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Smartlink Holdings Buyback Review, Offer Details, Price, Dates, Size & more

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

Smartlink Holdings Limited Buyback Details

Buyback TypeTender Offer
Opening Date18 October 2019
Closing Date1 November 2019
Buyback Offer AmountRs. 47,45,00,000
Buyback No. of Shares36,50,000
Face ValueRs. 2/-
Date of Buyback Approval14 June 2019
Date of Public Announcement2 August 2019
Buy Back PriceRs. 130/-
Buy Back Premium19.65%
Date of Board Meeting31 July 2019

Smartlink Holdings Buyback Opening and Closing Date

The starting and closing date of this buyback are from 18 October 2019 to 1 November 2019.

Smartlink Holdings Buyback Cash Offer 

The Cash Offer to Buy-back up to 36,50,000 fully paid-up equity shares of the Company of face value of Rs. 2 each

Smartlink Holdings Buyback Record Date

The decided record date is 13 August 2019.

Smartlink Holdings Buyback Price

At a price of Rs.130 (Rupees One Hundred and Thirty Only) per Equity Share.

Smartlink Holdings Buyback Size

At a buyback price of Rs.130/- payable in cash for an aggregate consideration not exceeding Rs. 54,60,00,000.

Smartlink Holdings 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.


Smartlink Holdings 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%2001302600086009.89%
40%400130520001720019.77%
60%600130780002580029.66%
80%8001301040003440039.54%
100%10001301300004300049.43%

Profit is calculated from 14 Oct 2019 share price i.e. Rs. 87 per share of Smartlink Holdings Limited.

According to the above table, if a shareowner applies for 1000 shares of Smartlink Holdings limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.130 per share & receive Rs.8600 as profit amount & 9.89% 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.130 & receive a profit of Rs.25800 @ 29.66% profit percentage.


Smartlink Holdings Limited Buyback Overview

Smartlink Network System Limited BuybackThe Company was incorporated on 31 March 1993 under the Companies Act, 1956. The registered office of the Company is located at L-7, Verna Industrial Estate, Verna, Salcete, Goa, 403722. The name of the Company has been changed from Smartlink Network Systems Limited to Smartlink Holdings Limited pursuant to the certificate of incorporation issued by the Ministry of Corporate Affairs (Registrar of Companies) dated 18 April 2018.

The Company is in the business of investment of funds in mutual funds and other investments and investments in its subsidiary companies. Company has received the certificate of registration to carry on the business of non – banking financial institution without accepting public deposits from Reserve Bank of India dated 2 May 2018* issued by the Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934.

The Company has three (3) subsidiaries namely (i) Digisol Systems Limited; (ii) Synegra EMS Limited; and (iii) Telesmart SCS Limited ((i) – (iii) collectively referred to as the “Group”). The Group is in the business of developing, manufacturing, marketing, distributing and servicing of networking products and structured cabling products.

The Group has its manufacturing facility for the manufacturing of networking and Structured Cabling Systems (SCS) products at Verna, Goa.

Group offers range of products for various communication needs including Switching, Broadband Routing, Wireless LAN and Surveillance


Company Finances – Smartlink Holdings Limited

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

[In Rs. Lakhs]

Particulars12 Months period ended March 31
(Audited)
201920182017
Total Income20,28,00,60920,96,66,15124,16,51,931
Total Expenses (excluding finance cost, depreciation & amortization)43,51,62,0035,18,46,88010,99,34,330
Interest4,97,1826,53,56214,78,061
Depreciation and amortization expenses1,01,71,0901,27,86,0311,19,89,549
Profit before tax(24,30,29,666)14,43,79,67810,09,67,509
Provision for tax
(including Deferred Tax)
3,41,80,9573,43,60,0434,92,40,801
Profit /(Loss) after tax(27,72,10,623)11,00,19,6355,17,26,708
Equity Share Capital3,39,00,0004,51,00,0004,51,00,000
Networth2,46,52,54,0263,41,44,64,6493,35,87,26,313
Total Debt (Excluding working capital loans)

Smartlink Holdings Limited Buyback Dates

Date of Board Meeting approving the Buyback14 June 2019
Date of publication of Public Announcement for Buyback2 August 2019
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders13 August 2019
Buyback Opening date18 October 2019
Buyback Closing date1 November 2019
Last Date of verification of Tender Forms by the Registrar4 November 2019
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar11 November 2019
Last date of Settlement of Bids on the BSE Limited13 November 2019
Last date of return of unaccepted Equity Shares by BSE Limited13 November 2019
Last date of Extinguishment of Equity Shares22 November 2019

Details of Public Announcement

In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated 1 August 2019, for the Buyback of Equity Shares published on 2 August 2019, in the following newspapers within two working days from the date of declaration of results of the postal ballot for special resolution on 31 July 2019.

