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Savita Oil Technologies Buyback Review, Offer Details, Price, Dates, Size & more

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

Savita Oil Technologies Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening Date
Buyback Closing Date
Buyback Offer AmountRs. 40,28,55,000/-
Buyback No. of Shares2,51,000
Face ValueRs. 10
Date of Buyback ApprovalMay 29, 2019
Date of Public AnnouncementMay 31, 2019
Buy Back PriceRs. 1605/-
Buy Back PremiumRs.1595/-
Date of Board MeetingMay 29, 2019

Savita Oil Technologies Buyback Opening and Closing Date

The starting and closing date of this buyback is NA.

Savita Oil Technologies Buyback Cash Offer

The Cash Offer to Buy-back up to 2,51,000 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 1.75% of the total number of equity shares.

Savita Oil Technologies Buyback Record Date

The decided record date is Wednesday, June 12, 2019.

Savita Oil Technologies Buyback Price

At a price of Rs.1605/- (Rupees One Thousand Six Hundred and Five Only) per Equity Share.

Savita Oil Technologies Buyback Size

At a buyback price of Rs.1605/- payable in cash for an aggregate consideration not exceeding Rs. 40,28,55,000/- (Rupees Forty Crores Twenty Eight Lakhs Fifty Five Thousand Only).

Savita Oil 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.


Savita Oil 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%2001605321000698005.56%
40%400160564200013960011.11%
60%600160596300020940016.67%
80%8001605128400027920022.23%
100%10001605160500034900027.79%

Profit is calculated from 11th June 2019 share price i.e. Rs.1256 per share of Savita Oil Technologies Limited.

According to the above table, if a share owner applies for 1000 shares of Savita Oil Technologies limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.1605 per share & receive Rs.69800 as profit amount & 5.56% 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.1605 & receive a profit of Rs.209400 @ 16.67% profit percentage.


Savita Oil Technologies Limited Buyback Overview

Savita Oil Technologies Limited BuybackThe Company has three manufacturing facilities – one is located in Turbhe, Navi Mumbai, Maharashtra and the other two in Silvassa – Union Territory of Dadra & Nagar Haveli at Kharadpada and Silli. The Company’s latest plant in Silli, Silvassa is a fully automated state of the art manufacturing unit that started operations in 2013.

Company is engaged in manufacturing and marketing of petroleum specialty products including transformer oils, white oils, lubricating oils, industrial oils, greases, etc.

The Company has also set up a number of windmills ranging in capacities from 350 KW to 1650 KW at different sites in the states of Maharashtra, Karnataka and Tamil Nadu for the generation of energy out of the wind.


Company Finances – Savita Oil Technologies Limited

The financial information for last three audited standalone financial years is stated below:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
201920182017
Revenue from operations2,26,251.871,82,462.751,68,326.98
Other Income1,839.86955.291,304.78
Total Income2,28,091.731,83,418.041,69,631.76
Total Expenses (excluding finance cost, depreciation & amortization)2,06,572.391,63,846.801,52,816.05
Finance Cost2,895.041,375.191,371.08
Depreciation and amortization expenses2,353.232,588.272,828.80
Profit before tax16,271.0715,607.7812,615.83
Provision for tax
(including Deferred Tax)
4,844.062,988.193,253.88
Profit /(Loss) after tax11,427.0112,619.599,361.95
Equity Share Capital1,432.211,432.211,460.21
Other Equity83,728.2772,798.7264,656.03
Networth85,160.4874,230.9366,116.24
Total Debt (Excluding working capital loans)383.00599.412,224.96

Savita Oil Technologies Limited Buyback Dates

Date of Board Meeting approving the BuybackMay 29, 2019
Date of publication of Public Announcement for BuybackMay 31, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersJune 12, 2019
Buyback Opening date
Buyback Closing date
Last Date of verification of Tender Forms by the Registrar
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar
Last date of Settlement of Bids on the BSE Limited
Last date of return of unaccepted Equity Shares by BSE Limited
Last date of Extinguishment of Equity Shares

Details of Public Announcement

In accordance with the provisions of Regulation 7 of the Buyback Regulations, the Company has made the Public Announcement dated May 30, 2019 (Thursday) for the Buyback of Equity Shares which was published within two Working Days i.e. on May 31, 2019 (Friday) from the date of passing of the resolution at the meeting of the Board of Directors held on May 29, 2019 (Wednesday) in the following newspapers:

PublicationLanguageEdition
Financial ExpressEnglishAll editions
JansattaHindiAll editions
Mumbai LakshadeepMarathiMumbai

Necessity of Savita Oil Technologies Limited Buyback

This 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:

  • The Buyback may help in improving earnings per share, return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • Buyback gives an option to the equity shareholders, who can either choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback; or choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buyback, without additional investment;
  • This Buyback, which is being implemented through the Tender Offer 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 for Small Shareholders would benefit a large number of public shareholders, who would get classified as Small Shareholder.

