In this article, we will discuss the PBM Polytex Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity and its impact on company.
PBM Polytex Limited Buyback Details
| Buyback Type | Tender Offer |
| Buyback Opening Date | – |
| Buyback Closing Date | – |
| Buyback Offer Amount | Rs. 11,00,00,000/- |
| Buyback No. of Shares | 13,75,000 |
| Face Value | Rs. 10/- |
| Date of Buyback Approval | February 21, 2019 |
| Date of Public Announcement | February 25, 2019 |
| Buy Back Price | Rs. 80/- |
| Buy Back Premium | 5.26% |
PBM Polytex Buyback Opening and Closing Date
The starting and closing date of this buyback is NA.
PBM Polytex Buyback Cash Offer
The Cash Offer to Buy-back up to 13,75,000 (Thirteen Lakh Seventy-Five Thousand) fully paid-up equity shares of the Company of face value of Rs. 10 each.
PBM Polytex Buyback Record Date
The decided record date is Friday, March 08, 2019.
PBM Polytex Buyback Price
At a price of Rs. 80/- (Rupees Eighty Only) per Equity Share.
PBM Polytex Buyback Size
The Buyback is for an aggregate amount not exceeding Rs. 11,00,00,000/- (Rupees Eleven Crore Only).
PBM Polytex 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% | |||||
| 40% | |||||
| 60% | |||||
| 80% | |||||
| 100% |
Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of PBM Polytex Limited.
According to the above table, if a share owner applies for 1000 shares of PBM Polytex limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.56 per share & receive Rs.370 as profit amount & 0.68% 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.56 & receive a profit of Rs.1,110 @ 2.05% profit percentage.
PBM Polytex Limited Buyback Overview
The Company manufactures 100% cotton yarn which is sold indigenously as well as in the export market. The Company owns two modernized spinning mills (one located at District Anand, Gujarat and another located at District Chhindwara, Madhya Pradesh). The Company also generates electricity through Wind Mills and owns 4 (four) Wind Mills located in the state of Gujarat.
The Equity Shares of the Company are listed and traded on BSE Limited under scrip code – 514087.
Company Finances – PBM Polytex Limited
The salient features of the financial information of the Company as extracted from the audited consolidated financial statements for financial year ended March 31, 2018, prepared under Ind AS and from the audited standalone and consolidated financial statements for last 2 financial years ended on March 31, 2017 and March 31, 2016, prepared under erstwhile Indian Generally Accepted Accounting Principles (“IGAAP”) are set out below:
(Rs. in Lakhs)
| CONSOLIDATED | |||
| Particulars | As at and for the year ended | ||
| March 31, 2018 | March 31, 2017 | March 31, 2016 | |
| (Audited) | (Audited) | (Audited) | |
| Total Income | 20,034.38 | 18,281.49 | 19,532.39 |
| Total Expenses (excluding Finance Costs and Depreciation) | 18,927.25 | 16,840.76 | 17,786.11 |
| Finance Cost | 78.21 | 135.01 | 259.45 |
| Depreciation | 343.62 | 352.10 | 384.36 |
| Exceptional Items | — | — | — |
| Profit Before Tax | 315.82 | 953.62 | 1,102.46 |
| Tax Expense | (64.84) | 295.67 | 426.62 |
| Current Year’s share in Profit/ (loss) of Associate Company | – | (307.29) | (137.27) |
| Profit After Tax | 380.66 | 350.66 | 538.57 |
| Other Comprehensive Income | 78.22 | NA | NA |
| Total Comprehensive Income for the Year | 458.88 | NA | NA |
| Equity Share Capital | 812.96 | 812.96 | 812.96 |
| Reserves & Surplus | 10,473.34 | 10,768.17 | 10,417.51 |
| Net worth | 11,286.30 | 11,581.13 | 11,230.47 |
| Total debt (excluding working capital loans) | 363.25 | 608.75 | 923.91 |
PBM Polytex Limited Buyback Dates
| Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares | Thursday, February 21, 2019 |
| Date of publication of Public Announcement for the Buy-back | Monday, February 25, 2019 |
| Record Date for determining the Buy-back Entitlement and the Eligible Shareholders | Friday, March 08, 2019 |
| Buy-back opens on / Buy-back Opening Date | – |
| Buy-back closes on / Buy-back Closing Date | – |
| Last date of verification by Registrar to Buy-back | – |
| Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-back | – |
| Last date of settlement of bids on the Stock Exchange | – |
| Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker | – |
| Last date of extinguishment of Equity Shares bought back | – |
Necessity of PBM Polytex Limited Buyback
The Buy-back is being undertaken by the Company to partly return surplus funds to the equity shareholders of the Company. Additionally, the Buy-back is being undertaken for the following reasons:
- The Buy-back will help the Company to distribute surplus funds to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders;
- The Buy-back, which is being implemented through the Tender Offer as prescribed under the Buy-Back Regulations, would involve a reservation of 15% of the Buy-back Size for small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “Small Shareholders” as defined under Regulation 2(i)(n) of the Buy-Back Regulations;
- The Buy-back may help in improving financial ratios like earnings per share, return on assets and return on equity calculated on the basis of financial statements, by reducing the equity base of the Company; and
- The Buy-back gives an option to the Eligible Shareholders to either choose to participate in the Buy-back and receive cash in lieu of their Equity Shares which are accepted under the Buy-back or choose not to participate in the Buy-back and get a resultant increase in their percentage shareholding in the Company post Buy-back, without additional investment.
