Neelamalai Agro Industries Buyback Review, Offer Details, Price, Dates, Size & more
In this article, we will discuss about Neelamalai Agro Industries Limited Buyback offer, buyback price, buyback size, Neelamalai Agro Industries Buyback record date, company financial, buyback necessity and its impact on company.
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Neelamalai Agro Industries Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | February 24, 2021 |
| Closing Date | March 9, 2021 |
| Buyback Offer Amount | Rs.4,05,60,000 |
| Buyback No. of Shares | 25,350 |
| Face Value | Rs.10 |
| Date of Buyback Approval | January 21, 2021 |
| Date of Public Announcement | January 22, 2021 |
| Buy Back Price | Rs.1,600 |
| Buy Back Premium | 24.36% |
| Date of Board Meeting | January 21, 2021 |
Neelamalai Agro Industries Buyback Opening and Closing Date
The starting and closing date of this buyback is from February 24, 2021 to March 9, 2021.
Neelamalai Agro Industries Buyback Cash Offer
Cash Offer to Buy-back up to 25,350 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 9.99% and 2.45% of the fully paid-up Equity Share capital and free reserves of the Company.
Neelamalai Agro Industries Buyback Record Date
The decided record date is February 5, 2021.
Neelamalai Agro Industries Buyback Price
At a price of Rs.1,600 per Equity Share.
Neelamalai Agro Industries Buyback Size
At a buyback price of Rs.1,600 payable in cash for an aggregate maximum amount of Rs.4,05,60,000.
Neelamalai Agro Industries 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.
Neelamalai Agro Industries 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 | 1600 | 320000 | 36500 | 2.57% |
| 40% | 400 | 1600 | 640000 | 73000 | 5.15% |
| 60% | 600 | 1600 | 960000 | 109500 | 7.72% |
| 80% | 800 | 1600 | 1280000 | 146000 | 10.30% |
| 100% | 1000 | 1600 | 1600000 | 182500 | 12.87% |
Profit is calculated from Jan 21, 2021 share price i.e. Rs.1417.50 per share of Neelamalai Agro Industries Limited.
According to the above table, if a shareowner applies for 1000 shares of Neelamalai Agro Industries limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.1600 per share & receive Rs.36500 as profit amount & 2.57% 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.1600 & receive a profit of Rs.109500 @ 7.72% profit percentage.
Neelamalai Agro Industries Buyback Overview
The Company is engaged in Plantation activity and the crop dealt with by the Company is Tea and the main business being Tea cultivation, Tea manufacturing, sales and exports of Tea.
The Company has two estates i.e. Katary & Sutton Estates, located in the Nilgiris District in Tamil Nadu, spanning an area of 635.56 Hectares.
The factory has facilities to produce Orthodox and CTC teas. Good manufacturing practices and HACCP systems are followed in the Tea factory. Currently the company produces 100% Orthodox Tea.
Neelamalai Agro Industries Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Lakhs]
| Particulars | 12 Months period ended March 31 (Audited) | ||
| 2020 | 2019 | 2018 | |
| Total Income | 3,021.67 | 4,114.17 | 3,393.12 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 2,717.24 | 3,461.27 | 2,922.82 |
| Interest | 1.97 | 3.84 | 3.57 |
| Depreciation | 100.09 | 97.60 | 106.65 |
| Profit before tax | 202.37 | 551.46 | 360.08 |
| Profit /(Loss) after tax | 214.80 | 543.21 | 279.69 |
| Equity Share Capital | 62.74 | 62.74 | *62.74 |
| Reserve and Surplus | 4,415.41 | 4,517.14 | 4,130.11 |
| Networth | 4,478.15 | 4,579.88 | 4,192.85 |
| Total Debt | – | – | – |
Neelamalai Agro Industries Limited Buyback Dates
| Date of Board Meeting approving the Buyback | January 21, 2021 |
| Date of publication of Public Announcement for Buyback | January 23, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | February 5, 2021 |
| Buyback Opening date | February 24, 2021 |
| Buyback Closing date | March 9, 2021 |
| Last Date of verification of Tender Forms by the Registrar | March 17, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | March 18, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | March 19, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | March 19, 2021 |
| *Last date of Extinguishment of Equity Shares | March 26, 2021 |
Details of Public Announcement
This is to say, in accordance with Regulation 7(i) of the Buyback Regulations, the Public Announcement was published on January 23, 2021 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All edition |
| Makkal Kural | Tamil | Regional editions |
Necessity of Neelamalai Agro Industries Buyback
The Board of Directors of the Company is of the view that the proposed Buyback will help the Company to achieve the following objectives:
(a) The Buyback gives an option to the equity shareholders, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or they may choose not to participate thereby and enjoy a resultant increase in their percentage shareholding, post the Buyback, without additional investment; and
(b) The Buyback would help in improving certain key financial ratios of the Company. Accordingly, the proposed objectives will be achieved by returning part of surplus cash back to Shareholders through the Buyback process. This may lead to reduction in outstanding Shares, improvement in Earnings per Share and enhanced return on invested capital. Further, 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.
