Shriram Pistons and Rings Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 19, 2022In this article, we will discuss Shriram Pistons and Rings Buyback offer, buyback price, buyback size, Shriram Pistons and Rings Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – Shriram Pistons and Rings Share Price
Shriram Pistons and Rings Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | [●] |
| Closing Date | [●] |
| Buyback Offer Amount | Rs.35,70,00,000 |
| Buyback No. of Shares | 3,50,000 |
| Face Value | Rs.10 |
| Date of Buyback Approval | July 30, 2021 |
| Date of Public Announcement | July 30, 2021 |
| Buy Back Price | Rs.1,020 |
| Buy Back Premium | 9.83% |
| Date of Board Meeting | July 30, 2021 |
Shriram Pistons and Rings Buyback Opening and Closing Date
The starting and closing date of this buyback are [●] and [●].
Shriram Pistons and Rings Buyback Cash Offer
The Cash Offer to Buy-back up to 3,50,000 fully paid-up equity shares of the Company of the face value of Rs.10 each, representing 1.56% of the total number of equity shares.
Shriram Pistons and Rings Buyback Record Date
The decided record date of this buyback is August 12, 2021.
Shriram Pistons and Rings Buyback Price
At a price of Rs.1,020 per Equity Share.
Shriram Pistons and Rings Buyback Size
At a buyback price of Rs.1,020/- payable in cash for an aggregate consideration not exceeding Rs.35,70,00,000/-.
Shriram Pistons and Rings Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
Shriram Pistons and Rings Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 1,020 | 204000 | 18000 | 1.94% |
| 40% | 400 | 1,020 | 408000 | 36000 | 3.87% |
| 60% | 600 | 1,020 | 612000 | 54000 | 5.81% |
| 80% | 800 | 1,020 | 816000 | 72000 | 7.74% |
| 100% | 1000 | 1,020 | 1020000 | 90000 | 9.68% |
Profit is calculated from 18 August 2021 share price i.e. Rs.930 per share of Shriram Pistons and Rings.
According to the above table, if a shareowner applies for 1000 shares of Shriram Pistons and Rings & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.1,020 per share & receive Rs.18000 as profit amount & 1.94% 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.1,020 & receive a profit of Rs.54000 @ 5.81% profit percentage.
Shriram Pistons and Rings Buyback Overview
The Company was incorporated as ‘Shama Pistons & Rings Limited’ on December 9, 1963, as a public limited company under the provisions of the Companies Act, 1956. Subsequently, the name of the Company was changed to its present name i.e. ‘Shriram Pistons & Rings Limited’ on October 19, 1972.
The registered office of the Company is presently situated at 3 rd Floor, Himalaya House, 23, Kasturba Gandhi Marg, New Delhi – 110001, India. 14.2 The Company was originally listed at Delhi Stock Exchange Limited (“DSE”), a regional stock exchange, on September 23, 1965.
Pursuant to the de-recognition of DSE, the Equity Shares were shifted to the dissemination board of BSE Limited. Subsequently, the Company made an application to NSE for a listing of its Equity Shares and NSE issued its in-principle approval on 37 May 31, 2016, and the Equity Shares were admitted for trading at NSE (Code: SHRIPISTON) w.e.f. June 2, 2016. The ISIN of the Equity Shares INE526E01018. Currently, the Equity Shares are listed only at NSE.
