In this article, we will discuss the S H Kelkar and Company Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity and its impact on the company.
S H Kelkar and Company Limited Buyback Details
|Buyback Type||Tender Offer|
|Buyback Opening Date||–|
|Buy-back Closing Date||–|
|Buyback Offer Amount||Rs. 59,40,00,000/-|
|Buy-back No. of Shares||33,00,000|
|Face Value||Rs. 10/-|
|Date of Buyback Approval||June 10, 2019|
|Date of Public Announcement||June 12, 2019|
|Buy Back Price||Rs. 180/-|
|Buy Back Premium||19.05%|
S H Kelkar Buyback Opening and Closing Date
The starting and closing dates of this buyback are NA.
S H Kelkar Buyback Cash Offer
The Cash Offer to Buy-back up to 33,00,000 (Thirty-Three Lakh) fully paid-up equity shares of the Company of face value of Rs. 10 each.
S H Kelkar Buyback Record Date
The decided record date is Thursday, June 20, 2019.
S H Kelkar and Company Buyback Price
At a price of Rs. 180/- (Rupees One Hundred Eighty Only) per Equity Share.
S H Kelkar and Company Buyback Size
The Buyback is for an aggregate amount not exceeding Rs. 59,40,00,000/- (Rupees Fifty-Nine Crores Forty Lakhs only)
S H Kelkar and Company 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%|
Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of S H Kelkar and Company Limited.
According to the above table, if a share owner applies for 1000 shares of S H Kelkar and Company 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.
S H Kelkar Buyback Overview
S H Kelkar Company is engaged in developing, manufacturing, sale, and distribution of fragrance and flavours and offers fragrances in various categories, such as personal care, hair care, air care, skincare and cosmetics, fabric care, household products, and fine fragrances. Company also offers flavours in various other categories such as dairy products, beverages, confectionery, savoury, bakery products, and pharmaceuticals.
This Company exports to more than 50 countries. Headquartered in Mumbai, India, the Company has five creation and development centers and seven manufacturing operations across India, Indonesia, China, Singapore, the Netherlands, and Italy.
The Company’s fragrance manufacturing plants in Mumbai and Raigad in Maharashtra comply with the regulations of the International Fragrance Association and the Company’s flavour manufacturing plant in Raigad in Maharashtra is registered with the United States Food and Drug Administration. The company has over 4,100 customers.
Company Finances – S H Kelkar and Company Limited
The salient financial information of the Company as extracted from the audited financial statements for the last three years being March 31, 2019, March 31, 2018, and March 31, 2017, are as under:
(Rs in Crores)
|Particulars||For the year|
ended March 31, 2019
|For the year|
|For the year|
ended March 31, 2017
|Depreciation and Amortization Expense||15.18||10.53||6.81|
|Profit/(Loss) before Tax||62.21||103.16||103.18|
|Provision for Tax|
(including Deferred Tax)
|Profit/(Loss) after Tax||44.97||68.96||74.31|
|Equity share capital||144.62||144.61||144.62|
|Less: Other Comprehensive Income||–||–||–|
|Debt (excluding working capital)||–||–||–|
|Debt (including working capital)||–||–||–|
S H Kelkar and Company Limited Buyback Dates
|Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares||Monday, June 10, 2019|
|Date of publication of Public Announcement for the Buy-back||Wednesday, June 12, 2019|
|Record Date for determining the Buy-back Entitlement and the Eligible Shareholders||Thursday, June 20, 2019|
|Buy-back opens on / Buy-back Opening Date||–|
|Buyback 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 S H Kelkar and Company Limited Buyback
The Company believes that Buyback is an efficient way of rewarding the long term shareholders especially the small shareholders. The optimization of capital structure due to resultant reduction in the paid up equity share capital will result in creating long term value for the shareholders and enhancing the overall returns.
This buyback would give an option to the shareholders to either participate in the buyback and receive cash in lieu of Equity Shares accepted under the buyback or not participate in the buyback based on their liquidity and long term plans.
Buyback involves allocating to the small shareholders the higher of number of shares entitled as per their holding or 15% of the number of shares to be bought back, reserved for the small shareholders.
