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SKP Securities Buyback Review, Offer Details, Price, Dates, Size & more

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

SKP Securities Limited Buyback Details

Buyback TypeTender Offer
Opening Date14 Aug 19
Closing Date28 Aug 19
Buyback Offer AmountRs. 105,00,00,00,000/-
Buyback No. of Shares32,30,76,923
Face ValueRs. 2
Date of Buyback ApprovalApril 16, 2019
Date of Public AnnouncementJune 5, 2019
Buy Back PriceRs. 325/-
Buy Back Premium22.16%
Date of Board MeetingApril 16, 2019

SKP Securities Buyback Opening and Closing Date

The starting and closing date of this buyback is NA.

SKP Securities Buyback Cash Offer

The Cash Offer to Buy-back up to 32,30,76,923 fully paid-up equity shares of the Company of face value of Rs. 2 each, representing 5.35% of the total number of equity shares.

SKP Securities Buyback Record Date

The decided record date is Friday, June 21, 2019.

SKP Securities Buyback Price

At a price of Rs.325 (Rupees Three Hundred and Twenty Five only) per Equity Share.

SKP Securities Buyback Size

At a buyback price of Rs.325/- payable in cash for an aggregate consideration not exceeding Rs.105,00,00,00,000 (Rupees Ten Thousand and Five Hundred Crores Only).

SKP Securities 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.


SKP Securities 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%2003256500052001.74%
40%400325130000104003.48%
60%600325195000156005.22%
80%800325260000208006.96%
100%1000325325000260008.70%

Profit is calculated from 17th June 2019 share price i.e. Rs.299 per share of SKP Securities Limited.

According to the above table, if a shareowner applies for 1000 shares of SKP Securities limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.325 per share & receive Rs.5200 as profit amount & 1.74% 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.325 & receive a profit of Rs.15600 @ 5.22% profit percentage.


SKP Securities Limited Buyback Overview

SKP Securities Limited (“SKP Securities” or the “Company”) an Indian company incorporated on December 29, 1945, is a leading global information technology, consulting and business process services company. The Company has over 1,70,000 dedicated employees serving clients across six continents.

The name of the Company was changed from Western India Vegetable Products Limited to SKP Securities Products Limited on June 7, 1977, and subsequently to SKP Securities Limited on April 28, 1984. The Company has its registered office situated at Doddakannelli, Sarjapur Road, Bengaluru 560 035, India.

The Company shifted its registered office from the State of Maharashtra to the State of Karnataka on July 10, 1996. The Equity Shares of the Company were listed in the year 1995 on the NSE (Code: SKP Securities) and an application for listing of equity shares was filed with BSE in the year 1946-47 (Code: 507685). The ADRs of the Company were listed on NYSE (Code: WIT) in the year 2000. The ISIN Number of the Company is INE075A01022.


Company Finances – SKP Securities Limited

The salient financial information of the Company as extracted from the audited standalone financial statements for the three years ended March 31, 2019, March 31, 2018 and March 31, 2017 are as under:

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
201920182017
Total Income50,69,23747,18,96048,61,777
Total Expenses (excluding finance cost, depreciation & amortization)39,36,27135,75,61536,49,078
Interest52,49638,43039,223
Depreciation and amortization expenses93,4291,01,4831,04,766
Profit before tax9,87,04110,03,43210,68,710
Provision for tax
(including Deferred Tax)
2,25,6472,31,1482,52,542
Profit /(Loss) after tax7,61,3947,72,2848,16,168
Equity Share Capital1,20,67990,48048,618
Other Equity
Networth49,39,19942,26,25946,70,561
Total Debt (Excluding working capital loans)2,2007,2421,14,626

SKP Securities Limited Buyback Dates

Date of Board Meeting approving the BuybackApril 16, 2019
Date of publication of Public Announcement for BuybackJune 5, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersJune 21, 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 Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated June 4, 2019 for the Buyback of Equity Shares published on June 5, 2019 in the following newspapers:

PublicationLanguageEdition
Business StandardEnglishAll editions
Business StandardHindiAll editions
Hosa DiganthaKannadaBengaluru

Necessity of SKP Securities Limited Buyback

The Buyback is being undertaken for the following reasons:

  • The Buyback will help the Company distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing the overall return to Equity Shareholders;
  • The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, involves a reservation of up to 15% of the Buyback Size for Small Shareholders. The Company believes that this reservation of up to 15% for Small Shareholders would benefit a large number of the Company’s public shareholders, who would be classified as Small Shareholders for the purposes of the Buyback;
  • The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company; and
  • The Buyback gives the Eligible Shareholders the choice to either participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.