Impact of Neelamalai Agro Industries Buyback on the Company
The Buyback is not likely to cause any material impact on the profitability / earnings of the Company. Assuming there is full response to the Buyback, the funds deployed by the Company towards the Buyback would be Rs. 4,05,60,000 (Rupees Four Crores Five Lacs Sixty Thousand only).
The Buyback is expected to result in overall enhancement of the shareholders’ value and will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations.
The Buyback will not 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 September 30, 2020 are as under:
| Parameters (based on audited standalone financial statements for September 30, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 4,478.15 | 4,072.55 |
| Return on Net worth (%) | 4.80 | 5.27 |
| Earnings Per Share (Rs) | 34.24 | 35.68 |
| Book Value per Share (Rs) | 713.82 | 676.50 |
| Price / Earnings Ratio (P/E)** | 25.06 | 24.05 |
| Total Debt / Equity Ratio | – | – |
Basis of Calculating Neelamalai Agro Industries Buyback Price
The Buyback Price per Equity Share represents a premium of 24.36% over the average closing price of the Company’s Equity Shares on BSE for the three months preceding the Date of Notice of Buyback. The closing price of the Equity Shares on the Date of Notice of Buyback was Rs. 1417.50 on BSE.
The Buyback Price per Equity Share represents a premium of 12.87% over the closing price of the Company’s Equity Shares on the Date of Notice of Buyback.
The closing price of the Equity Shares a trading day before the Date of Notice of Buyback, i.e. January 15, 2021 was Rs. 1,350 on BSE.
Closing price of the Equity Shares on January 21, 2021, being the date of meeting of the Board of Directors approving the Buyback (“Date of Board Meeting”), was Rs. 1417.50 on BSE.
Source of Funds for the Buyback
The Equity Shares shall be bought back at a price of Rs. 1,600/- per Equity Share.
The maximum number of Shares to be bought back in the Buyback is 25350 Equity Shares. The number of Shares to be bought back would constitute 4.04% of the total paid up equity share capital of the Company as per the latest available standalone audited financial statements of the Company for the financial year ended March 31, 2020.
The Company has confirmed that the funds for the Buyback will be made available from the current surplus and / or cash balances and / or internal accruals of the Company.
The Company does not propose raising debt for the explicit purpose of the Buyback. However, the Company may continue to borrow funds in the ordinary course of its business.
The Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements.
Neelamalai Agro Industries Limited – Manager to the Buyback
| Saffron Capital Advisors Private Limited 605, Sixth Floor, Centre Point, Andheri-Kurla Road, J. B. Nagar, Andheri (East), Mumbai – 400 059 Tel No.: +91 22 4082 0914/915; Fax No.: +91 22 4082 0999; E-mail: buybacks@saffronadvisor.com; Website: www.saffronadvisor.com; Investor grievance Id: investorgrievance@saffronadvisor.com; SEBI Registration Number: INM000011211; Contact Person: Mr. Amit Wagle / Mr. Gaurav Khandelwal |
Neelamalai Agro Industries Ltd – Registrar to the Buyback
Cameo Corporate Services Limited “Subramanian Building”, No.1, Club House Road, Chennai – 600 002, Tamilnadu, India Tel: +91 44 4002 0700; Fax: +91 44 2846 0129 Email: investor@cameoindia.com Website: www.cameoindia.com SEBI Registration: INR000003753 Contact Person: Ms. Sreepriya. K |
Neelamalai Agro Industries Ltd Contact Details
| Company Contact Details |
| NEELAMALAI AGRO INDUSTRIES LIMITED (Corporate Identification Number: L01117TZ1943PLC000117) Registered Office: Katary Estate, Katary P.O., Coonoor, The Nilgiris, Nilgiri, Tamil Nadu – 643213, India; Tel. No.: +91 423-2284235; Email: narasimhan.l@avtplantations.co.in; secneelamalai@avtplantations.co.in; Website: www.neelamalaiagro.com Contact Person: Mr. Lakshmi Narasimhan, Company Secretary and Compliance Officer |
Neelamalai Agro Industries Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Neelamalai Agro Industries Ltd – Public Announcement
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