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

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 TypeTender Offer
Opening Date
Monday, November 25,
2019
Closing Date
Friday, December 06,
2019
Buyback Offer AmountRs. 3,350,000,000/-
Buyback No. of Shares26,800,000
Face ValueRs. 2
Date of Buyback ApprovalFriday, October 04, 2019
Date of Public AnnouncementSaturday, October 5, 2019
Buy Back PriceRs. 125/-
Buy Back Premium15.998%
Date of Board MeetingSaturday, 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 RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200125250001000013.33%
40%400125500002000026.67%
60%600125750003000040.00%
80%8001251000004000053.33%
100%10001251250005000066.67%

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.

NIIT LIMITED BUYBACK

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]

ParticularsJune 30, 201912 Months period ended March 31
201920182017
Total Income23,26991,74385,90985,889
Total Expenses (excluding finance cost, depreciation & amortization)18,91583,93678,26378,763
Interest5992,0261,9372,579
Depreciation and amortization expenses1,2793,6064,0114,567
Profit before tax2,4762,1751,698(20)
Provision for tax
(including Deferred Tax)
Profit /(Loss) after tax1,09,0788,7206,3684,209
Equity Share Capital3,3503,3473,3323,315
Other Equity1,88,85679,96768,96865,050
Networth1,37,52328,35018,93814,552
Total Debt (Excluding working capital loans)17,51518,36715,73117,661

NIIT Ltd Buyback Dates

Date of Board Meeting approving the BuybackSaturday, August 10, 2019
Date of publication of Public Announcement for BuybackSaturday, October 5, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersFriday, October 18, 2019
Buyback Opening dateMonday, November 25, 2019
Buyback Closing dateFriday, December 06, 2019
Last date of receipt of completed tender form and other specified documentSunday, December 8, 2019 by 5.00 P.M
Last Date of verification of Tender Forms by the RegistrarTuesday, 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,
2019
*Last date of Settlement of Bids on the BSE LimitedTuesday, December 17, 2019
Last date of return of unaccepted Equity Shares by BSE LimitedTuesday, December 17, 2019
*Last date of Extinguishment of Equity SharesTuesday, 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:

PublicationLanguageEdition
Financial ExpressEnglishAll editions
JansattaHindiAll 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, 2019Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)1,46,9211,13,421
Return on Net worth (%)79.26%102.67%
Earnings Per Share (Rs)69.5382.78
Book Value per Share (Rs)87.7180.60
P/E as per the latest audited standalone financial statements1.481.24
Total Debt / Equity Ratio0.140.18

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 Buyback Details


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: [email protected]
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: [email protected]
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;
Tel. No.: +91-11-41675000; Fax: +91-11-41407120; E-mail: [email protected];
Corporate Office: Plot No. 85, Sector 32, Institutional Area, Gurugram – 122001, Haryana;
Contact Person: Mr. Deepak Bansal, Company Secretary and Compliance Officer;
Tel. No.: +91 124 4293 000; Fax: +91 124 4293 333; E-mail: [email protected];
Corporate Identity Number: L74899DL1981PLC015865

 


NIIT Limited Buyback News

News 1 – NIIT Buyback PDF / Draft Letter of Offer [Download]

News 2 – NIIT Limited Ltd – Public Announcement

News 3 – NIIT Buyback PDF / Letter of Offer [Download]

News 4 – Blank Demat Tender Form


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