Rishiroop Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Aug 22, 2022In this article, we will discuss Rishiroop Buyback offer, buyback price, buyback size, Rishiroop Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – Rishiroop Share Price
Rishiroop Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | October 5, 2021 |
| Closing Date | October 20, 2021 |
| Buyback Offer Amount | Rs.8,00,00,000 |
| Buyback No. of Shares | 6,40,000 |
| Face Value | Rs.10 |
| Date of Buyback Approval | August 27, 2021 |
| Date of Public Announcement | August 30, 2021 |
| Buy Back Price | Rs.125 |
| Buy Back Premium | 9.67% |
| Date of Board Meeting | August 27, 2021 |
Rishiroop Buyback Opening and Closing Date
The starting and closing date of this buyback are October 5, 2021, and October 20, 2021.
Rishiroop Buyback Cash Offer
The Cash Offer to Buy-back up to 6,40,000 fully paid-up equity shares of the Company of the face value of Rs.10 each, representing 9.67% of the total number of equity shares.
Rishiroop Buyback Record Date
The decided record date of this buyback is September 9, 2021.
Rishiroop Buyback Price
At a price of Rs.125 per Equity Share.
Rishiroop Buyback Size
At a buyback price of Rs.125/- payable in cash for an aggregate consideration not exceeding Rs.8,00,00,000/-.
Rishiroop Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
Rishiroop Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 125 | 25000 | 4200 | 4.04% |
| 40% | 400 | 125 | 50000 | 8400 | 8.08% |
| 60% | 600 | 125 | 75000 | 12600 | 12.12% |
| 80% | 800 | 125 | 100000 | 16800 | 16.15% |
| 100% | 1000 | 125 | 125000 | 21000 | 20.19% |
Profit is calculated from 28 September 2021 share price i.e. Rs.104 per share of Rishiroop.
According to the above table, if a shareowner applies for 1000 shares of Rishiroop & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.125 per share & receive Rs.4200 as profit amount & 4.04% 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.12600 @ 12.12% profit percentage.
Rishiroop Buyback Overview
The Company was incorporated as a Private Company on 24.09.1984 in the name of “Puneet Resins Private Limited”, under the provisions of Companies Act, 1956. It was converted to a public limited company and the name of the Company was changed to ‘Puneet Resins Limited’ on July 13, 1993.
The Company is in the business of manufacturing polymer blends consumed mainly by the medium and small scale sector which accounts for over 50% of the production of rubber goods in non-tire industrial products. These polymer blends are used in the manufacture of petrol hoses, LPG tubing, O-rings, seals & gaskets, printing & textile rollers, cable sheathing, automotive components, etc Besides Polymer blends, the Company also sells other complementary products sourced from abroad.
The Company is operating out of the premises leased by the promoter group company and has required infrastructure including information technology hardware and software to run its business. The day-to-day operations are being looked after by the core team comprising of the Managing Director and other members.
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Company Finances – Rishiroop
The salient features of the financial information of the Company for the last three financial years as at and for the financial year ended March 31, 2021, March 31, 2020, and March 31, 2019, on a consolidated as well as a standalone basis are given below:
[In Rs. Lakh]
| Particulars | 12 Months period ended March 31 | ||
| 2021 | 2020 | 2019 | |
| Total Income | 6,607.06 | 4,131.81 | 6,299.18 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 4,807.41 | 4,385.89 | 4,385.89 |
| Interest | – | – | – |
| Depreciation and amortization expenses | 47.78 | 53.76 | 45.08 |
| Profit before tax | 1,727.61 | (331.47) | 850.87 |
| Provision for tax (including Deferred Tax) |
847.94 | (47.35) | 120.74 |
| Profit /(Loss) after tax | 2,999.91 | (284.12) | 730.14 |
| Equity Share Capital | 970.13 | 970.13 | *970.13 |
| Reserve and Surplus | – | – | – |
| Net-worth | 8,274.98 | 5,749.91 | 6,290.92 |
| Total Debt (Excluding working capital loans) | – | – | – |
Rishiroop Ltd Buyback Dates
| Date of Board Meeting approving the Buyback | August 27, 2021 |
| Date of publication of Public Announcement for Buyback | August 30, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | September 9, 2021 |
| Buyback Opening date | October 5, 2021 |
| Buyback Closing date | October 20, 2021 |
| Last date of receipt of the completed tender form and other specified documents | October 22, 2021 |
| Last Date of verification of Tender Forms by the Registrar | October 28, 2021 |
| *Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | October 28, 2021 |
| Last date of Settlement of Bids on the BSE Limited | October 29, 2021 |