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Company Finances – Shriram Pistons and Rings
The brief audited financial information of the Company as extracted from the audited standalone results for the financial years ended March 31, 2021, March 31, 2020, and March 31, 2019, are provided below:
[In Rs. million]
| Particulars | 12 Months period ended March 31 | ||
| 2021 | 2020 | 2019 | |
| Total Income | 16,161.75 | 16,266.12 | 19,785.35 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 14,961.99 | 15,401.97 | 17,692.97 |
| Interest | – | – | – |
| Depreciation and amortization expenses | 1,025.58 | 1,030.43 | 943.26 |
| Profit before tax | 1,199.76 | 864.15 | 2,092.38 |
| Provision for tax (including Deferred Tax) |
312.25 | 133.80 | 707.88 |
| Profit /(Loss) after tax | 887.51 | 730.35 | 1,384.50 |
| Equity Share Capital | 223.75 | * 223.75 | 223.75 |
| Reserve and Surplus | 10,772.12 | 9,994.55 | 9,837.00 |
| Net-worth | 11,384.15 | 10,607.72 | 10,166.92 |
| Total Debt (Excluding working capital loans) | 1,215.84 | 1,072.75 | 1,254.21 |
Shriram Pistons and Rings Ltd Buyback Dates
| Date of Board Meeting approving the Buyback | July 30, 2021 |
| Date of publication of Public Announcement for Buyback | July 30, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | August 12, 2021 |
| Buyback Opening date | [●] |
| Buyback Closing date | [●] |
| Last date of receipt of the completed tender form and other specified documents | [●] |
| 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 Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated July 30, 2021, for the Buyback of Equity Shares published on August 3, 2021, in the following newspapers:
| Publication | Language | Date of Publication | Edition |
| Financial Express | English | August 3, 2021 | All editions |
| Jansatta | Hindi | August 3, 2021 | All editions |
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The necessity of Shriram Pistons and Rings Buyback
The Buyback is a capital allocation decision taken by the Company. The Buyback is being undertaken, inter-alia, for the following reasons:
1. The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares in proportion to their shareholding, thereby, optimizing returns to the shareholders and enhancing the overall shareholders’ value;
2. The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve allocation to the small shareholders, the higher of (a) a number of Equity Shares entitled as per their holdings; or (b) 15% of the number of Equity 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” in accordance with the definition as per Regulation 2(1)(n) of the Buyback Regulations;
3. The Buyback may help in improving return on equity, by a reduction in the equity base, improvement in earnings per Equity Share, and enhanced return on invested capital which may consequentially lead to a long-term increase in shareholders’ value. 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 and continued capital investment, as and when required; and
4. The Buyback gives an option to the shareholders holding Equity Shares, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback, without any additional investment.
Impact of Shriram Pistons and Rings Buyback on the Company
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.
The Buyback is not expected to impact growth opportunities for the Company. 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.
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 standalone financial statements for the period ended on March 31, 2021, are as under:
| Parameter (based on Audited Condensed Financial Statements as at and for the period ended June 30, 2020 | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in million) | 11,384.15 | 11,027.15 |
| Return on Net worth (%) | 7.80 | 7.88 |
| Earnings Per Share (Rs) | 39.67 | 39.48 |
| Book Value per Share (Rs) | 491.44 | 483.04 |
| P/E as per the latest audited standalone financial statements (BSE) | 20.07 | 20.17 |
| Total Debt / Equity Ratio | 0.107 | 0.110 |
Basis of Calculating Shriram Pistons and Rings Buyback Price
- The Equity Shares are proposed to be bought back at a price of INR 1,020/- (Rupees One Thousand Twenty only) per Equity Share.
2. The Buyback Price has been arrived at after considering various factors including, but not limited to the net worth of the Company, price-earnings ratio, impact on other financial parameters and the possible impact of Buyback on the earnings per Equity Share, the trends in the volume-weighted average prices and the closing price of the Equity Shares on the date of prior intimation to NSE of the date of the meeting of the Board to consider the Buyback.
3. The Buyback Price represents:
(a) the premium of 9.83% over the volume-weighted average market price of the Equity Shares on NSE during the 2 (two) weeks period preceding the date of prior intimation to NSE of the date of the Board Meeting wherein proposal of the Buyback was to be considered.
(b) a premium of 20.91% over the volume-weighted average market price of the Equity Shares on NSE during the 3 (three) months period preceding the date of prior intimation to NSE of the date of the Board Meeting wherein proposal of the Buyback was to be considered. 10.3.3 premium of 20.35% over the volume-weighted average market price of the Equity Shares on NSE during the 60 (sixty) trading days period preceding the date of prior intimation to NSE of the date of the Board Meeting wherein proposal of the Buyback was to be considered.
(c) Premium of 8.55% over the closing price of the Equity Shares on NSE on the date of prior intimation to NSE of the date of the Board Meeting wherein proposal of the Buyback was to be considered i.e. July 26, 2021.
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Source of Funds for the Buyback
- The maximum amount required for Buyback will not exceed INR 35,70,00,000/- (Rupees Thirty-Five Crore Seventy Lakh only) (excluding Transaction Costs). The Buyback Size constitutes 3.25% and 3.25% of the aggregate of the total paid-up equity share capital and free reserves as per the latest audited standalone and consolidated financial statements of the Company as of March 31, 2021, respectively, which is within the statutory limit of 10% of the total paid-up equity share capital and free reserves of the Company as at March 31, 2021, and is in compliance with Regulation 4(i) of the Buyback Regulations and Section 68(2) of the Companies Act.