Impact of S H Kelkar and Company Limited Buyback on the Company
It is believed that the Buyback 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.
Pursuant to the proposed Buyback and depending on the response to the Buyback, the aggregate shareholding of the Promoters and Promoter Group in the Company post Buyback may increase from the existing holding of 56.91% to [●]% and the aggregate shareholding of the public may decrease from 43.09% to [●]% of the post Buyback equity share capital of the Company.
The ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice its paid-up Equity Share capital and free reserves post completion of the Buyback, even if the response to the Buyback is to the extent of 100%.
Salient financial parameters pursuant to the Buyback based on the audited financial statements as of March 31, 2019, of the Company are as under:
|Parameters||Based on Consolidated Financial|
|Based on Standalone Financial|
|Pre Buyback||Post Buyback||Pre Buyback||Post Buyback|
|Net Worth (Rs in Crores)||596.55||537.15||863.35||803.95|
|Profit/(Loss) for the period (Rs in|
|Return on Net Worth %||7.54||8.37||10.25||11.01|
|Earnings Per Equity Share (EPS)|
(Basic) (in Rs)
|Book Value per share (in Rs)||41.81||38.53||60.50||57.67|
|Price Earnings (PE) Multiple||48.70||47.57||24.75||24.18|
|Debt/ Equity ratio||0.15||0.16||0.40||0.42|
Basis of Calculating S H Kelkar and Company Buyback Price
The Buyback Price has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average market price of the Equity Shares on BSE and NSE where the Equity Shares is listed, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the Earnings Per Share.
More on S H Kelkar and Company Buyback Price Calculation
The equity shares are being offered for buyback at a premium of 19.05% and 18.58% over the closing price of equity shares on BSE and NSE respectively being Rs 151.20 and Rs 151.80, on the date of intimation of Board meeting to consider the proposal for buyback.
Book value per Equity Share of the Company pre-Buyback as on March 31, 2019 on Standalone and consolidated basis, was Rs 41.81 & Rs 60.50 respectively, which will decrease to Rs 38.53 & Rs 57.67 respectively, post Buyback Offer assuming full acceptance of the Buyback.
The earning per Equity Share of the Company pre-Buyback as on March 31, 2019, on Standalone and consolidated basis, was Rs 3.15 & Rs 6.20 respectively, which will increase to Rs 3.23 & Rs 6.35 respectively, post Buyback Offer assuming full acceptance of the Buyback.
Return on net worth of the Company pre Buyback as on March 31, 2019, on Standalone and consolidated basis, was 7.54% & 10.25% respectively which will increase to 8.37% & 11.01% respectively, post Buyback Offer assuming full acceptance of the Buyback.
Source of Funds for the Buyback
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 Buy-Back obligations.
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.
S H Kelkar and Company Limited – Manager to the Buyback
|KEYNOTE FINANCIAL SERVICES LIMITED|
(Formerly known as Keynote Corporate Services Limited)
The Ruby, 9th Floor, Senapati Bapat Marg,
Dadar (West), Mumbai – 400028
Tel: +91–22– 68266000-3; Fax: +91–22– 6826 6088
Contact Person: Ms. Pooja Sanghvi
SEBI Registration No.: INM 000003606
Validity Period: Permanent Registration
S H Kelkar and Company Limited – Registrar to the Buyback
|LINK INTIME INDIA PRIVATE LIMITED|
C101, 247 Park, LBS Marg,
Vikhroli (West), Mumbai 400 083
Tel: +91 22 4918 6000; Fax: +91-44 – 2846 0129
Contact Person: Mr. Sumeet Deshpande
SEBI Registration No.: INR000004058
Validity Period: Permanent Registration
S H Kelkar and Company Limited Contact Details
|Company Contact Details|
|S H Kelkar and Company LIMITED|
Registered Address: 36, Devkaran Mansion, Mangaldas Road, Mumbai, Maharashtra, 400002
Tele. No. 022-21649143/ 22069609, Fax : 022-22081204,21649766
Corporate Identification Number (CIN): L74999MH1955PLC009593
Contact Person: Ms. Deepti Chandratre, Company Secretary & DGM Legal
S H Kelkar and Company Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
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