Polyplex Corporation Buyback Review, Offer Details, Price, Dates, Size & more

In this article, they will discuss about Polyplex Corporation Limited Buyback offer, buyback price, buyback size, Polyplex Corporation Buyback record date, company financial, buyback necessity and its impact on company.

Polyplex Corporation Limited Buyback Details

Buyback TypeOpen Market
Opening DateApril 16, 2020
Closing DateOctober 15, 2020
Buyback Offer AmountRs.5,481.50 Lakhs
Buyback No. of Shares5,77,000
Face ValueRs.10
Date of Buyback ApprovalApril 9, 2020
Date of Public AnnouncementApril 11, 2020.
Buy Back PriceRs.475
Buy Back Premium49.04%
Date of Board MeetingApril 9, 2020

Polyplex Corporation Buyback Opening and Closing Date

The starting and closing date of this buyback is from April 16, 2020 to October 15, 2020.

Polyplex Corporation Buyback Cash Offer

Cash Offer to Buy-back up to 5,77,000 fully paid-up equity shares of the Company of face value of Rs.10 each, being 9.9924% and 2.3949% of the total paid-up share capital and free reserves of the Company.

Polyplex Corporation Buyback Record Date

The decided record date is [●].

Polyplex Corporation Buyback Price

At a price of Rs.475 per Equity Share.

Polyplex Corporation Buyback Size

At a buyback price of Rs.475 payable in cash for an aggregate maximum amount of Rs.5,481.50 Lakhs.

Polyplex Corporation 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.


Polyplex Corporation 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%20047595000160004.05%
40%400475190000320008.10%
60%6004752850004800012.15%
80%8004753800006400016.20%
100%10004754750008000020.25%

Profit is calculated from March 16, 2020 share price i.e. Rs.395.00 per share of Polyplex Corporation Limited.

According to the above table, if a shareowner applies for 1000 shares of Polyplex Corporation limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.475 per share & receive Rs.16000 as profit amount & 4.05% 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.475 & receive a profit of Rs.48000 @ 12.15% profit percentage.


Polyplex Corporation Limited Buyback Overview

Polyplex Corporation BuybackPolyplex Corporation Limited was incorporated on October 18, 1984. The company CIN is L25209UR1984PLC011596. Polyplex Corporation Limited is one of the leading global plastic film producers.

The Company is engaged in the core business of manufacturing Biaxially Oriented Polyester (BOPET) Film for flexible packaging, electrical and other industrial applications products. Their BOPET film capabilities include both thin and thick PET film in a wide range of thickness and surface properties covering a spectrum of applications.

Their diversified global business portfolio includes BOPET, BOPP, Blown PP/PE and CPP films produced in plants in India, Thailand, Turkey, USA and Indonesia. Integrated downstream capabilities of Metallizing, Holography, Silicone Coating, Offline Chemical Coating, Extrusion Coating and Transfer Metallized Paper deliver further value-added/speciality products. The Equity Shares of Company are presently listed on BSE and NSE.


Company Finances – Polyplex Corporation Limited

The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the 6 months ended December 31, 2019 are provided below:

[In Rs. Lakhs]

ParticularsFor the period ended Dec 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income340060473343361651332177
Total Expenses (excluding Interest, depreciation)266362383852307817275828
Finance Cost1331290839434702
Depreciation and Amortization17044209101850119663
Profit before tax55323656733139037612
Provision for tax
(including Deferred Tax)
8088730729781473
Profit /(Loss) after tax47235583662841236139
Equity Share Capital3256.323256.32*3256.323256.32
ReservesNA225628.87207523.39194179.14
NetworthNA229161.73210551.73197485.04
Total DebtNA78573.6286234.3881011.50

Polyplex Corporation Limited Buyback Dates

Date of Board Meeting approving the BuybackApril 9, 2020
Date of publication of Public Announcement for BuybackApril 13, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders[●]
Buyback Opening dateApril 16, 2020
Buyback Closing dateOctober 15, 2020
Last Date of verification of Tender Forms by the Registrar[●]
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar[●]
*Last date of Settlement of Bids on the BSE Limited[●]
Last date of return of unaccepted Equity Shares by BSE Limited[●]
*Last date of Extinguishment of Equity Shares[●]

Details of Public Announcement

This public announcement (the “Public Announcement”) is made in relation to the buy-back of equity shares (as defined below) by Polyplex Corporation Limited (the “Company”) from BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”) (together, the “Stock Exchanges”), pursuant to the provisions of Regulation 16(iv) (a) read with Regulation 16(iv)(b) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the “SEBI Buy-Back Regulations”), and contains the disclosures as


Necessity of Polyplex Corporation Limited Buyback

The Company’s management strives to increase the Equity Shareholders’ value and the Buyback would result in the following benefits, amongst other things:

(a) optimize returns to shareholders;

(b) enhance overall shareholders value; and

(c) optimize the capital structure. The Company will implement the Buyback out of its Free Reserves through utilization of cash, sale of liquid investments held and internal accruals of the Company.


