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 DateOctober 25, 2019
Closing DateNovember 08, 2019
Buyback Offer AmountRs. 6,96,50,000/-
Buyback No. of Shares9,95,000
Face ValueRs. 2
Date of Buyback ApprovalApril 27, 2019
Date of Public AnnouncementJune 24, 2019
Buy Back PriceRs. 70/-
Buy Back Premium22.62%
Date of Board MeetingApril 27, 2019

SKP Securities Buyback Opening and Closing Date

The starting and closing date of this buyback is from October 25, 2019 to November 08, 2019.

SKP Securities Buyback Cash Offer

The Cash Offer to Buy-back up to 9,95,000  fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 22.62% of the total number of equity shares.

SKP Securities Buyback Record Date

The decided record date is Friday, July 05, 2019.

SKP Securities Buyback Price

At a price of Rs.70 (Rupees Seventy only) per Equity Share.

SKP Securities Buyback Size

At a buyback price of Rs.70/- payable in cash for an aggregate consideration not exceeding Rs.6,96,50,000.

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%200701400038007.45%
40%4007028000760014.90%
60%60070420001140022.35%
80%80070560001520029.80%
100%100070700001900037.25%

Profit is calculated from 22 Oct 2019 share price i.e. Rs.51 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.70 per share & receive Rs.3800 as profit amount & 7.45% 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.70 & receive a profit of Rs.11400 @ 22.35% profit percentage.


SKP Securities Limited Buyback Overview

SKP Securities Limited was originally incorporated under the name of SKP Corporate Services Private Limited on May 18, 1990, under the Companies Act, 1956 as a Private Limited company under the Registrar of Companies, West Bengal.

The registered office of the Company is situated at Chatterjee International Centre, Level 21, 33A Jawaharlal Nehru Road, Kolkata- 700 071. The equity shares of the Company are listed at BSE wef October 18, 1995.

The Company is engaged in the business of providing Stock broking, mutual fund distribution and corporate advisory services.

Its a member of NSE and BSE, Depository Participant on NSDL & CDSL, Research Analyst and AMFI registered Mutual Funds Advisor. The Company has recently been registered with SEBI as a Category I Merchant Banker vide Permanent Registration Certificate dated April 3, 2019 and a Portfolio Manager vide Permanent Registration Certificate dated April 10, 2019


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 Income1201.031822.221259.17
Total Expenses (excluding finance cost, depreciation & amortization)898.55983.25844.12
Interest31.3127.0823.42
Depreciation and amortization expenses28.2622.9324.99
Profit before tax242.91788.96365.04
Provision for tax
(including Deferred Tax)
59.80164.9459.09
Profit /(Loss) after tax183.11624.02305.95
Equity Share Capital439.94439.94561.50
Other Equity2463.972283.382159.70
Networth2903.912723.322721.20
Total Debt (Excluding working capital loans)41.45364.28182.50

SKP Securities Limited Buyback Dates

Date of Board Meeting approving the BuybackApril 27, 2019
Date of publication of Public Announcement for BuybackJune 25, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersJuly 05, 2019
Buyback Opening dateOctober 25, 2019
Buyback Closing dateNovember 08, 2019
Last Date of verification of Tender Forms by the RegistrarNovember 13, 2019
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarNovember 13, 2019
Last date of Settlement of Bids on the BSE LimitedNovember 20, 2019
Last date of return of unaccepted Equity Shares by BSE LimitedNovember 20, 2019
Last date of Extinguishment of Equity SharesNovember 27, 2019

Details of Public Announcement

In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated 24.06.2019, which was published in the following newspapers on 25.06.2019:

PublicationLanguageEdition
Financial ExpressEnglish National DailyAll editions
JansattaHindi National DailyAll editions
AajkalBengaliKolkata Edition

Necessity of SKP Securities Limited Buyback

Buyback is being undertaken, inter-alia, for the following reasons:

  • This Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby enhancing the overall return to shareholders;
  • The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of number of shares as per their entitlement or 15% of the number of shares to be bought back whichever is higher, 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” as per Regulation 2(i)(n) of the SEBI Buyback Regulations; iii. The Buyback may help in improving return on equity, by reduction in the equity base,
  • The Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • This Buyback gives an option to the Shareholders holding Equity Shares of the Company, 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 offer, without additional investment.