- The funds for the implementation of the proposed Buyback will be sourced out of the free reserves of the Company and/or such other sources as may be permitted by law. The funds borrowed from banks and financial institutions, if any, will not be used for the Buyback.
- The Company shall transfer from its free reserves and/or such other sources as may be permitted by law, 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 financial statement.
Shriram Pistons and Rings – Manager to the Buyback
| Buyback Manager Details |
| Edelweiss Financial Services Limited Address: Edelweiss House, 6th Floor, off CST Road, Kalina, Mumbai – 400 098 Tel no.: + 91 22 4009 4400 Fax no.: +91 22 4086 3610 Email: sprl.buyback@edelweissfin.com Contact Person: Dhruv Bhavsar Website: www.edelweissfin.com SEBI registration no.: INM00000010650 Validity Period: Permanent CIN: L99999MH1995PLC094641 |
Shriram Pistons and Rings – Registrar to the Buyback
| Registrar Details |
| Alankit Assignments Limited Address: 4E/2, Alankit House, Jhandewalan Extn., New Delhi-110055 Tel. no.: +91 11 4254 1234 Fax no.: +91 11 2355 2001 Email: sprlbuyback@alankit.com, abhinavka@alankit.com Contact person: Abhinav Kumar Agrawal Website: www.alankit.com Sebi registration no.: INR000002532 Validity Period: Permanent CIN: U74210DL1991PLC042569 |
Shriram Pistons and Rings Contact Details
| Company Contact Details |
| Shriram Pistons & Rings Limited CIN: L29112DL1963PLC004084 Registered Office: 3 rd Floor, Himalaya House, 23, Kasturba Gandhi Marg, New Delhi – 110001, India Contact Person: Mr. Naveen Agarwal, Alternate Company Secretary Tel No.: +91 11 2331 5941; Fax No.: +91 11 2331 1203; E-mail: compliance.officer@shrirampistons.com; Website: www.shrirampistons.com |
Shriram Pistons and Rings Buyback News
News 1 – Shriram Pistons and Rings Buyback PDF / Letter of Offer [Download]
News 2 – Shriram Pistons and Rings Ltd – Draft Letter of Offer [Download]
FAQs of Shriram Pistons and Rings Buyback
What is the Shriram Pistons and Rings Buyback Period?
Shriram Pistons and Rings 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. NA. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
What type of buyback is Shriram Pistons and Rings Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The 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 Shriram Pistons and Rings Buyback Offer?
Shriram Pistons and Rings Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 3,50,000 Fully paid up Equity shares, adhering to the buyback price.
When Shriram Pistons and Rings Buyback offer will start?
As per the released schedule, the Shriram Pistons and Rings Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Shriram Pistons and Rings Buyback at all times, we ensure you have access to the right data.
When is the closing date of Shriram Pistons and Rings Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Shriram Pistons and Rings Buyback. The buyback would close on NA. The closing date is the last day on which the Buyback shall be open for the shareholders.
What is the offer price for Shriram Pistons and Rings Buyback?
The amount at which the shares are taken back by the company is referred to as Shriram Pistons and Rings Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.1,020, the price paid to each eligible shareholder.
What is the record date for Shriram Pistons and Rings Buyback offer?
The record date of Shriram Pistons and Rings Buyback is August 12, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, the letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Shriram Pistons and Rings Buyback?
Shriram Pistons and Rings Buyback Size is Rs.35,70,00,000 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 Shriram Pistons and Rings Buyback?
The objective of the Shriram Pistons and Rings 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 of Shriram Pistons and Rings Buyback offer?
The designated registrar of Shriram Pistons and Rings Buyback is Alankit Assignments 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 of the Shriram Pistons and Rings Buyback offer?
The manager of the Shriram Pistons and Rings Buyback is Edelweiss Financial Services Limited. The manager basically ensures that the company following up buyback strictly adheres to and is in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Shriram Pistons and Rings buyback acceptance ratio?
The 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 buy back 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 Shriram Pistons and Rings 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 Shriram Pistons and Rings Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Shriram Pistons and Rings Buyback Dates.
What can be the Impact of Shriram Pistons and Rings 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. 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 Shriram Pistons and Rings 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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