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

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

Sasken Technologies Limited Buyback Details

Buyback TypeTender Offer
Opening Date
Buyback Closing Date
Buyback Offer AmountRs. 16,988.76 lakhs
Buyback No. of Shares 20,59,243
Face ValueRs. 10/-
Date of Buyback ApprovalApril 23, 2019
Date of Public AnnouncementJune 24, 2019
Buy Back PriceRs. 825/-
Buy Back Premium16.57%

Sasken Technologies Buyback Opening and Closing Date

The starting and closing dates of this buyback are N.A.

Sasken Technologies Buyback Cash Offer

The Cash Offer to Buy-back up to 20,59,243 (Twenty Lakhs Fifty Nine Thousand Two Hundred Forty-Three) fully paid-up equity shares of the Company of face value of Rs. 10 each.

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 Eight Hundred Twenty Five Only) per Equity Share.

Sasken Technologies Buyback Size

The Buyback is for an aggregate amount not exceeding Rs. 16,988.76 lakhs (Rupees Sixteen Thousand Nine Hundred Eighty-Eight Lakhs and Seventy-Six Thousand Only).


Sasken Technologies 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%200825165000168002.27%
40%400825330000336004.53%
60%600825495000504006.80%
80%800825660000672009.07%
100%10008258250008400011.34%

Profit is calculated from 3rd July 2019 share price i.e. Rs.741 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, the owner of this 1000 shares will sell 200 shares @ Rs.825 per share & receive Rs.16800 as profit amount & 2.27% 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.50400 @ 6.80% profit percentage.


Sasken Technologies Limited Buyback Overview

Sasken Technologies Limited BuybackSasken 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 the UK.


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:

(Rs in Lakhs)

CONSOLIDATED
ParticularsFor the year
ended March 31,
2019
For the year
ended March
31, 2018
For the year
ended March 31,
2017
AuditedAuditedAudited
Total Income55,033.4653,945.0649,442.07
Total Expenses43,318.0443,357.1142,579.18
Finance Cost009.23
Depreciation and Amortization
expense
660.52622.25649.49
Profit/(Loss) before Tax11,054.909,965.708,229.17
Profit/(Loss) after Tax9,042.298,242.317,368.60
Equity share capital1,711.011,711.011,711.01
Less: Other Comprehensive Income835.26(466.22)
Net worth67,955.0860,636.8151,418.07
Debt (excluding working capital)000

 

STANDALONE
ParticularsMarch 31,
2019
 March
31, 2018
March 31,
2017
Audited
Total Income46,732.8747,002.3942,001.65
Total Expenses34,624.6436,890.2936,178.40
Finance Cost009.23
Depreciation and Amortization
expense
579.22562.72590.74
Profit/(Loss) before Tax11,529.019,549.387,257.51
Profit/(Loss) after Tax9,404.948,300.216,600.44
Equity share capital1,711.011,711.011,711.01
Less: Other Comprehensive Income747.35(797.50)
Net worth68,062.5260,381.5951,613.94
Debt (excluding working capital)000

Sasken Technologies Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesFriday, March 15, 2019
Date of publication of Public Announcement for the Buy-backMonday, June 24, 2019
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersFriday, July 5, 2019
Buy-back opens on / Buy-back Opening Date
Buy-back 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 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;
  • 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

We believe 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.

Assuming the response to the Buy-back is 100% (full acceptance) from all the Eligible Shareholders in proportion to their respective Buy-back Entitlement, the percentage shareholding and voting rights held by Promoters, Promoter Group, PACs and public shareholders may change however, total shareholding and voting rights held by Promoters, Promoter Group and PACs post Buy-back of Equity Shares will not exceed the maximum permissible non-public shareholding.

The debt-equity ratio immediately on completion of Buyback shall be in compliant with the permissible limit of 2:1 prescribed under the Act even if the response to the Buyback is 100% (full acceptance) from all the Eligible Sellers in proportion to their respective Buyback Entitlement.

Salient financial parameters consequent to the Buy-back based on the audited consolidated and standalone financial statements for the financial year ended on March 31, 2019 are as under:

ParametersBased on Consolidated Financial StatementsBased on Standalone Financial Statements
Pre BuybackPost BuybackPre BuybackPost Buyback
Net Worth (Rs in Lakhs)67,955.0850,966.3268,062.5251,073.76
Return on Net Worth %13.3117.7413.8218.41
Earnings Per Equity Share (EPS)
(Basic) (in Rs)
52.9260.1754.9762.49
Book Value per share (in Rs)397.16338.63397.79339.34
Price Earnings (PE) Multiple11.9810.5311.5310.14
Debt/ Equity ratio0000

Basis of Calculating Sasken Technologies Buyback Price

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 months preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy-back and 27.30% and 27.32% over the volume-weighted average market price of the Equity Shares on BSE and NSE respectively for 2 weeks preceding the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy-back.

The Buy-back Price represents a premium of 14.60% and 13.91% over the closing prices on BSE and on NSE respectively as on June 20, 2019, the date of Buy-back Committee meeting to determine final terms of the Buy-back and premium of 16.57% and 16.87% over the closing prices on BSE and on NSE respectively as on April 23, 2019, the date of Board of Directors meeting to approve the Buy-back.


Source of Funds for the Buyback

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: [email protected] ; 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: [email protected];
Investor Grievance Email: [email protected]
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: [email protected]; 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]


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