Ramkrishna Forgings Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Aug 22, 2022In this article, they will discuss about Ramkrishna Forgings Limited Buyback offer, buyback price, buyback size, Ramkrishna Forgings Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time price of this Buyback, Click on this link – Ramkrishna Forgings Share Price
Ramkrishna Forgings Limited Buyback Details
| Buyback Type | Open Market |
| Opening Date | April 3, 2020 |
| Closing Date | September 27, 2020 |
| Buyback Offer Amount | Rs.40,00,00,000/- |
| Buyback No. of Shares | 1600000 |
| Face Value | Rs.10 |
| Date of Buyback Approval | March 21, 2020 |
| Date of Public Announcement | March 24, 2020 |
| Buy Back Price | Rs.250 |
| Buy Back Premium | 21.27%% |
| Date of Board Meeting | March 20, 2020 |
Ramkrishna Forgings Buyback Opening and Closing Date
The starting and closing date of this buyback is from April 3, 2020 to September 27, 2020.
Ramkrishna Forgings Buyback Cash Offer
Cash Offer to Buy-back up to 1600000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 25% of the total number of equity shares.
Ramkrishna Forgings Buyback Record Date
The decided record date is March 26, 2020.
Ramkrishna Forgings Buyback Price
At a price of Rs.250 per Equity Share.
Ramkrishna Forgings Buyback Size
At a buyback price of Rs.250 payable in cash for an aggregate maximum amount of Rs.40,00,00,000.
Ramkrishna Forgings 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.
Ramkrishna Forgings 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 | 250 | 50000 | 19000 | 12.26% |
| 40% | 400 | 250 | 100000 | 38000 | 24.52% |
| 60% | 600 | 250 | 150000 | 57000 | 36.77% |
| 80% | 800 | 250 | 200000 | 76000 | 49.03% |
| 100% | 1000 | 250 | 250000 | 95000 | 61.29% |
Profit is calculated from March 16, 2020 share price i.e. Rs.155 per share of Ramkrishna Forgings Limited.
According to the above table, if a shareowner applies for 1000 shares of Ramkrishna Forgings limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.250 per share & receive Rs.19000 as profit amount & 12.26% 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.250 & receive a profit of Rs.57000 @ 36.77% profit percentage.
Ramkrishna Forgings Limited Buyback Overview
M/s. Ramkrishna Forgings Limited (“RKFL”) was originally incorporated under the provisions of the Companies Act, 1956 on 12.11.1981 as a Private Limited Company under the name and style “Ramkrishna Forgings Private Limited” with the Registrar of Companies, West Bengal. Subsequently, the name of the Company was changed to its present name pursuant to the receipt of the shareholders approval on 25.05.1995.
The Company was incorporated with an objective to manufacture forged products. Over the years, RKFL increased forging and die making capacities and added machining and heat treatment facilities, including isothermal annealing, which enabled to undertake manufacturing of components for Original Equipment Manufacturer [“OEMs”] and Tier 1 companies.
RKFL is head-quartered in Kolkata and operates five manufacturing facilities located in eastern India which offers close proximity to key automobile manufacturing hubs and key suppliers of raw materials.