Impact of SKP Securities 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 that the response to the Buyback is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement, the aggregate shareholding of the Promoter and Promoter Group post completion
of the Buyback may increase from 73.83% to [●]%.

Also, if none of the public shareholders participate and only the Promoter and Promoter Group participate to the extent of the Buyback Entitlement, their shareholding may reduce from 73.83% to [●]% of the total equity share capital of the Company.

The debt-equity ratio following the Buyback, both on standalone and consolidated basis, shall be compliant with the permissible limit of 2:1 prescribed by the Companies Act even if the response to the Buyback is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement.

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)49,39,19938,89,199
Return on Net worth (%)15.42%19.58%
Earnings Per Share (Rs)12.6713.39
Book Value per Share (Rs)81.8668.10
P/E as per the latest audited standalone financial statements22.1720.98
Total Debt / Equity Ratio0.100.13

Basis of Calculating SKP Securities Buyback Price

The Buyback Price has been arrived at after considering various factors such as

  • the share price benchmarks on the NSE, the stock exchange where the maximum volume of trading in the Equity Shares is recorded,
  • the net worth of the Company, and
  • the impact on the earnings per Equity Share.

More on SKP Securities Buyback Price Calculation

The Buyback Price represents a premium of 22.16% over the volume weighted average market price of the Equity Shares on the NSE for the 60 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback and 24.15% over the volume weighted average market price of the Equity Shares on the NSE for the 10 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback.

The closing market price of the Equity Shares as on the date of intimation of the Board Meeting for considering the Buyback, being April 10, 2019, was Rs. 281.00 (Rupees Two Hundred and Eighty One only) on both NSE and BSE.


Source of Funds for the Buyback

The funds for the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Borrowed funds will not be used for the Buyback.

The Company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.


SKP Securities Limited – Manager to the Buyback

JM Financial Limited
7th Floor, Cnergy,
Appasaheb Marathe Marg, Prabhadevi,
Mumbai – 400025, Maharashtra, India
Tel.: +91 22 6630 3030
Fax: +91 22 6630 3330
Email: SKP [email protected]
Website: www.jmfl.com
Contact Person: Ms. Prachee Dhuri
SEBI Regn. No.: INM000010361
Validity Period: Permanent
Corporate Identification Number: L67120MH1986PLC038784

SKP Securities Limited – Registrar to the Buyback

Karvy Fintech Private Limited
Karvy Selenium, Tower- B, Plot No 31 & 32, Financial district,
Nanakramguda, Gachibowli, Hyderabad, Telangana State, 500032,
India.
Tel: +91 40 67162222
Fax: +91 40 23431551
Email: SKP [email protected]
Website: https://karisma.karvy.com
Contact Person: Mr. M. Murali Krishna
SEBI Regn. No.: INR000000221
Validity Period: Permanent
Corporate Identification Number: U72400TG2017PTC117649

SKP Securities Limited Contact Details

Company Contact Details
SKP Securities LIMITED
Registered Office and Correspondence Address: Doddakannelli, Sarjapur Road, Bengaluru – 560 035, India.
Tel. No.: +91 80 2844 0011; Fax: +91 80 2844 0054
E-mail: [email protected] Securities.com; Website: www.SKP Securities.com
Corporate Identification Number (CIN): L32102KA1945PLC020800
Contact Person: Mr. M Sanaulla Khan, Company Secretary;
Tel. No.: +91 80 2844 0011 (ext: 226185); Fax: +91 80 2844 0054;
E-mail: [email protected] Securities.com

 


SKP Securities Limited Buyback News

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

News 2 – SKP Securities Ltd – Public Announcement


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