PublicationLanguageEdition
Financial ExpressEnglishAll editions
JansattaHindiAll editions
Goa DootMarathiGoa edition

Necessity of Smartlink Holdings Limited Buyback

The Buyback is being undertaken for the following reasons:

Buyback is a more efficient form of distributing surplus cash to the shareholders of the Company holding Equity Shares of the Company, inter-alia, for the following reasons:

  • The Buyback will help the Company to distribute surplus cash to its Equity Shareholders holding Equity Shares in proportion to their shareholding, thereby, enhancing the overall return to the Shareholders;
  • 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) number of shares entitled as per their holdings; or (b) 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” in accordance with the definition as per Regulation 2(1)(n) of the Buyback Regulations;
  • The Buyback would help in improving return on equity, by a reduction in the equity base, thereby leading to long term increase in Shareholders’ value; and
  • The 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 to not participate and enjoy a resultant increase in their percentage shareholding, post the Buyback Offer, without additional investment.

Impact of Smartlink Holdings Limited 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 of in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.

In the event that there is 100% acceptance of the Equity Shares tendered in the Buyback from the Equity Shareholders on a proportionate basis, the funds deployed by the Company towards the Buyback would be Rs. 47,45,00,000 (Rupees Forty Seven Crore Forty Five Lakh Only).

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, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in cr)246.53199.08
Return on Net worth (%)(11.24)%(13.92)%
Earnings Per Share (Rs)(15.03)(18.73)
Book Value per Share (Rs)145.44149.68
P/E as per the latest audited standalone financial statements(6.05)(4.85)
Total Debt / Equity Ratio

Basis of Calculating Smartlink Holdings Buyback Price

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

  • Record Date and Ratio of Buyback as per the Buyback Entitlement in each Category
  • Basis of Acceptance of Equity Shares validly tendered in the Reserved Category for Small Shareholders
  • The basis of Acceptance of Equity Shares validly tendered in the General Category
  • Basis of Acceptance of Equity Shares between categories

Source of Funds for the Buyback

Assuming full acceptance, the funds that would be deployed by the Company for the purposes of the Buyback, would be Rs. 47,45,00,000 (Rupees Forty Seven Crore Forty Five Lakh Only) excluding any expenses incurred or to be incurred for the buy-back like filing fee payable to SEBI, transaction costs viz. brokerage, advisors’ fees, printing and dispatch expenses, applicable taxes such as securities transaction tax, goods and service tax, buyback tax, stamp duty and other related and incidental expenses.

The fund for the Buyback will be sourced out of the free reserves of the Company (including securities premium account) or such other source as may be permitted by the Buyback Regulations or the Companies Act.

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


Smartlink Holdings Limited – Manager to the Buyback

ICICI Securities Limited
Address: ICICI Centre, H.T. Parekh Marg,
Churchgate, Mumbai – 400 020.
Phone : +91 22 2288 2460
Fax: +91 22 2282 6580
Contact Person: Arjun A Mehrotra/ Sameer Purohit
Email: [email protected]
SEBI Registration Number: INM000011179
Validity period: Permanent
CIN: L67120MH1995PLC086241

Smartlink Holdings Limited – Registrar to the Buyback

Karvy Fintech Private Limited
Address: Karvy Selenium Tower B, Plot No 31 & 32,
Gachibowli, Financial District,
Nanakramguda, Serilingampally, Hyderabad – 500 032.
Tel: 040 67162222
Fax: 040 23431551
Email: [email protected]
Contact Person: Mr. M. Murali Krishna
SEBI Registration Number: INR000000221
Validity Period: Permanent

Smartlink Holdings Limited Contact Details

Company Contact Details
SMARTLINK HOLDINGS LIMITED
(Formerly known as Smartlink Network Systems Limited)
CIN: L67100GA1993PLC001341
Registered Office: L-7, Verna Industrial Estate, Verna, Salcete,
Goa, 403722 Tel.: (0832) 288 5400 Fax: (0832) 278 3395
E-mail: [email protected]
Website: www.smartlinkholdings.com

 


Smartlink Holdings Limited Buyback News

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

News 2 – Smartlink Holdings Ltd – Public Announcement


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