Impact of Polyplex Corporation Limited Buyback on the Company

The Buy-back is not likely to cause any material impact on the earnings of the Company, except a reduction in the investment income, which the Company could have otherwise earned on the amount distributed towards the Buy-back.

The Buy-back of Equity Shares will result in a reduction in share capital and consequently, is expected to be EPS accretive. Company believes that the Buy-back will contribute to the overall enhancement of shareholders’ value going forward.

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)
Return on Net worth (%)
Earnings Per Share Basic (Rs)
Earnings Per Share Diluted (Rs)
Book Value per Share (Rs)
Total Debt / Equity Ratio

Basis of Calculating Polyplex Corporation Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.475/- (Rupees Four Hundred and Seventy Five only)per Equity Share.

The Maximum Buy-back Price is at a premium of 49.04% and 49.11% over the closing prices on BSE Limited (“BSE”) (i.e. Rs.318.70 (Rupees Three Hundred Eighteen and paisa Seventy only) and the National Stock Exchange of India Limited (“NSE”) (i.e. Rs.318.55 (Rupees Three Hundred and Eighteen and paisa Fifty Five only), respectively, on April 3, 2020 which is one trading day prior to the date on which the notice of the Board Meeting to consider the Buy-back proposal was intimated to the BSE and the NSE.

Maximum Buy-back Price is at a premium of 42.90% and 42.99%, compared to the average of the weekly high and low of the closing prices of the Equity Shares of the Company on the Stock Exchanges during the 2 (two) weeks preceding the date of the Board Meeting on BSE and NSE respectively.


Source of Funds for the Buyback

The Company proposes to implement the Buy-back out of its free reserves. The amount required by the Company for the Buy-back (including the cost of financing the Buy-back and the Transaction Costs) will be through utilization of cash, sale of liquid investments held and internal accruals of the Company.

It is proposed to Buy-back up to 9.9924% and 2.3949% of the paid-up share capital and free reserves based on the audited financial statements of the Company as at March 31, 2019 on standalone and consolidated basis respectively, from the open market through the Stock Exchanges.


Polyplex Corporation Limited – Manager to the Buyback

AXIS CAPITAL LIMITED

1st Floor, Axis House, C-2 Wadia International Centre, P. B. Marg, Worli
Mumbai – 400 025, Maharashtra, India
Tel.: +91 22 4325 2183
Fax: +91 22 4325 3000
Contact Person: Mr. Ankit Bhatia
Email: polyplex.buyback@axiscap.in
Website: www.axiscapital.co.in
SEBI Registration Number: INM000012029


Polyplex Corporation Limited – Registrar to the Buyback

KFin Technologies Private Limited
(Formerly known as “Karvy Fintech Private Limited”)
Selenium Tower- B, Plot No 31 & 32 Gachibowli,
Financial District Nanakramguda,
Serilingampally, Hyderabad, Telangana – 500032
Tel: 91 40 6716 2222
Fax: 91 40 343 1551
Contact person: Mr. M Murali Krishna
Email: einward.ris@kfintech.com
Website: www.kfintech.com
SEBI Registration Number: INR000000221
Corporate Identity Number: U72400TG2017PTC117649

Polyplex Corporation Limited Contact Details

Company Contact Details
Polyplex Corporation Limited
Corporate Identification Number (CIN): L25209UR1984PLC011596
Registered Office: Lohia Head Office,
Distt. Udham Singh Nagar, Uttarakhand, Khatima-262308
Corporate Office: B-37, Sector – 1, Noida – 201 301,
Gautam Budh Nagar, Uttar Pradesh, India
Telephone: +91.120.2443716-19 Fax: +91.120.2443723 & 24
Website: www.polyplex.com • Email: akgurnani@polyplex.com
Company Secretary and Compliance Officer: Mr. Ashok Kumar Gurnani

 


Polyplex Corporation Limited Buyback News

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

News 2 – Polyplex Corporation Ltd – Public Announcement


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