RITES Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Aug 22, 2022In this article, they will discuss about RITES Limited Buyback offer, buyback price, buyback size, RITES Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – RITES Share Price
RITES Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | October 27, 2020 |
| Closing Date | November 10, 2020 |
| Buyback Offer Amount | Rs.257 CRORES |
| Buyback No. of Shares | 96,98,113 |
| Face Value | Rs.10 |
| Date of Buyback Approval | September 18, 2020 |
| Date of Public Announcement | September 21, 2020 |
| Buy Back Price | Rs.265 |
| Buy Back Premium | 5.91% |
| Date of Board Meeting | September 18, 2020 |
RITES Buyback Opening and Closing Date
The starting and closing date of this buyback is from OCTOBER 27, 2020 to NOVEMBER 10, 2020.
RITES Buyback Cash Offer
Cash Offer to Buy-back up to 96,98,113 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 3.88% of the issued, subscribed and paid-up Equity Shares of the Company.
RITES Buyback Record Date
The decided record date is SEPTEMBER 30, 2020.
RITES Buyback Price
At a price of Rs.265 per Equity Share.
RITES Buyback Size
At a buyback price of Rs.265 payable in cash for an aggregate maximum amount of Rs.257 CRORES.
RITES 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.
RITES 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 | 265 | 53000 | 4650 | 1.92% |
| 40% | 400 | 265 | 106000 | 9300 | 3.85% |
| 60% | 600 | 265 | 159000 | 13950 | 5.77% |
| 80% | 800 | 265 | 212000 | 18600 | 7.69% |
| 100% | 1000 | 265 | 265000 | 23250 | 9.62% |
Profit is calculated from Oct 21, 2020 share price i.e. Rs.241.75 per share of RITES Limited.
According to the above table, if a shareowner applies for 1000 shares of RITES limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.265 per share & receive Rs.4650 as profit amount & 1.92% 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.265 & receive a profit of Rs.13950 @ 5.77% profit percentage.
RITES Limited Buyback Overview
RITES Limited is a multidisciplinary engineering and consultancy organization providing diversified and comprehensive array of services from concept to commissioning in all facets of transport infrastructure and related technologies.
This company has an experience spanning over 46 years and has undertaken projects in over 55 countries including Asia, Africa, Latin America, South America and Middle East regions. Company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).
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Company Finances – RITES Ltd
The brief audited consolidated financial information of the Company for the last three financial years are provided below:
[In Rs. Crores]
| Particulars | June 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 365.79 | 2665.05 | 2164.16 | 1586.35 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 271.44 | 1798.47 | 1451.68 | 1068.71 |
| Interest | 0.72 | 3.04 | 3.58 | 2.71 |
| Depreciation | 10.96 | 40.93 | 32.18 | 30.18 |
| Profit before tax | 82.67 | 822.61 | 676.72 | 484.75 |
| Provision for tax (including Deferred Tax) |
22.54 | 226.22 | 232.07 | 153.04 |
| Profit /(Loss) after tax | 60.13 | 596.39 | 444.65 | 331.71 |
| Equity Share Capital | 250 | 250 | 200 | 200 |
| Reserve and Surplus | 2384.98 | 2326.62 | 2183.83 | 1999.11 |
| Networth | 2634.98 | 2576.62 | 2383.33 | 2199.11 |
| Total Debt | NA | nil | nil | *nil |
RITES Limited Buyback Dates
| Date of Board Meeting approving the Buyback | September 18, 2020 |
| Date of publication of Public Announcement for Buyback | September 22, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | September 30, 2020 |
| Buyback Opening date | October 27, 2020 |
| Buyback Closing date | November 10, 2020 |
| Last Date of verification of Tender Forms by the Registrar | November 13, 2020 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | November 17, 2020 |
| *Last date of Settlement of Bids on the BSE Limited | November 18, 2020 |
| Last date of return of unaccepted Equity Shares by BSE Limited | November 18, 2020 |
| *Last date of Extinguishment of Equity Shares | November 24, 2020 |
Details of Public Announcement
The Public Announcement was published on September 22, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All Editions |
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Necessity of RITES Limited Buyback
Buyback is the acquisition by a company of its own shares. Buyback is an efficient form of returning surplus cash to the members holding equity shares of the Company, inter-alia, for the following reasons:
i. The Buyback will help the Company to return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members;
ii. The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation of 15% for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder”;
iii. The Buyback would help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders‟ value; and
iv. The Buyback gives an option to the members holding equity shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Impact of RITES Limited Buyback on the Company
The Company believes the Buyback is not likely to cause any material impact on the profitability/ 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.
Assuming there is full response to the Buyback to the extent of 100%, the funds deployed by the Company towards the Buyback would be Rs 257 Crore (Rupees Two Hundred Fifty Seven Crore Only). This shall impact the investment income earned by the Company, on account of reduced amount of funds available for investments.
