NIIT Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 18, 2022In this article, we will discuss about NIIT Limited Buyback offer, buyback price, buyback size, NIIT 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 – NIIT Share Price
NIIT Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date |
April 12, 2021
|
| Closing Date |
April 28, 2021
|
| Buyback Offer Amount | Rs.2,370 MILLION |
| Buyback No. of Shares | 9,875,000 |
| Face Value | Rs. 2 |
| Date of Buyback Approval | December 24, 2020 |
| Date of Public Announcement | February 15, 2021 |
| Buy Back Price | Rs.240 |
| Buy Back Premium | 39.13% |
| Date of Board Meeting | December 24, 2020 |
NIIT Limited Buyback Opening and Closing Date
The starting and closing date of this buyback is April 12, 2021 and April 28, 2021.
NIIT Limited Buyback Cash Offer
The Cash Offer to Buy-back up to 9,875,000 fully paid-up equity shares of the Company of face value of Rs.2 each, representing 6.978% of the total number of equity shares.
NIIT Limited Buyback Record Date
The decided record date is February 24, 2021.
NIIT Limited Buyback Price
At a price of Rs.240 per Equity Share.
NIIT Limited Buyback Size
At a buyback price of Rs.240/- payable in cash for an aggregate consideration not exceeding Rs.2,370 MILLION.
NIIT 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.
NIIT 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 | 240 | 48000 | 10200 | 5.40% |
| 40% | 400 | 240 | 96000 | 20400 | 10.79% |
| 60% | 600 | 240 | 144000 | 30600 | 16.19% |
| 80% | 800 | 240 | 192000 | 40800 | 21.59% |
| 100% | 1000 | 240 | 240000 | 51000 | 26.98% |
Profit is calculated from 05 April, 2021 share price i.e. Rs.189.00 per share of NIIT Limited.
According to the above table, if a shareowner applies for 1000 shares of NIIT Limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.240 per share & receive Rs.10200 as profit amount & 5.40% 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.240 & receive a profit of Rs.30600 @ 16.19% profit percentage.
NIIT Limited Buyback Overview
*NIIT Limited having CIN L74899DL1981PLC015865, was initially incorporated as a private company under the Companies Act, 1956 on December 2, 1981 and was changed to public limited company vide fresh certificate of incorporation dated November 16, 1990 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana.
NIIT Limited is a leading Skills and Talent Development Company which has three lines of business – Corporate Learning Group, Skills & Careers Group and School Learning Group. With a footprint in over 30 countries, these business lines, offer training and development solutions to Enterprises, Individuals and Institutions.
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Company Finances – NIIT Limited
The salient features of the financial information of the Company for 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 standalone basis are given below:
[In Rs. Lakhs]
| Particulars | December 31, 2020 | 12 Months period ended March 31 | ||
| 2020 | 2019 | 2018 | ||
| Total Income | 75,332 | 100,598 | 87,136 | 85,909 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 57,123 | 80,795 | 78,657 | 78,263 |
| Interest | 515 | 1,662 | 1,954 | 1,937 |
| Depreciation and amortization expenses | 4,321 | 5,980 | 3,292 | 4,011 |
| Profit before tax | 13,263 | 141,329 | 12,652 | 8,375 |
| Provision for tax (including Deferred Tax) |
2,334 | 5,556 | 2,713 | 2,007 |
| Profit /(Loss) after tax | 9,671 | 132,718 | 8,720 | 6,368 |
| Equity Share Capital | 2,836 | 2,830 | 3,347 | 3,332 |
| Other Equity | – | 149,245 | 79,967 | 68,968 |
| Networth | – | 96,292 | 28,350 | 18,938 |
| Total Debt (Excluding working capital loans) | – | 8,404 | 20,663 | 17,802 |
NIIT Ltd Buyback Dates
| Date of Board Meeting approving the Buyback | December 24, 2020 |
| Date of publication of Public Announcement for Buyback | February 16, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | February 24, 2021 |
| Buyback Opening date | April 12, 2021 |
| Buyback Closing date | April 28, 2021 |
| Last date of receipt of completed tender form and other specified document | April 30, 2021 |
| Last Date of verification of Tender Forms by the Registrar | May 6, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | May 6, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | May 7, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | May 7, 2021 |
| *Last date of Extinguishment of Equity Shares | May 14, 2021 |
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated February 15, 2021 for the Buyback of Equity Shares published on February 16, 2021 in the following newspapers:
| Publication | Language | Edition |
| Financial Express | English | All editions |
| Jansatta | Hindi | All editions |
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Necessity of NIIT Limited Buyback
Buyback is a capital allocation decision taken by the Company for the following reasons:
i. The Buyback is being done to return surplus funds, after taking into account the strategic and operational cash needs of the Company in the short to medium term;
ii. Buyback would help to improve financial ratios, including return on equity and earnings per share, due to reduction in the equity capital, leading to increase in long term value for shareholders.
Impact of NIIT Limited Buyback on the Company
Buyback is not likely to cause any material impact on the profitability or 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.
The Buyback shall not result in a change in control or otherwise affect the existing management structure of the Company.
Post completion of the Buyback, the debt-equity ratio of the Company, both on a standalone basis and a consolidated basis will not be greater than twice the aggregate of the total paid-up Equity Share capital and free reserves, as of the Audited Financial Statements.