Impact of Savita Oil Technologies Limited Buyback on the Company

The Buy-Back is not likely to cause any material impact on the profitability or 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 Buyback is 100% (full acceptance) from all the Eligible Sellers in proportion to their respective Buyback Entitlement, the aggregate shareholding of the Promoter and Persons in Control post the Buyback may increase to [●] % from 71.63% prior to Buyback.

The Buyback is 100% (full acceptance) from all the Eligible Sellers in proportion to their respective Buyback Entitlement, the aggregate shareholding of the Equity Shareholders other than Promoter and Persons in Control, post the Buyback may decrease to [●] % from 28.37% prior to Buyback.

The Company confirms that as required under section 68(2)(d) of the Companies Act, 2013 the ratio of the aggregate of secured and unsecured debts owed by the Company will be not more than twice the paid-up share capital and free reserves as on March 31, 2019 after the Buyback.

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)85,160.4881,131.93
Return on Net worth (%)13.42%14.08%
Earnings Per Share (Rs)79.7981.21
Book Value per Share (Rs)594.61576.59
P/E as per the latest audited standalone financial statements14.9214.66
Total Debt / Equity Ratio0.010.01

Basis of Calculating Savita Oil Technologies Buyback Price

The Buyback Price of Rs. 1605/- per Equity Share has been arrived at after considering various factors including, but not limited to, the volume weighted average market price of the Equity Shares on the NSE during 3 months preceding the date of the intimation of the Board Meeting the closing market price on the date of the intimation of the Board Meeting and the impact on the net worth of the Company and possible impact of Buyback on earnings and return on net worth per Equity Share.

More on Savita Oil Technologies Buyback Price Calculation

The Buy-Back Price represents a premium of 41.24% over the volume weighted average market price of the Equity Shares on the NSE (the Stock Exchange where the maximum volume of trading in the Equity Shares is recorded) for 3 (three) months preceding the date of the intimation of the Board Meeting i.e. May 22, 2019 which was Rs.1136.38.

The closing market price of the Equity Shares as on the date of the intimation of the Board Meeting i.e. May 22, 2019 was Rs. 1073.30 on NSE and the closing price of the Equity Shares on May 21, 2019 was Rs. 1085.55 on BSE (Since Equity Shares of the Company were not traded on BSE on May 22, 2019 i.e. the date of the intimation of the Board Meeting, therefore the closing price on May 21, 2019, a day preceding the date of intimation of Board Meeting has been disclosed).


Source of Funds for the Buyback

The funds for the Buyback will be sourced from adequate internal accruals/reserves and surplus and firm financial resources of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Thus, borrowed funds will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.

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 details of such transfer shall be disclosed in its subsequent audited standalone financial statements.


Savita Oil Technologies Limited – Manager to the Buyback

ITI Capital Limited
(Formerly known as Inga Capital Limited)
Naman Midtown, 21st Floor, ‘A’ Wing,
Senapati Bapat Marg, Elphinstone (West),
Mumbai – 400 013, Maharashtra.
Tel. No.: +91 22 4031 3489, Fax No.: +91 22 4031 3379;
Contact Person: Mr. Mihir Pandhi / Ms. Nimisha Joshi;
Email: [email protected];
Website: www.iticapital.in;
SEBI Registration No: INM000010924
CIN:U74140MH1999PLC122493
Valid upto : Permanent Registration

Savita Oil Technologies Limited – Registrar to the Buyback

Link Intime India Private Limited
C 101, 247 Park, L.B.S. Marg,
Vikhroli (West), Mumbai 400 083, Maharashtra, India.
Tel. No.: +91 22 4918 6200; Fax: +91 22 4918 6195
Contact person: Mr. Sumeet Deshpande;
Email:[email protected];
Website: www.linkintime.co.in;
SEBI Registration No:INR000004058;
CIN:U67190MH1999PTC118368
Valid upto: Permanent Registration

Savita Oil Technologies Contact Details

Company Contact Details
SAVITA OIL TECHNOLOGIES LIMITED
Registered Office: 66/67, Nariman Bhavan, Nariman Point, Mumbai – 400 021
Corporate Identity Number (CIN): L24100MH1961PLC012066
Tel. No.: +91 22 6624 6200; Fax: +91 22 2202 9364; Email: [email protected];
Website: www.savita.com; Contact Person: Mr. Uday Rege, Company Secretary & Compliance Officer

 


Savita Oil Technologies Limited Buyback News

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

News 2 – Savita Oil Technologies Ltd – Public Announcement


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