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SKP Securities Limited Buyback – Review, Offer Details, Price, Dates & more

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

SKP Securities Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening Date
Buyback Closing Date
Buyback Offer AmountRs. 6,96,50,000/-
Buyback No. of Shares9,95,000
Face ValueRs. 10/-
Date of Buyback Approval27.04.2019
Date of Public Announcement24.06.2019
Buy Back Price Rs. 70/-
Buy Back Premium14.38%

SKP Securities Buyback Opening and Closing Date

The starting and closing dates of this buyback are NA.

SKP Securities Buyback Cash Offer

The Cash Offer to Buy-back up to 9,95,000 (Nine Lakhs Ninety-Five Thousand Only) fully paid-up equity shares of the Company of face value of Rs. 10 each.

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

The Buyback is for an aggregate amount not exceeding Rs. 6,96,50,000/- (Rupees Six Crores Ninety-Six Lakh Fifty Thousand Only).


SKP Securities 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%200701400010001.54%
40%400702800020003.08%
60%600704200030004.62%
80%800705600040006.15%
100%1000707000050007.69%

Profit is calculated from 5th July 2019 share price i.e. Rs.65 per share of SKP Securities Limited.

According to the above table, if a share owner applies for 1000 shares of SKP Securities Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.70 per share & receive Rs.1000 as profit amount & 1.54% 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.3000 @ 4.62% profit percentage.


SKP Securities Buyback Overview

SKP Securities BuybackThe 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.

SKP Securities 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 standalone audited financial statements of the Company for the last three financial years ended March 31, 2019, March 31, 2018 and March 31, 2017 are set out below:

(Rs in Lakhs)

ParticularsMarch 31,
2019
March
31, 2018
March 31,
2017
Audited
Total Income1201.031822.221259.17
Total Expenses898.55983.25844.12
Finance Cost31.3127.0823.42
Depreciation and Amortization28.2622.9324.99
Profit/(Loss) before Tax242.91788.96365.04
Profit/(Loss) after Tax183.11624.02305.95
Equity share capital439.94439.94561.50
Other Equity2463.972283.382159.70
Less: Other Comprehensive Income
Net worth2903.912723.322721.20
Debt (including working capital)41.45364.28182.50

SKP Securities Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares27.04.2019, Saturday
Date of publication of Public Announcement for the Buy-back25.06.2019, Tuesday
Record Date for determining the Buy-back Entitlement and the Eligible Shareholders05.07.2019, Friday
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 SKP Securities Limited Buyback

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

  • The 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;
  • 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 Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • 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 Buyback on the Company

The Company believes that the Buyback is not likely to cause any material impact on the profitability/earnings of the Company except a reduction in the investment income, which the Company could have otherwise earned on the amount distributed towards Buyback.

Assuming response to the Buyback is to the extent of 100% from all the Eligible Shareholders up to their entitlement, the aggregate shareholding of the Promoter and Promoter Group Companies after the completion of the Buyback shall increase/decrease to [*]% of the post-Buyback total paid-up equity share capital of the Company from 74.99% of the pre-Buyback total paid-up equity share capital of the Company,

Response to the Buyback is to the extent of 100% from all the Eligible Shareholders up to their entitlement, the aggregate shareholding of the public in the Company shall increase/decrease to [*]% of the post-Buyback total paid-up equity share capital of the Company from 25.01% of the pre-Buyback total paid-up equity share capital of the Company.

The debt-equity ratio post buyback will 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%.

Salient Financial Parameters consequent to the Buyback based on the latest Standalone audited results as on March 31, 2019 are as under:

ParametersPre-Buy BackPost Buyback
StandaloneConsolidatedStandaloneConsolidated
Net Worth (Rs in Lakhs)2903.912906.862207.412210.36
Profit/(Loss) for the period (Rs in
Lakhs)
Return on Net Worth %6.316.348.308.34
Earnings Per Equity Share (EPS)
(Basic) (in Rs)
4.164.195.385.42
Book Value per share (in Rs)66.0066.1064.8464.93
Price Earnings (PE) Multiple16.2916.1712.6012.50
Debt/ Equity ratio0.010.010.020.02

Basis of Calculating SKP Securities Buyback 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:

  • 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.
  • A 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.
  • 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.
  • A 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 period: Permanent
(Contact Person: Mr. Anup Kumar Sharma)
31 Ganesh Chandra Avenue, 2nd Floor,
Suite No –2C, Kolkata-700 013
Phone No : (033) 2225-3940 / 3941
Fax : (033) 2225-3941
Email: [email protected]
Website: www.vccorporate.com

SKP Securities Limited – Registrar to the Buyback

MAHESHWARI DATAMATICS PRIVATE LIMITED
CIN: U20221WB1982PTC034886
SEBI REG. NO. INR000000353
Validity Period : Permanent
(Contact Person: Mr. S. Rajagopal)
23, R.N. Mukherjee Road, 5th Floor,
Kolkata – 700 001
Tel.: +91 33 2243 5029 / 5809;
Fax: +91 33 2248 4787
Email: [email protected]
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
Phone: +91 033 4007 7000; Fax: +91 033 4007 7007
Website: www.skpsecurities.com; Email: [email protected]
Company Secretary and Compliance Officer: Alka Khetawat

 


SKP Securities Limited Buyback News

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


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