Impact of PBM Polytex Limited Buyback on the Company
The Company believes that the Buy-back is not likely to cause any material impact on the profitability/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.
Assuming the response to the Buy-back is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buy-back Entitlement, the percentage of voting rights held by Promoters and Promoter Group and public shareholders may change however, total voting rights held by Promoters and Promoter Group post Buy-back of Equity Shares will not exceed the maximum permissible non-public shareholding.
The exact percentage of voting rights of Promoters and Promoter Group post Buy-back will be dependent upon the overall response to the Buy-back Process/Acceptances.
Further, the Promoters of the Company are already having control over the affairs of the Company and therefore any increase/decrease in voting rights of the Promoters and Promoter Group, if any consequent to Buy-back of Equity Shares, will not result in any change in control over the affairs of the Company and shall be in compliance with the provisions of Takeover Regulations.
The debt-equity ratio immediately on completion of Buy-back shall be in compliance with the permissible limit of 2:1 prescribed under the Act even if the response to the Buy-back is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buy-back Entitlement.
Salient financial parameters consequent to the Buy-back based on the audited standalone and consolidated financial statement for the financial year ended on March 31, 2018, are as under:
| Consolidated | Standalone | |||
| Parameters | Pre Buy- back | Post Buy- back | Pre Buy- back | Post Buy- back |
| Net Worth (Rs. in Lakhs) | 11,286.30 | 10,186.30 | 11,098.07 | 9,998.07 |
| Return on Net Worth (%) | 3.37% | 3.74% | 6.43% | 7.14% |
| Earnings Per Share (EPS) (Basic) (in Rs.) | 4.68 | 5.64 | 8.78 | 10.57 |
| Book Value per share (in Rs.) | 138.84 | 150.82 | 136.52 | 148.03 |
| Price / Earnings Multiple | 17.74 | 14.74 | 9.46 | 7.86 |
| Total Debt / Equity Ratio | 0.07 | 0.07 | 0.07 | 0.08 |
Basis of Calculating PBM Polytex Buyback Price
The Buy-back Price has been arrived at after considering various factors, including but not limited to, the volume weighted average market price of the Equity Shares of the Company on BSE where the Equity Shares of the Company are listed during 3 (three) months and 2 (two) weeks preceding the date of the Board Meeting, closing market price on the date of Board Meeting and the impact on the net worth of the Company.
More on PBM Polytex Buyback Price Calculation
The Buy-back Price of Rs.80 per Equity Share represents:
- Premium of 4.06% over the volume weighted average price of the Equity Shares on the BSE for 3 (three) months preceding the date of Board Meeting held to consider the proposal of the Buy-back;
- Premium of 8.07% over the volume weighted average price of the equity shares on the BSE for 2 (two) weeks preceding the date of Board Meeting held to consider the proposal of the Buy-back;
- Discount of 0.87% over the closing market price of the Equity Shares on BSE as on the date of the Board Meeting held to consider the proposal of the Buy-back.
The closing market price of the Equity Shares as on the date of intimation of the date of the Board Meeting for considering the Buy-back to the Stock Exchange, i.e., on Monday, February 04, 2019 was Rs.76.00. The Buy-back Price of Rs.80 amounts to a premium of 5.26% to the closing market price of the Equity Shares as on the date of intimation of the date of the Board Meeting on BSE.
The Buy-back Price is about 58.60% of the book value per Equity Share of the Company, which is Rs. 136.52 as on March 31, 2018, on standalone basis.
Source of Funds for the Buyback
The Buy-back will be financed out of free reserves, current surplus and/or cash and cash equivalents and/or internal accruals of the Company and/or other permissible sources of funds but not from any borrowed funds.
PBM Polytex Limited – Manager to the Buyback
| Vivro Financial Services Private Limited Address: 607, 608 Marathon Icon, Opp. Peninsula Corporate Park, Off Ganpatrao Kadam Marg, Veer Santaji Lane, Lower Parel, Mumbai – 400 013, Maharashtra, India. Tel.:+91 22 6666 8040 / 41 / 42 Fax: +91 22 6666 8047 E-mail: investors@vivro.net ; Website: www.vivro.net Contact Person(s): Mr. Harish Patel / Mr. Bhargav Parekh SEBI Registration Number: INM000010122 Validity: Permanent CIN: U67120GJ1996PTC029182 |
PBM Polytex Limited – Registrar to the Buyback
| Link Intime India Private Limited Address: C 101, 247 Park, L B S Marg, Vikhroli West, Mumbai – 400 083, Maharashtra, India. Tel. No.: +91 22 4918 6200 Fax: + 91 22 4918 6195 Email: pbmpolytex.buyback@linkintime.co.in; Website: www.linkintime.co.in Contact Person: Mr. Sumeet Deshpande SEBI Registration Number: INR000004058 Validity: Permanent CIN: U67190MH1999PTC118368 |
PBM Polytex Limited Contact Details
| Company Contact Details |
| PBM POLYTEX LIMITED Corporate Identity Number (CIN): L17110GJ1919PLC000495 Registered Office: Opposite Railway Station, Petlad – 388 450, Dist. Anand, Gujarat, India. Phone: +91-2697-224001; Fax: +91-2697-224009; Email: pbmmills@patodiagroup.com; Website: www.pbmpolytex.com; Corporate Office: 8 th Floor, Ram Krishna Chambers, Productivity Road, Alkapuri, Vadodara – 300 007, Gujarat, India. Contact Person: Mr. Mukesh Prajapat, Assistant Company Secretary & Compliance Officer |
PBM Polytex Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
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