Impact of SKP Securities Limited Buyback on the Company

Buyback 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 full response to the Buyback, the funds deployed by the Company towards the Buyback would not exceed Rs. 6,96,50,000/- .

The Promoter and Promoter Group, being in control of the Company have expressed vide letters dated April 27, 2019 their intention to participate in the proposed Buyback and tender an aggregate of 32,99,000 equity shares or any such lower number of equity shares as required in compliance with the Buyback Regulations.

Salient financial parameters pursuant to the Buyback based on the Standalone and Consolidated interim audited financial statements of the Company for the year ended March 31, 2019 are set out below:

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)2903.912207.41
Return on Net worth (%)6.31%8.30%
Earnings Per Share (Rs)4.165.38
Book Value per Share (Rs)66.0064.84
P/E as per the latest audited standalone financial statements16.2912.60
Total Debt / Equity Ratio0.010.02

Basis of Calculating SKP Securities Buyback Price

The Equity Shares of the Company are proposed to be bought back at a price of Rs. 70/-  per Equity Share (“Buyback Offer Price”).

The Buyback Offer Price has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices of the Equity Shares on the BSE Limited (“BSE”) where the Equity Shares are traded, 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.

More on SKP Securities Buyback Price Calculation

The Buyback Offer Price represents:

(i) Premium of 42.97% over the volume weighted average market price of the Equity Shares on BSE, during the three months preceding the date of intimation to the BSE for the Board Meeting to consider the proposal of the Buyback. (ii) The premium of 16.59% over the volume weighted average market price of the Equity Shares on BSE, for two weeks preceding the date of intimation to the BSE for the Board Meeting to consider the proposal of the Buyback.

(iii) Premium of 8.70% over the closing price of the Equity shares on the BSE as on one day prior the date of intimation of Buyback.

(iv) Premium of 14.38% over the closing price of the Equity shares on the BSE as on the day of intimation of Buyback.


Source of Funds for the Buyback

The funds for the implementation of the Buyback will be sourced out of the free reserves (including securities premium) of the Company and/or such other sources as may be permitted by the Buyback Regulations or the Companies Act.

Company shall transfer from its free reserves or securities premium account, 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 balance sheet.

The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.


SKP Securities Limited – Manager to the Buyback

VC Corporate Advisors Private Limited
CIN: U67120WB2005PTC106051
SEBI REGN No.: INM000011096
Validity of Registration: Permanent
(Contact Person: Ms. UrviBelani)
31 Ganesh Chandra Avenue, 2nd Floor,
Suite No –2C, Kolkata-700 013.
Phone No : (033) 2225-3940
Fax : (033) 2225-3941
Email: mail@vccorporate.com
Website: www.vccorporate.com

SKP Securities Limited – Registrar to the Buyback

Maheshwari Datamatics Private Limited
CIN: U20221WB1982PTC034886
SEBI REGN No.: INR000000353
Validity of Registration: Permanent
(Contact Person: Mr. S. Rajagopal)
23, R.N. Mukherjee Road, 5th Floor,
Kolkata – 700 001
Tel No.: (033) 2248-2248
Fax No.: (033) 2248 4787
Email: mdpldc@yahoo.com
Website: www.mdpl.in

SKP Securities Limited Contact Details

Company Contact Details
SKP SECURITIES LIMITED
CIN: L74140WB1990PLC049032
Registered Office: Chatterjee International Centre, Level 21,
33A, Jawaharlal Nehru Road, Kolkata – 700 071
Tel. No.: +91 033 4007 7000; Fax: +91 033 4007 7007
Website: www.skpsecurities.com; Email: cs@skpsecurities.com
Company Secretary and Compliance Officer: Ms. Alka Khetawat

 


SKP Securities Limited Buyback News

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

News 2 – SKP Securities Ltd – Public Announcement


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