MPS Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, they will discuss MPS Limited Buyback offer, buyback price, buyback size, MPS Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – MPS Share Price
MPS Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [●] |
| Closing Date | [●] |
| Buyback Offer Amount | Rs.85,00,00,000 |
| Buyback No. of Shares | 9,44,444 |
| Face Value | Rs.5 |
| Date of Buyback Approval | October 27, 2021 |
| Date of Public Announcement | [●] |
| Buy Back Price | Rs.900 |
| Buy Back Premium | 5.23% |
| Date of Board Meeting | October 27, 2021 |
MPS Buyback Opening and Closing Date
The starting and closing date of this buyback are [●] and [●].
MPS Buyback Cash Offer
The Cash Offer to Buy-back up to 9,44,444 fully paid-up equity shares of the Company of the face value of Rs.5 each, representing 5.23% of the total number of equity shares.
MPS Buyback Record Date
The decided record date of this buyback is December 17, 2021.
MPS Buyback Price
At a price of Rs.900 per Equity Share.
MPS Buyback Size
At a buyback price of Rs.900/- payable in cash for an aggregate consideration not exceeding Rs.85,00,00,000/-.
MPS Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
MPS Limited 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 | 550 | 110000 | 27720 | 6.74% |
| 40% | 400 | 550 | 220000 | 55440 | 13.48% |
| 60% | 600 | 550 | 330000 | 83160 | 20.21% |
| 80% | 800 | 550 | 440000 | 110880 | 26.95% |
| 100% | 1000 | 550 | 550000 | 138600 | 33.69% |
Profit is calculated from 05 April 2021 share price i.e. Rs.411.40 per share of MPS.
According to the above table, if a shareowner applies for 1000 shares of MPS & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.550 per share & receive Rs.27720 as profit amount & 6.74% 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.83160 @ 20.21% profit percentage.
MPS Limited Buyback Overview
The Company provides platforms and services for content creation, full-service production, and distribution to the world’s leading publishers, learning companies, corporate institutions, libraries, and content aggregators.
This Company offers a diverse geographic spread with production facilities in Chennai, Noida, Dehradun, Gurugram and Bengaluru. The Company also operates with editorial and marketing offices in United States.
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Company Finances – MPS
The salient features of the financial information of the Company for the last three financial years as at and for the financial year ended March 31, 2020, March 31, 2019, and March 31, 2018, and as at and for the nine months period ended December 31, 2020, on consolidated as well as a standalone basis are given below:
[In Rs. million]
| Particulars | December 31, 2020 | 12 Months period ended March 31 | ||
| 2020 | 2019 | 2018 | ||
| Total Income | 22,496.29 | 30,407.96 | 25,250.05 | 21,426.48 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 20,946.73 | 28,047.12 | 23,602.02 | 19,874.57 |
| Interest | 549.42 | 756.36 | 475.43 | 465.54 |
| Depreciation and amortization expenses | 310.51 | 534.79 | 295.10 | 305.27 |
| Profit before tax | 689.63 | 1,069.69 | 877.50 | 772.78 |
| Provision for tax (including Deferred Tax) |
194.30 | 206.41 | (315.11) | 42.67 |
| Profit /(Loss) after tax | 495.33 | 863.28 | 1,192.61 | 730.11 |
| Equity Share Capital | 737.55 | 733.19 | 733.13 | 731.84 |
| Reserve and Surplus | 7,281.94 | 6,846.52 | 6,550.97 | 5,332.67 |
| Net-worth | 8,019.49 | 7,579.71 | 7,284.10 | 6,064.51 |
| Total Debt (Excluding working capital loans) | 6,555.58 | 6,544.16 | 4,916.45 | 2,262.54 |
MPS Ltd Buyback Dates
| Date of Board Meeting approving the Buyback | October 27, 2021 |
| Date of publication of Public Announcement for Buyback | [●] |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | December 17, 2021 |
| Buyback Opening date | [●] |
| Buyback Closing date | [●] |
| Last date of receipt of the completed tender form and other specified documents | [●] |
| 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
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated March 22, 2021, for the Buyback of Equity Shares published on March 24, 2021, in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Aaj | Hindi | Patna edition |
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Necessity of MPS Buyback
The Buyback is being undertaken, inter-alia, for the following reasons:
(i) The Buyback 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 shareholders;
(ii) The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of the number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the 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 shareholder” as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
(iii) The Buyback may help in improving its return on equity, by the reduction in the equity base, thereby leading to a long term increase in shareholders’ value; and
(iv) 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 MPS Buyback on the Company
The Buyback is not likely to cause any material impact on the profitability/ earnings of the Company, except to the extent of reduction of in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
The Buyback is not expected to impact growth opportunities for the Company. 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.
| Parameter (based on Audited Condensed Financial Statements as at and for the period ended June 30, 2020 | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in million) | 7,579.71 | 6,579.71 |
| Return on Net worth (%) | 11.39% | 13.12% |
| Earnings Per Share (Rs) | 5.89 | 5.96 |
| Book Value per Share (Rs) | 51.69 | 45.43 |
| P/E as per the latest audited standalone financial statements (BSE) | 71.30 | 70.45 |
| Total Debt / Equity Ratio | 0.86 | 0.99 |
Basis of Calculating MPS Buyback Price
The Equity Shares of the Company are proposed to be bought back at a price of INR 900/- per Equity Share.