| *Last date of return of unaccepted Equity Shares by BSE Limited | October 29, 2021 |
| Last date of Extinguishment of Equity Shares | November 5, 2021 |
Details of Public Announcement
In accordance with the provisions of Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated Monday, August 30, 2021, for the Buyback of Equity Shares which was published within two Working Days of Board Meeting i.e. on Tuesday, August 31, 2021, in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Lokmantha | Marathi | Nasik Edition |
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Necessity of Rishiroop Buyback
The Board Meeting, considered all relevant factors, including the strategic and operational cash requirements in the medium term, present debt to equity ratio of the Company, the increase in accumulated free reserves, and considered it appropriate to allocate a sum not exceeding Rs 8,00,00,000 /- (excluding Transaction Costs) for distributing to Eligible Shareholders, through the Buyback.
In line with the above and to enhance the shareholder’s returns, the Board decided to approve Buyback at a price of Rs 125/- per Equity Share for an aggregate consideration of up to Rs 8,00,00,000/-
The Buyback is being proposed by the Company to service the equity more efficiently. Additionally, the Company’s management strives to increase equity shareholders value and the Buyback would result in amongst other things:
a) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;
b) The Buyback is generally expected to improve return on equity through the distribution of cash and improve earnings per share by a reduction in the equity base, thereby leading to a long term increase in shareholders’ value;
c) The Buyback gives an option to the shareholders holding Equity Shares of the Company, either to sell their Equity Shares and receive cash or not to sell their Equity Shares and get a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment and;
d) The Buyback, which is being implemented through the tender offer as prescribed under the Buyback Regulations, would involve a minimum reservation of 15% for Small Shareholders and allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the Small Shareholders.
Impact of Rishiroop Buyback on the Company
The Company shall not issue any new Equity Shares or other specified securities including by way of bonus till the date of closure of the Buyback.
The Company shall not raise further capital for a period of one year from the closure of the Buyback except in the discharge of its subsisting obligations such as the conversion of warrants, stock option schemes, sweat equity, or conversion of preference shares or debentures into Equity Shares.
Company, in compliance with regulation 4(v) of the Buyback Regulations, is not undertaking this Buyback so as to delist its Equity Shares or other specified securities from the stock exchanges
Salient financial parameters consequent to the Buyback based on the latest Audited Financial Statements as of March 31, 2021, are as under:
| Parameter (based on Audited Condensed Financial Statements as at and for the period ended Mar 31, 2021 | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Lakhs) | 8,274.98 | 7,474.98 |
| Return on Net worth (%) | 36.25% | 40.13% |
| Earnings Per Share (Rs) | 30.92 | 33.11 |
| Book Value per Share (Rs) | 85.30 | 82.49 |
| P/E as per the latest audited standalone financial statements (BSE) | 2.63 | 2.46 |
| Total Debt / Equity Ratio | – | – |
Basis of Calculating Rishiroop Buyback Price
The Equity Shares are proposed to be bought back at a price of Rs 125/- (Rupees One Hundred and Twenty-Five Only) per Equity Share. Buyback Price of Rs 125/- (Rupees One Hundred and Twenty-Five Only) per Equity Share has been arrived at after considering various factors including, but not limited to, the trends in the volume-weighted average price and closing price of the Equity Shares on the BSE. The Buyback Price represents:
The Buyback Offer Price represents:
a) Premium of 31.93% over the closing price of the Equity Shares on BSE, as on 23rd August 2021 is the date on which the Company intimated to the Stock Exchange of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
b) Premium of 12.06% over the volume-weighted average market price of the Equity Shares on BSE 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 the proposal of Buyback was considered.
c) Premium of 17.87 % over the volume-weighted average market price of the Equity Shares on BSE, during the 30 trading days preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
d) Premium of 22.23 % over the volume-weighted average market price of the Equity Shares on BSE, during the 60 trading days preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback would be Rs 8,00,00,000/- (Rupees Eight Crores Only), excluding Transaction Costs.
