Sasken Technologies Limited Buyback Review, Offer Details, Price, Dates, Size & more

In this article, we will discuss about Sasken Technologies Limited Buyback offer, buyback price, buyback size, Sasken Technologies Buyback record date, company financial, buyback necessity and its impact on company.

Sasken Technologies Limited Buyback Details

Buyback TypeTender Offer
Opening DateFriday, October 11, 2019
Closing DateThursday, October 24, 2019
Buyback Offer AmountRs. 20,59,243/-
Buyback No. of Shares16,988.76
Face ValueRs. 10
Date of Buyback ApprovalApril 23, 2019
Date of Public AnnouncementJune 24, 2019
Buy Back PriceRs. 825/-
Buy Back Premium12.04%%
Date of Board Meeting23 April 2019

Sasken Technologies Buyback Opening and Closing Date

The starting date is Friday, October 11, 2019 and closing date of this buyback is Thursday, October 24, 2019.

Sasken Technologies Buyback Cash Offer

The Cash Offer to Buy-back up to20,59,243 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 12.14% of the total number of equity shares.

Sasken Technologies Buyback Record Date

The decided record date is Friday, July 5, 2019.

Sasken Technologies Buyback Price

At a price of Rs.825(Rupees Three Hundred and Twenty Five only) per Equity Share.

Sasken Technologies Buyback Size

At a buyback price of Rs.825/- payable in cash for an aggregate consideration not exceeding Rs.16,988.76.

Sasken Technologies 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.


Sasken Technologies 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%200825165000428007.00%
40%4008253300008560014.01%
60%60082549500012840021.01%
80%80082566000017120028.02%
100%100082582500021400035.02%

Profit is calculated from 04 Oct, 2019 share price i.e. Rs.611 per share of Sasken Technologies Limited.

According to the above table, if a shareowner applies for 1000 shares of Sasken Technologies limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.825 per share & receive Rs.42800 as profit amount & 7.00 % 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.825 & receive a profit of Rs.128400 @ 21.01 % profit percentage.


Sasken Technologies Limited Buyback Overview

The Company was originally incorporated as “ASIC Technologies Private Limited” on February 13, 1989 under the Companies Act, 1956. Sasken is a specialist in Product Engineering and Digital Transformation providing concept-to-market, chip-to-cognition R&D services to global leaders in Semiconductor, Automotive, Industrials, Smart Devices & Wearables, Enterprise Grade Devices, SatCom, and Transportation industries.

For over 30 years and with multiple patents, Sasken has transformed the businesses of 100+ Fortune 500 companies, powering more than a billion devices through its services and Intellectual Property.It employs around 2000 people, operating from state-of-the-art centers in Bengaluru, Pune, Chennai and Hyderabad (India), Kaustinen and Tampere (Finland), Detroit (USA), and Beijing, Shanghai (China). Sasken also has its presence across Germany, Japan and UK.

The Equity Shares of the Company are listed and traded on BSE and NSE under scrip code – 532663 and scrip name: SASKEN respectively.


Company Finances – Sasken Technologies Limited

The salient features of the financial information of the Company as extracted from the audited standalone and consolidated financial statements for financial years ended March 31, 2019 and March 31, 2018, prepared under Ind AS and from the audited standalone and consolidated financial statements for financial year ended on March 31, 2017, prepared under erstwhile Indian Generally Accepted Accounting Principles (“IGAAP”) are set out below.

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
201920182017
Total Income55,033.4653,945.0649,442.07
Total Expenses (excluding finance cost, depreciation & amortization)43,318.0443,357.1142,579.18
Interest0.000.009.23
Depreciation and amortization expenses660.52622.25649.49
Profit before tax11,054.909,965.708,229.17
Provision for tax
(including Deferred Tax)
2,012.611,723.39860.57
Profit /(Loss) after tax9,042.298,242.317,368.60
Equity Share Capital1,20,67990,48048,618
Other Equity1,711.011,711.011,711.01
Networth67,955.0858,925.8049,707.06
Total Debt (Excluding working capital loans)0.000.000.00

Sasken Technologies Limited Buyback Dates

Date of Board Meeting approving the BuybackTuesday, April 23, 2019
Date of publication of Public Announcement for BuybackMonday, June 24, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersFriday, July 5, 2019
Buyback Opening dateFriday, October 11, 2019
Buyback Closing dateThursday, October 24, 2019
Last Date of verification of Tender Forms by the RegistrarMonday, November 4, 2019
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarMonday, November 4, 2019
Last date of Settlement of Bids on the BSE LimitedTuesday, November 5, 2019
Last date of return of unaccepted Equity Shares by BSE LimitedTuesday, November 5, 2019
Last date of Extinguishment of Equity SharesTuesday, November 12, 2019

Details of Public Announcement

In accordance with the provisions of Regulation 7(i) of the Buy-back Regulations, the Company has made a Public Announcement dated June 21, 2019, in relation to the Buy-back which was published on Monday, June 24, 2019, in the following newspapers, which is within two Working Days from the date of declaration of results of postal ballot, i.e. Thursday, June 20, 2019:

PublicationLanguageEdition
Financial ExpressEnglishAll
JansattaHindiAll
Kannada PrabhaKannadaBengaluru

Necessity of Sasken Technologies Limited Buyback

The Buy-back is a more efficient form of distributing surplus cash to the equity shareholders compared to other alternatives including interim dividend, inter-alia, for the following reasons.