The Buyback Offer Price has been arrived at, after considering various factors such as the average closing prices of the Equity Shares of the Company on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) (BSE and NSE collectively referred to as “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 Buyback Offer Price represents:
(a) Premium of 30.20% and 34.91% over the volume-weighted average market price of the Equity Shares on NSE and BSE, respectively, during the three months preceding February 10, 2021, being the date of intimation to NSE and BSE for the Board Meeting to consider the proposal of the Buyback (“Intimation Date”).
(b) Premium of 34.10% and 36.28% over the volume-weighted average market price of the Equity Shares on NSE and BSE, respectively, for two weeks, preceding the Intimation Date.
(c) Premium of 34.29% and 34.11% over the closing price of the Equity Shares on NSE and BSE, respectively, as on the Intimation Date.
(d) Premium of 30.35% and 30.83% over the closing price of the Equity Shares on NSE and BSE, respectively, as of February 9, 2021, being the day preceding the Intimation Date.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback of up to 18,18,181 Equity Shares at a price of INR 900/- per Equity Share would be an aggregate maximum amount of INR 85,00,00,000/- excluding the Transaction Costs.
The Buyback would be financed out of the free reserves and/ or securities premium account and/or such other sources or by such mechanisms, as may be permitted by applicable laws.
The Company shall transfer from its free reserves or securities premium account and/ or such sources as may be permitted by law, a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the capital redemption reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statement. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
MPS Limited – Manager to the Buyback
| Ernst & Young Merchant Banking Services LLP 14th Floor, The Ruby, 29 Senapati Bapat Marg, Dadar West, Mumbai – 400028, India Tel: +91-22-6192 0000; Fax: +91-22-6192 1000 Website: www.ey.com/india; Email: mps.buyback2020@in.ey.com Investor grievance e-mail: investorgrievances@in.ey.com Contact Person: Mr. Chintan Hefa SEBI Registration No.: INM000010700 |
MPS Limited – Registrar to the Buyback
|
Cameo Corporate Services Limited
Subramanian Building, 1 Club House Road, Chennai – 600 002, Tamil Nadu, India Tel No.: +91 44 4002 0700 / 0710 / 2846 0390; Fax No.: +91 44 2846 0129; Website: www.cameoindia.com Email: priya@cameoindia.com Investor grievance e-mail: investor@cameoindia.com Contact Person: Ms.Sreepriya K SEBI Registration No.: INR000003753 |
MPS Limited Contact Details
| Company Contact Details |
| MPS LIMITED CIN: L22122TN1970PLC005795 Registered Office: RR Towers IV, Super A, 16/17, Thiru Vi Ka Industrial Estate, Guindy, Chennai-600 032, Tamil Nadu, India Tel. No.: +91-44 -49162222 | Fax No.: +91-44-49162225 Corporate Office: C-35, Sector-62, Noida – 201307, Uttar Pradesh, India E-mail: investors@mpslimited.com | Website: www.mpslimited.com Company Secretary: Mr. Sunit Malhotra, Chief Financial Officer Compliance Officer: Ms. Shiwani Dayal |
MPS Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – MPS Ltd – Public Announcement
FAQs of MPS Buyback
What is the MPS Buyback Period?
MPS Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. NA. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
What type of buyback is MPS Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the MPS Buyback Offer?
MPS Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 18,18,181 Fully paid up Equity shares, adhering to the buyback price.
When MPS Buyback offer will start?
As per the released schedule, the MPS Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of MPS Buyback at all times, we ensure you have access to the right data.
When is the closing date of MPS Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of MPS Buyback. The buyback would close on NA. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for MPS Buyback?
The amount at which the shares are taken back by the company is referred to as the MPS Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.900, the price paid to each eligible shareholder.
What is the record date for the MPS Buyback offer?
The record date of MPS Buyback is December 17, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, the letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of MPS Buyback?
MPS Buyback Size is Rs.85,00,00,000 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for MPS Buyback?
The objective of the MPS Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to MPS Buyback offer?
The designated registrar of MPS Buyback is Cameo Corporate Services Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address, and more.
Who is the Manager of the MPS Buyback offer?
Manager to the MPS Buyback is Ernst & Young Merchant Banking Services LLP. The manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check the MPS buyback acceptance ratio?
The acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buy back and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find MPS Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the MPS Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as MPS Buyback Dates.
What can be the Impact of MPS Buyback on the Company?
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. 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. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on MPS Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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