The Company believes 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, thereby, enhancing the overall return to the shareholders.
The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2020 are as under:
| Parameters (based on audited standalone financial statements for year ended March 31, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 2576.62 | 2319.62 |
| Return on Net worth (%) | 23.15 | 25.71 |
| Earnings Per Share (Rs) | 23.86 | 24.82 |
| Book Value per Share (Rs) | 103.06 | 96.53 |
| Price / Earnings Ratio (P/E)** | 10.31 | 9.92 |
| Total Debt / Equity Ratio | NA | NA |
Basis of Calculating RITES Buyback Price
The Buyback Offer Price of Rs 265 (Rupees Two Hundred Sixty Five Only) per Equity Share has been arrived at after considering various factors such as the average closing prices of the Equity Shares on the Stock Exchanges where the Equity Shares of the Company are listed, the net-worth of the Company and the impact of the Buyback on the key financial ratios of the Company.
The Buyback Price represents
(i) a premium of 5.91% on BSE and 5.77% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE respectively for 2 months preceding September 14, 2020, being the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback (“Intimation Date”);
(ii) premium of 8.18% on BSE and 7.98% on NSE over the volume weighted average price of the equity Shares on BSE and NSE respectively for 2 weeks preceding the Intimation Date;
(iii) premium of 5.37% on BSE and 5.41% on NSE over the closing market price of the Equity Shares on BSE and NSE on the Intimation Date.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback of 96,98,113 Equity Shares at a price of Rs. 265/- per Equity Share would be Rs. 257 Crore excluding filing fees payable to the Securities and Exchange Board of India, excluding transaction costs viz. brokerage, advisor‟s fees, intermediaries fees, public announcement publication fees, turnover charges, applicable taxes inter alia including buyback taxes, securities transaction tax, goods and services tax, stamp duty and other incidental and related expenses.
The Buyback shall be made out of the free reserves of the Company as at March 31, 2020. The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and the details of such transfer shall be disclosed in its subsequent audited balance sheet.
The funds for the Buyback will be met out of internally generated cash resources of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Accordingly, borrowed funds will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.
RITES Limited – Manager to the Buyback
| IDBI CAPITAL MARKETS & SECURITIES LIMITED 6th Floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India Contact person: Chandresh Sharma Tel: +91 (22) 2217 1700 Fax: 91 (22) 2215 1787 Email: ritesbuyback@idbicapital.com Website: www.idbicapital.com SEBI Registration No.: INM000010866 Validity Period: Permanent CIN: U65990MH1993GOI075578 |
RITES Ltd – Registrar to the Buyback
|
LINK INTIME INDIA PRIVATE LIMITED
Contact Person: Mr. Sumeet Deshpande Regd. Off.: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400 083 Tel No.: +91 22 4918 6200 Fax No.: +91 22 4918 6195 Email id.: dhanuka.buyback2020@linkintime.co.in Website: www.linkintime.co.in SEBI Regn. No.: INR000004058 Validity Period: Permanent |
RITES Ltd Contact Details
| Company Contact Details |
| RITES LIMITED (Schedule „A‟ Enterprise of Govt. of India) CIN: L74899DL1974GOI007227 Registered Office: SCOPE Minar, Laxmi Nagar, Delhi-110092, India Tel.: +91 11 2202 4610, Fax: +91 11 2202 4660 Corporate Office: RITES Bhavan, No. 1, Sector 29, Gurugram – 122 001, Haryana, India Tel.: +91 12 4257 1665, Fax: +91 12 4257 1187 E-mail: cs@rites.com | Website: www.rites.com |
RITES Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – RITES Ltd – Public Announcement
FAQs of Rites Limited Buyback
What is the Rites Limited Buyback Period?
Rites Limited 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. October 27, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. November 10, 2020.
What type of buyback is Rites Limited Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. 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 Rites Limited Buyback Offer?
Rites Limited Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 96,98,113 Fully paid up Equity shares, adhering to the buyback price.
When Rites Limited Buyback offer will start?
As per the released schedule, the Rites Limited Buyback offer will start on October 27, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Rites Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of Rites Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Rites Limited Buyback. The buyback would close on November 10, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Rites Limited Buyback?
The amount at which the shares are taken back by the company is referred to as Rites Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.265, the price paid to each eligible shareholder.
What is the record date for Rites Limited Buyback offer?
Record date of Rites Limited Buyback is SEPTEMBER 30, 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 Rites Limited Buyback?
Rites Limited Buyback Size is Rs.257 CRORES 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 Rites Limited Buyback?
Objective of the Rites Limited 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 Rites Limited Buyback offer?
The designated registrar of Rites Limited 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 to the Rites Limited Buyback offer?
Manager to the Rites Limited Buyback is IDBI CAPITAL MARKETS & SECURITIES 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 Rites Limited 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 Rites Limited 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 Rites Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Rites Limited Buyback Dates.
What can be the Impact of Rites Limited 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 Rites Limited 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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