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Company Finances – Ramkrishna Forgings 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 September 30, 2019 are provided below:
[In Rs. Lakhs]
| Particulars | For the period ended Sept 2019 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2019 | 2018 | 2017 | ||
| Total Income | 64,065.88 | 1,80,967.58 | 1,45,752.02 | 96,019.66 |
| Total Expenses (excluding Interest, depreciation) | 52,046.36 | 1,42,718.74 | 1,16,908.66 | 79,422.25 |
| Finance Cost | 3,787.20 | 7,921.70 | 6,982.03 | 7,497.98 |
| Depreciation and Amortization | 6,097.55 | 12,083.33 | 8,440.21 | 7,472.81 |
| Profit before tax | 2,134.77 | 18,243.81 | 13,421.12 | 1,626.62 |
| Deferred Tax | 232.75 | 2,408.38 | 1,119.36 | 3.18 |
| Profit /(Loss) after tax | 1,418.52 | 11,931.08 | 9,466.02 | 1,092.31 |
| Equity Share Capital | 3,260.77 | 3,260.68 | 3,259.15 | 2,866.99 |
| Reserves | 81,332.16 | 80,483.49 | 69,112.72 | 40,541.77 |
| Networth | 88,138.93 | 87,290.18 | 75,917.88 | 46,954.77 |
| Total Debt | 91,534.24 | 88,149.21 | 82,321.22 | 93,551.88 |
Ramkrishna Forgings Limited Buyback Dates
| Date of Board Meeting approving the Buyback | March 21, 2020 |
| Date of publication of Public Announcement for Buyback | March 24, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | [●] |
| Buyback Opening date | April 3, 2020 |
| Buyback Closing date | September 27, 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 (“Public Announcement”/ “PA”) is being made in relation to the Buyback of Equity Shares of M/s. Ramkrishna Forgings Limited (“Company” or “RKFL”) from the open market through stock exchange mechanism, pursuant to the provisions of Regulation 16(iv)(b) and other applicable provisions of the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (“Buyback Regulations”) and, inter-alia, contains the disclosures as specified in Schedule IV to the Buyback Regulations.
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Necessity of Ramkrishna Forgings 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 above objectives will be achieved by returning part of surplus cash back to members through the Buyback process. This will lead to reduction in outstanding Equity Shares, improvement in earnings per share, based on the assumption that the Company would earn similar profits as in the past, and enhanced return on equity capital.
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.
Impact of Ramkrishna Forgings Limited Buyback on the Company
The Buyback is expected to enhance overall long term members’ value for continuing members, without compromising on the future growth opportunities of the Company, as well as provide an exit opportunity to the public shareholders.
The Buyback is not likely to cause any material adverse impact on the earnings of the Company, except a reduction in the treasury income which the Company could have otherwise earned from investments in fixed deposits and mutual funds.
This Buyback is proposed, considering the accumulated surplus funds available with the Company being in excess of the surplus amount needed to be retained by the Company for future growth of the Company as envisaged by the Board.
The Buyback may lead to reduction in outstanding Equity Shares, improvement in ‘earnings per share’ and enhanced return on equity, assuming that the Company would earn similar profits as in the past.
In accordance with Section 68(2)(d) of the Companies Act, the ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice the paid up Equity Share capital and free reserves post the Buyback.
The Company shall not raise further capital for a period of 1 (one) year from the expiry of the Buyback Period, except in discharge of its subsisting obligations like allotment of shares under Employee Stock Option Schemes etc.
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-back | Post 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 Ramkrishna Forgings Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.250/-(Rupees Two Hundred Fifty Only) per Equity Share.
The Maximum Buyback Price of Rs. 250/- per Equity Share has been arrived at after considering various factors, including but not limited to, the average of the weekly high and low of the closing price of the Equity Shares on NSE (the recognized Stock Exchange where the maximum volume of trading in the equity shares is recorded) for a period of 2 weeks preceding the date of Board Meeting i.e., till 20.03.2020), the net worth and performance of the Company. The Maximum Buyback Price excludes the Transaction Costs.
The Buyback Price represents
- A premium of 1.07% and 21.27% compared to the average of the weekly high and low of the closing prices of the Equity Shares on the NSE (the recognized Stock Exchange where the maximum volume of trading in the equity shares is recorded), for a period of 2 weeks preceding the date of intimation of the Board Meeting i.e., till 17.03.2020) and for a period of 2 weeks preceding the date of Board Meeting i.e., till 20.03.2020) respectively.
The ratio of the aggregate of secured and unsecured debts owed by the Company after Buyback shall not be more than twice the paid-up capital and free reserves based on both audited standalone and consolidated financial statements as at 31.03.2019 of the Company.
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Source of Funds for the Buyback
The actual number of Equity Shares bought back will depend upon the actual price paid for the Buyback, excluding the Transaction Costs paid for the Equity Shares bought back, and the aggregate amount paid in the Buyback, subject to the Maximum Buyback Size.
