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

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

To track the real time share price of this Buyback, click on this link – https://top10stockbroker.com/share-price/mps-share-price/

MPS Limited Buyback Details

Buyback TypeTender Offer
Opening DateWednesday, September 16, 2020
Closing DateTuesday, September 29, 2020
Buyback Offer AmountRs.34,00,00,000
Buyback No. of Shares5,66,666
Face ValueRs.10
Date of Buyback ApprovalAugust 11, 2020
Date of Public AnnouncementAugust 13, 2020
Buy Back PriceRs.600.00
Buy Back Premium120.64%
Date of Board MeetingAugust 11, 2020

MPS Buyback Opening and Closing Date

The starting and closing date of this buyback is from Wednesday, September 16, 2020 to Tuesday, September 29, 2020.

MPS Buyback Cash Offer

Cash Offer to Buy-back up to 5,66,666 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 3.04% of the issued, subscribed and paid-up Equity Shares of the Company.

MPS Buyback Record Date

The decided record date is August 24, 2020.

MPS Buyback Price

At a price of Rs.600 per Equity Share.

MPS Buyback Size

At a buyback price of Rs.600 payable in cash for an aggregate maximum amount of Rs.34,00,00,000.

MPS 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.


MPS 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%2006001200004689012.83%
40%4006002400009378025.65%
60%60060036000014067038.48%
80%80060048000018756051.31%
100%100060060000023445064.14%

Profit is calculated from Sep 10, 2020 share price i.e. Rs.365.55 per share of MPS Limited.

According to the above table, if a shareowner applies for 1000 shares of MPS limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.600 per share & receive Rs.46890 as profit amount & 12.83% 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.600 & receive a profit of Rs.140670 @ 38.48% profit percentage.


MPS Limited Buyback Overview

MPS Limited Buyback

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.


Company Finances – MPS Limited

The brief audited consolidated financial information of the Company for the last three financial years are provided below:

[In Rs. Crores]

Particulars12 Months period ended March 31
(Audited)
202020192018
Total Income290.01387.80351.63
Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items)179.98269.19252.70
Finance Cost0.130.192.15
Depreciation8.0511.0715.37
Profit before tax101.86107.3581.42
Provision for tax
(including Deferred Tax)
31.6531.3121.56
Profit /(Loss) after tax70.2176.0459.86
Equity Share Capital18.62*18.6218.62
Reserve and Surplus401.17450.88339.77
Networth419.79469.50358.39
Total Debt

MPS Limited Buyback Dates

Date of Board Meeting approving the BuybackAugust 11, 2020
Date of publication of Public Announcement for BuybackAugust 13, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersAugust 24, 2020
Buyback Opening dateSeptember 16, 2020
Buyback Closing dateSeptember 29, 2020
Last Date of verification of Tender Forms by the RegistrarOctober 8, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarOctober 8, 2020
*Last date of Settlement of Bids on the BSE LimitedOctober 9, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedOctober 9, 2020
*Last date of Extinguishment of Equity SharesOctober 16, 2020

Details of Public Announcement

The Public Announcement was published on August 13, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution i.e. August 11, 2020:

PublicationLanguageEdition
Financial ExpressEnglishAll Editions
JansattaHindiAll Editions
Makkal KuralTamilChennai

Necessity of MPS 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:

  1. The Buyback is generally expected to improve financial ratios like earnings per share, return on capital employed, return on equity, calculated on the basis of financial statements, by reduction in the equity basis of the Company, thereby leading to long term increase in shareholders’ value);
  2. This Buyback will help in achieving an optimal capital structure;
  3. The Buyback will help the Company to distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing their overall return;

Impact of MPS Limited Buyback on the Company

The Company believes that the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company except a reduction in the current investments.

The Company believes that the Buyback will not in any manner impair its ability to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is likely to result in improvement in EPS and enhance the return on equity.

The Buyback is not expected to 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 financial statement of the Company for the half year ended March 31, 2020 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2020)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in crores)341.88307.88
Return on Net worth (%)15.43%17.14%
Earnings Per Share (Rs)28.3429.23
Book Value per Share (Rs)183.64170.57
Price / Earnings Ratio (P/E)**13.9313.51
Total Debt / Equity RatioNilNil

Basis of Calculating MPS Buyback Price

The Buyback Offer Price being INR 600.00 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 the Stock Exchanges, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the EPS.

The Buyback Price represents

  • premium of 121.45% and 120.64% over the volume weighted average market price of the Equity Shares on NSE and BSE, respectively, during the three months preceding July 29, 2020, being the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback and premium of 85.84% and 85.44% over the closing market price of the Equity Shares on NSE and BSE, respectively, as on July 29, 2020.

The closing market price of the Equity Shares as on the date of intimation of the date of the Board Meeting i.e. July 29, 2020, was INR 322.85 and INR 323.55 on NSE and BSE, respectively.


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilised by the Company for the purpose of the Buyback would be INR 34,00,00,000 (Indian Rupees Thirty Four Crores only) excluding the Transaction Costs.

The funds required for implementation of the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company and/or liquidation of financial instruments held by the Company.

This Company will transfer from its free reserves and/or securities premium account a sum equal to the nominal value of the Equity Shares bought back pursuant to the Buyback to the Capital Redemption Reserve Account and details of such transfer will be disclosed in the subsequent audited financial statements of the Company. The Company has neither raised nor does it intend to raise additional debt in connection with the Buyback.

The Company confirms that the funds for the Buyback will be made available out of its internal accruals and not out of the funds borrowed, if any, from banks and financial institutions.


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


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