In 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.
NIIT Limited Buyback Details
|Buyback Type||Tender Offer|
Monday, November 25,
Friday, December 06,
|Buyback Offer Amount||Rs. 3,350,000,000/-|
|Buyback No. of Shares||26,800,000|
|Face Value||Rs. 2|
|Date of Buyback Approval||Friday, October 04, 2019|
|Date of Public Announcement||Saturday, October 5, 2019|
|Buy Back Price||Rs. 125/-|
|Buy Back Premium||15.998%|
|Date of Board Meeting||Saturday, August 10, 2019|
NIIT Limited Buyback Opening and Closing Date
The starting and closing date of this buyback is NA.
NIIT Limited Buyback Cash Offer
The Cash Offer to Buy-back up to 26,800,000 fully paid-up equity shares of the Company of face value of Rs. 2 each, representing 15.998% of the total number of equity shares.
NIIT Limited Buyback Record Date
The decided record date is Friday, October 18, 2019.
NIIT Limited Buyback Price
At a price of Rs.125 per Equity Share.
NIIT Limited Buyback Size
At a buyback price of Rs.125/- payable in cash for an aggregate consideration not exceeding Rs.3,350,000,000.
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%|
Profit is calculated from 16 Oct 2019 share price i.e. Rs.75 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.125 per share & receive Rs.10000 as profit amount & 13.33% 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.125 & receive a profit of Rs.30000 @ 40.00 % 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.
For salient features of the financial information of the Company for last three financial years as at and for the financial year ended March 31, 2019, March 31, 2018 and March 31, 2017 and as at and for the three months period ended June 30, 2019 on consolidated as well as standalone basis.
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.
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, 2019, March 31, 2018 and March 31, 2017 and as at and for the three months period ended June 30, 2019 on consolidated as well as standalone basis are given below:
[In Rs. Lakhs]
|Particulars||June 30, 2019||12 Months period ended March 31|
|Total Expenses (excluding finance cost, depreciation & amortization)||18,915||83,936||78,263||78,763|
|Depreciation and amortization expenses||1,279||3,606||4,011||4,567|
|Profit before tax||2,476||2,175||1,698||(20)|
|Provision for tax|
(including Deferred Tax)
|Profit /(Loss) after tax||1,09,078||8,720||6,368||4,209|
|Equity Share Capital||3,350||3,347||3,332||3,315|
|Total Debt (Excluding working capital loans)||17,515||18,367||15,731||17,661|
NIIT Ltd Buyback Dates
|Date of Board Meeting approving the Buyback||Saturday, August 10, 2019|
|Date of publication of Public Announcement for Buyback||Saturday, October 5, 2019|
|Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders||Friday, October 18, 2019|
|Buyback Opening date||Monday, November 25, 2019|
|Buyback Closing date||Friday, December 06, 2019|
|Last date of receipt of completed tender form and other specified document||Sunday, December 8, 2019 by 5.00 P.M|
|Last Date of verification of Tender Forms by the Registrar||Tuesday, December 10, 2019|
|Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar|
Monday, December 16,
|*Last date of Settlement of Bids on the BSE Limited||Tuesday, December 17, 2019|
|Last date of return of unaccepted Equity Shares by BSE Limited||Tuesday, December 17, 2019|
|*Last date of Extinguishment of Equity Shares||Tuesday, December 24, 2019|
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated June 4, 2019 for the Buyback of Equity Shares published on June 5, 2019 in the following newspapers:
|Financial Express||English||All editions|
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.
In the event there is 100% acceptance of the Equity Shares tendered in the Buyback from Eligible Shareholders on a proportionate basis, the funds deployed by the Company towards the Buyback would be ` 3,350,000,000.
Assuming full acceptance of Equity Shares in the Buyback, the aggregate percentage shareholding of the public after the Buyback may change from 68.612% (the shareholding as on the date preceding the date of Public Announcement) to [●]% of the post Buyback Equity Share capital of the Company.
Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2019 are as under:
|Parameter (based on Audited Condensed Financial Statements as at and for the period ended June 30, 2019||Pre Buy-back||Post Buy-back|
(Assuming Full Acceptance)
|Net worth (Rs in Lakhs)||1,46,921||1,13,421|
|Return on Net worth (%)||79.26%||102.67%|
|Earnings Per Share (Rs)||69.53||82.78|
|Book Value per Share (Rs)||87.71||80.60|
|P/E as per the latest audited standalone financial statements||1.48||1.24|
|Total Debt / Equity Ratio||0.14||0.18|
Basis of Calculating NIIT Limited Buyback Price
The Equity Shares of the Company are proposed to be bought back at a price of ` 125/- (Rupees One Hundred and Twenty Five only) 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 40.37% and 39.82% over the closing price of the Equity Share on BSE and NSE, as on August 2, 2019, 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 30.17% and 30.24% 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.
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 Buyback Details:
The Buyback has been authorized by a resolution of the Board on August 10, 2019, and the Equity Shareholders have approved the Buyback by a special resolution passed on October 03, 2019 through postal ballot (including e-voting) in accordance with the provisions of Section 110 of Companies Act and Rule 22 of Management Rules, the results of which were declared on October 04, 2019. The details of the Buyback are provided below:
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
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
Corporate Identity Number: U67190MH1999PTC118368
SEBI Registration Number: INR000004058
Validity Period: Permanent
NIIT Limited Contact Details
|Company Contact Details|
Registered Office: 8, Balaji Estate, First Floor, Guru Ravi Das Marg, Kalkaji New Delhi – 110019;
NIIT Limited Buyback News
News 4 – Blank Demat Tender Form
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