  • The Buy-back gives an option to the equity shareholders to either participate in the Buy-back and receive cash in lieu of Equity Shares accepted under the Buy-back or not participate in the Buy-back and enjoy a resultant increase in their percentage of shareholding in the Company post the Buy-back;
  •  The Buy-back would help in improving certain key financial ratios of the Company;
  •  The Buy-back which is being implemented through the Tender Offer route as prescribed under the Buy-back Regulations, would involve a reservation for small shareholders as defined in the Buy-back Regulations.
  •  As defined in the Buy-back Regulations, a small shareholder is a shareholder who holds Equity Shares having market value, on the basis of closing price on the recognized stock exchange in which highest trading volume in respect of such Equity Shares, as on the Record Date, of not more than Rs. 2,00,000 (Rupees Two lakhs).

Impact of Sasken Technologies Limited Buyback on the Company

The Company believes that the Buy-back 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.

Assuming that the response to the Buy-back is 100% (full acceptance) from all the Eligible Shareholders in proportion of their respective Buy-back Entitlement, the funds deployed by the Company towards the Buy-back would be Rs16,988.76 lakhs excluding Transaction Costs.

Post Buy-back, the level of holding of public shareholders in the Company shall not fall below the minimum level of public shareholding required to be maintained in terms of SCRR and under the Listing Regulations

Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2018)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)68,062.5251,073.76
Return on Net worth (%)13.82%18.41%
Earnings Per Share (Rs)54.9762.49
Book Value per Share (Rs)397.79339.34
P/E as per the latest audited standalone financial statements11.5310.14
Total Debt / Equity Ratio00

Basis of Calculating Sasken Technologies Buyback Price

The Equity Shares are proposed to be bought back at a price of Rs 825 per Equity Share. The Buy-back Price has been arrived at after considering various factors.

The Buy-back Price has been arrived at after considering various factors, including but not limited to, the volume weighted average market price of the Equity Shares of the Company on BSE and NSE during 3 (three) months and 2 (two) weeks preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy-back and closing market price of the Equity Shares on the Stock Exchanges as on the date of the intimation to Stock Exchanges for the Board Meeting to consider the proposal of the Buy-back.

More on Sasken Technologies Buyback Price Calculation

The Buy-back Price represents a premium of 30.27% and 29.09% over the volume weighted average market price of the Equity Shares on BSE and NSE respectively for 3 (three) months preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy-back which was Rs 633633.30 and Rs639.11 respectively and 27.30% and 27.32% over the volume weighted average market price of the Equity Shares on BSE and NSE respectively for 2 (two) weeks preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy-back which was Rs648.08 and Rs647.98 respectively.

The Buy-back Price is about 207.40% and 207.72% of the book value per Equity Share of the Company, which is Rs 397.79 and Rs 397.16 as at March 31, 2019 on standalone basis and consolidated basis, respectively.


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buy-back would be Rs 16,988.76 lakhs, excluding Transaction Costs.

The Buy-back will be financed out of free reserves, current surplus and / or cash and cash equivalents and / or internal accruals of the Company and / or other permissible sources of funds but not from any borrowed funds.


Sasken Technologies Limited – Manager to the Buyback

Vivro Financial Services Private Limited
607, 608 Marathon Icon, Opp. Peninsula Corporate Park,
Off Ganpatrao Kadam Marg,
Veer Santaji Lane,
Lower Parel, Mumbai – 400 013.
Tel.:+91 22 6666 8040 / 41 / 42 Fax: +91 22 6666 8047
E-mail: investors@vivro.net ; Website: www.vivro.net
Contact Person(s): Mr. Harish Patel / Ms. Mili Khamar
SEBI Registration Number: INM000010122; Validity: Permanent
CIN: U67120GJ1996PTC029182

Sasken Technologies Limited – Registrar to the Buyback

Karvy Fintech Private Limited
Karvy Selenium, Tower B, Plot Nos. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad – 500032.
Tel: +91 40 6716 2222; Fax: +91 40 2343 1551
Email: sasken.buyback2019@karvy.com;
Investor Grievance Email: einward.ris@karvy.com
Website: www.karvyfintech.com
Contact Person: Mr. M. Murali Krishna
SEBI Registration Number: INR000000221; Validity: Permanent
CIN: U72400TG2017PTC117649

Sasken Technologies Limited Contact Details

Company Contact Details
SASKEN TECHNOLOGIES LIMITED
Corporate Identity Number (CIN): L72100KA1989PLC014226
Registered Office: 139/25, Ring Road, Domlur, Bengaluru – 560 071.
Phone: + 91 80 6694 3000; Fax: + 91 80 2535 1133; E-mail: investor@sasken.com; Website: www.sasken.com;
Contact Person: Mr. S. Prasad, Associate Vice President & Company Secretary

 


Sasken Technologies Limited Buyback News

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

News 2 – Sasken Technologies Ltd – Public Announcement


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