The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through the “Tender Offer” route and as required by the Buyback Regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.
The funds for the Buyback will be sourced from the cash and cash equivalents and/or accumulated internal accruals and no borrowings are made to discharge the Buyback obligations. However, if required, the Company may borrow funds in the ordinary course of its business.
This Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.
The Company shall transfer from its free reserves a sum equal to the nominal value of the equity shares purchased through the Buyback to the Capital Redemption Reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statement.
Rishiroop – Manager to the Buyback
| Buyback Manager Details |
| Inga Ventures Private Limited 1229, Hubtown Solaris, N.S. Phadke Marg, Opp. Telli Galli, Andheri (East), Mumbai 400069 Tel. No.: +91 022 26816003, Fax: +91 022 26816020; Contact Person: Kavita Shah; Email: kavita@ingaventures.com; Website: www.ingaventures.com; SEBI Registration No: INM000012698; Validity Period: Permanent CIN: U67100MH2018PTC318359 |
Rishiroop – Registrar to the Buyback
| Registrar Details |
| Link Intime India Private Limited C-101, 247 Park L.B.S. Marg, Vikhroli (W), Mumbai– 400 083 Tel. No.: +91 22 49186200; Fax: +91 22 4918696195; Contact person: Sumeet Deshpande; Email: rishiroop.buyback@linkintime.co.in Website: www.linkintime.co.in; SEBI Registration Number: INR000004058; Validity Period: Permanent CIN: U67190MH1999PTC118368. |
Rishiroop Contact Details
| Company Contact Details |
| Rishiroop Limited Registered Office: W-75(A), W-76(A), MIDC Industrial Area, Satpur, Nasik-422007; Corporate Office: 84 Atlanta, Nariman Point, Mumbai – 400 021 Corporate Identity Number (CIN): L25200MH1984PLC034093; Tel. No.: +91 22 4095 2080; Fax: +91 22 2287 2796; Email: afernandes@rishiroop.com; Website: www.rishiroop.in; Contact Person: Mr. Agnelo A. Fernandes, Company Secretary and Compliance Officer |
Rishiroop Buyback News
News 1 – Rishiroop Buyback PDF / Letter of Offer [Download]
News 2 – Rishiroop Ltd – Draft Letter of Offer [Download]
FAQs of Rishiroop Buyback
What is the Rishiroop Buyback Period?
Rishiroop 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. August 30, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. October 22, 2021.
What type of buyback is Rishiroop Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the Rishiroop Buyback Offer?
Rishiroop Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 6,40,000 Fully paid up Equity shares, adhering to the buyback price.
When Rishiroop Buyback offer will start?
As per the released schedule, the Rishiroop Buyback offer will start on October 5, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Rishiroop Buyback at all times, we ensure you have access to the right data.
When is the closing date of Rishiroop Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Rishiroop Buyback. The buyback would close on October 20, 2021. The closing date is the last day on which the Buyback shall be open for the shareholders.
What is the offer price for Rishiroop Buyback?
The amount at which the shares are taken back by the company is referred to as the Rishiroop Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.125, the price paid to each eligible shareholder.
What is the record date for the Rishiroop Buyback offer?
The record date of Rishiroop Buyback is September 9, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, the letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Rishiroop Buyback?
Rishiroop Buyback Size is Rs.8,00,00,000 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 Rishiroop Buyback?
The objective of the Rishiroop 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 of Rishiroop Buyback offer?
The designated registrar of Rishiroop Buyback is LINK INTIME INDIA 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 of the Rishiroop Buyback offer?
Manager of the Rishiroop Buyback is Inga Ventures Private Limited. The manager basically ensures that the company following up buyback strictly adheres to and is in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check the Rishiroop buyback acceptance ratio?
The 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 buy back 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 Rishiroop 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 Rishiroop Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Rishiroop Buyback Dates.
What can be the Impact of Rishiroop 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. 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 Rishiroop 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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