We believe that the Buyback is not expected to have any adverse impact on the Company’s business in ordinary course, growth opportunities for the Company or on any future growth opportunities which the Company pursues.
The Company shall not issue new shares or other specified securities including by way of a bonus issue till the expiry of the Buyback Period.
Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2020 are as under:
| 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 Lakhs) | 103,371 | 79,671 |
| Return on Net worth (%) | 132.37 | 171.75 |
| Earnings Per Share (Rs) | 85.42 | 91.03 |
| Book Value per Share (Rs) | 73.05 | 60.52 |
| P/E as per the latest audited standalone financial statements | 0.96 | 0.90 |
| Total Debt / Equity Ratio | 0.02 | 0.03 |
Basis of Calculating NIIT Limited Buyback Price
The Equity Shares of the Company are proposed to be bought back at a price of Rs.240/- per Equity Share.
Buyback Price has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices and closing price of the Equity Shares on BSE and NSE where the Equity Shares of the Company are listed.
More on NIIT Limited Buyback Price Calculation
The Buyback Price represents:
- Premium of 39.13% and 38.29% over the closing price of the Equity Share on BSE and NSE, respectively , as on December 21, 2020, being the date on which the Company intimated to the Stock Exchanges of the date of the Meeting of the Board of Directors, wherein proposal of the Buyback was considered.
- Premium of 33.87% and 33.90% to the volume weighted average market price of the Equity Share on BSE and NSE, respectively, during the two weeks preceding the date of intimation to the Stock Exchanges of the date of the Meeting of the Board of Directors wherein proposal of the Buyback was considered.
- *Premium of 33.37% and 33.46% to the volume weighted average market price of the Equity Share on BSE and NSE, respectively, during the one month preceding the date of intimation to the Stock Exchanges of the date of the Meeting of the Board of Directors wherein proposal of the Buyback was considered.
- Premium of 47.81% and 46.40% to the volume weighted average market price of the Equity Share on BSE and NSE, respectively, during the two months preceding the date of intimation to the Stock Exchanges of the date of the Meeting of the Board of Directors wherein proposal of the Buyback was considered.
- Premium of 19.76% and 19.73% over the closing price of the Equity Share on BSE and NSE, respectively, as on December 24, 2020, being the date of the Meeting of the Board of Directors wherein proposal of the Buyback was considered.
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Source of Funds for the Buyback
Assuming full acceptance, the funds for the implementation of the proposed Buyback will be sourced out of the free reserves of the Company (retained earnings) and/or such other source as may be permitted by the Buyback Regulations or the Companies Act, 2013.
The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares so bought back to the Capital Redemption Reserve Account and details of such transfer shall be disclosed in its subsequent audited financial statements.
NIIT Limited – Manager to the Buyback
| JM FINANCIAL LIMITED 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025 Tel: +91 22 6630 3030 Fax: +91 22 6630 3330 Contact Person: Ms. Prachee Dhuri Email: niit.buyback@jmfl.com Website: www.jmfl.com Corporate Identity Number: L67120MH1986PLC038784 SEBI Registration Number: INM000010361 Validity Period: Permanent |
NIIT Limited – Registrar to the Buyback
|
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, LBS Marg, Vikhroli (West), Mumbai – 400083 Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 Contact Person: Mr. Sumeet Deshpande Email: niit.buyback@linkintime.co.in Website: www.linkintime.co.in Corporate Identity Number: U67190MH1999PTC118368 SEBI Registration Number: INR000004058 Validity Period: Permanent |
NIIT Limited Contact Details
| Company Contact Details |
| NIIT Limited
Registered Office: 8, Balaji Estate, First Floor, Guru Ravi Das Marg, Kalkaji New Delhi – 110019; |
NIIT Limited Buyback News
News 1 – NIIT Buyback PDF / Letter of Offer [Download]
News 2 – NIIT Limited Ltd – Public Announcement
FAQs of NIIT Limited Buyback
What is the NIIT Limited Buyback Period?
NIIT Limited 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. February 12, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. May 7, 2021.
What type of buyback is NIIT Limited Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. 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 NIIT Limited Buyback Offer?
NIIT Limited Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 9,875,000 Fully paid up Equity shares, adhering to the buyback price.
When NIIT Limited Buyback offer will start?
As per the released schedule, the NIIT Limited Buyback offer will start on April 12, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of NIIT Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of NIIT Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of NIIT Limited Buyback. The buyback would close on April 28, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for NIIT Limited Buyback?
The amount at which the shares are taken back by the company is referred to as NIIT Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.240, the price paid to each eligible shareholder.
What is the record date for NIIT Limited Buyback offer?
Record date of NIIT Limited Buyback is February 24, 2021. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of NIIT Limited Buyback?
NIIT Limited Buyback Size is Rs.2,370 MILLION 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 NIIT Limited Buyback?
Objective of the NIIT Limited 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 NIIT Limited Buyback offer?
The designated registrar of NIIT Limited Buyback is LINK INTIME INDIA PRIVATE 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 to the NIIT Limited Buyback offer?
Manager to the NIIT Limited Buyback is JM FINANCIAL LIMITED. 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 NIIT Limited buyback acceptance ratio?
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 buyback 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 NIIT Limited 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 NIIT Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as NIIT Limited Buyback Dates.
What can be the Impact of NIIT Limited 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. The 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 NIIT Limited 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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