The Buyback (including the Transaction Costs) will be funded from the accumulated surplus funds available with the Company, in the form of cash and/ or out of internal accruals of the Company.
It is proposed to Buyback upto 4.81% and 4.82% 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. The Buyback of Equity Shares will result in a reduction in number of shares accompanied by a likely increase in EPS and return on capital employed. The Company believes that the Buyback will create long term value for continuing shareholders.
Ramkrishna Forgings Limited – Manager to the Buyback
| VC CORPORATE ADVISORS PRIVATE LIMITED, CIN: U67120WB2005PTC106051 SEBI REGN. NO.: INM000011096 Validity of Registration: Permanent (Contact Person: Ms. Urvi Belani) 31, Ganesh Chandra Avenue, 2nd Floor, Suite No. -2C, Kolkata-700 013 Tel. No.: 033 2225 3940 Fax No.: 033 2225 3941 Email Id: mail@vccorporate.com Website: www.vccorporate.com |
Ramkrishna Forgings Limited – Registrar to the Buyback
|
M/s. KFin Technologies Private Limited
(Formerly known as“Karvy Fintech Private Limited”),
Office: Karvy Selenium, Tower- B, Plot No. 31 & 32,
Financial district, Nanakramguda, Serilingampally Mandal, Hyderabad, Telangana- 500032 SEBI Registration No. INR000000221, CIN: U72400TG2017PTC117649, Tel. No.: 040 – 67161568; Fax No.: 040- 23420833;
Contact Person:Mr. M S Madhusudan, E-mail Id: madhusudan.ms@kfintech.com;
Website: www.kfintech.com.
|
Ramkrishna Forgings Limited Contact Details
| Company Contact Details |
| Ramkrishna Forgings Limited CIN No.: L74210WB1981PLC034281; Registered Office: 23, Circus Avenue, Kolkata- 700017; Tel. No.: (033) 4082 0900 / 7122 0900; Fax No.: (033) 4082 0998 / 7122 0998; E-mail Id: neha.gupta@ramkrishnaforgings.com; Website: www.ramkrishnaforgings.com |
Ramkrishna Forgings Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – Ramkrishna Forgings Ltd – Public Announcement
FAQs of Ramkrishna Forgings Buyback
What is the Ramkrishna Forgings Buyback Period?
Ramkrishna Forgings 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. April 3, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. September 27, 2020.
What type of buyback is Ramkrishna Forgings Buyback?
This company has chosen the route of Open Market to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e.Open Market Through Stock Exchanges.
What is the Ramkrishna Forgings Buyback Offer?
Ramkrishna Forgings Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 1600000 Fully paid up Equity shares, adhering to the buyback price.
When Ramkrishna Forgings Buyback offer will start?
As per the released schedule, the Ramkrishna Forgings Buyback offer will start on April 3, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Ramkrishna Forgings Buyback at all times, we ensure you have access to the right data.
When is the closing date of Ramkrishna Forgings Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Ramkrishna Forgings Buyback. The buyback would close on September 27, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Ramkrishna Forgings Buyback?
The amount at which the shares are taken back by the company is referred to as Ramkrishna Forgings Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.Rs.250, the price paid to each eligible shareholder.
What is the record date for Ramkrishna Forgings Buyback offer?
Record date of Ramkrishna Forgings Buyback is March 26, 2020. 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 Ramkrishna Forgings Buyback?
Ramkrishna Forgings Buyback Size is Rs.40,00,00,000 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 Ramkrishna Forgings Buyback?
Objective of the Ramkrishna Forgings 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 Ramkrishna Forgings Buyback offer?
The designated registrar of Ramkrishna Forgings Buyback is M/s. KFin Technologies 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 Ramkrishna Forgings Buyback offer?
Manager to the Ramkrishna Forgings Buyback is VC CORPORATE ADVISORS PRIVATE 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 Ramkrishna Forgings 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 Ramkrishna Forgings 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 Ramkrishna Forgings Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Ramkrishna Forgings Buyback Dates.
What can be the Impact of Ramkrishna Forgings 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 Ramkrishna Forgings 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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