minimum of 11,53,846 (Eleven Lakh Fifty Three Thousand Eight Hundred and Forty Six) Equity Shares, based on the Maximum Buyback Price.

The amount required by the Company for the Buyback (including the cost of financing the Buyback and the Transaction Costs) will be funded out of the internal accruals of the Company including free reserves of the Company.


Motilal Oswal Limited – Manager to the Buyback

CENTRUM CAPITAL LIMITED
Centrum House, CST Road, Vidyanagari Marg,
Kalina, Santacruz (East),
Mumbai – 400098. Maharashtra
Tel No.: +91 22 4215 9000 | Fax No.: +91 22 4215 9444
E-mail: mosl.buyback@centrum.co.in;
Website: https://www.centrum.co.in/
Contact Persons: Gunjan Chauhan/ Bhavin Ranawat
Investor Grievance E-mail: igmbd@centrum.co.in
SEBI Registration No.: INM000010445
Validity: Permanent (unless suspended or cancelled by SEBI)
CIN: L65990MH1977PLC019986

Motilal Oswal Limited – Registrar to the Buyback

LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083, Maharashtra, India
Telephone: +91 22 4918 6200 | Fax: +91 22 4918 6195
Email: parab.turpti@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Trupti Parab
SEBI Registration No: INR000004058
Validity: Permanent (unless suspended or cancelled by SEBI)
CIN: U67190MH1999PTC118368

Motilal Oswal Limited Contact Details

Company Contact Details
Motilal Oswal Financial Services Limited
CIN: L67190MH2005PLC153397
Registered Office: Motilal Oswal Tower, Rahimtullah Sayani Opposite
Parel ST Depot, Prabhadevi, Mumbai-400025.
Tel. No.: +91 22-7193 4200 | Fax No.: +91 22-50362365
E-mail: shareholders@motilaloswal.com
Website: https://www.motilaloswalgroup.com/
Company Secretary and Compliance Officer: Kailash Purohit

 


Motilal Oswal Limited Buyback News

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

News 2 – Motilal Oswal Ltd – Public Announcement


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