Smartlink Holdings Buyback Review, Offer Details, Price, Dates, Size & more
In this article, we will discuss Smartlink Holdings Limited Buyback offer, buyback price, buyback size, Smartlink Holdings Buyback record date, company financial, buyback necessity, and its impact on the company.
Smartlink Holdings Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | April 30, 2021 |
| Closing Date | May 14, 2021 |
| Buyback Offer Amount | Rs. 31,58,75,000/- |
| Buyback No. of Shares | 33,25,000 |
| Face Value | Rs. 2/- |
| Date of Buyback Approval | December 4, 2020 |
| Date of Public Announcement | February 12, 2021 |
| Buy Back Price | Rs. 95/- |
| Buy Back Premium | 19.65% |
| Date of Board Meeting | December 4, 2020 |
Smartlink Holdings Buyback Opening and Closing Date
The starting and closing date of this buyback are from April 30, 2021, to May 14, 2021.
Smartlink Holdings Buyback Cash Offer
The Cash Offer to Buy-back up to 33,25,000 fully paid-up equity shares of the Company of the face value of Rs. 2 each, representing 25% of the total number of equity shares in the total paid-up equity share capital of the company
Smartlink Holdings Buyback Record Date
The decided record date is March 1, 2021.
Smartlink Holdings Buyback Price
At a price of Rs.95 per Equity Share.
Smartlink Holdings Buyback Size
At a buyback price of Rs.95/- payable in cash for an aggregate consideration not exceeding Rs. 31,58,75,000/-.
Smartlink Holdings Limited 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.
Smartlink Holdings Limited 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 | 95 | 19000 | 2000 | 2.35% |
| 40% | 400 | 95 | 38000 | 4000 | 4.71% |
| 60% | 600 | 95 | 57000 | 6000 | 7.06% |
| 80% | 800 | 95 | 76000 | 8000 | 9.41% |
| 100% | 1000 | 95 | 95000 | 10000 | 11.76% |
Profit is calculated from Apr 28, 2021 share price i.e. Rs.85 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.95 per share & receive Rs.2000 as profit amount & 2.35% 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.95 & receive a profit of Rs.6000@ 7.06% profit percentage.
Smartlink Holdings Limited Buyback Overview
The Company is in the business of investment of funds in mutual funds and other investments and investments in its subsidiary companies. The company has received the certificate of registration to carry on the business of non – banking financial institutions without accepting public deposits from the 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 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 a range of products for various communication needs including Switching, Broadband Routing, Wireless LAN, and Surveillance
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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 March 31, 2020, March 31, 2019, and March 31, 2018 and the unaudited standalone limited review financial results for the nine months period ended December 31, 2020 are as under:
[In Rs.]
| Particulars | 12 Months period ended March 31 (Audited) | |||
| December 31, 2020 | 2020 | 2019 | 2018 | |
| Total Income | 139,878,959 | 15,19,70,999 | 207,507,720 | 209,666,151 |
| Total Expenses | 46,518,968 | 22,77,30,025 | 445,108,619 | 51,846,880 |
| Interest | 2,196,602 | 39,26,182 | 1,871,815 | 653,562 |
| Depreciation and amortization expenses | 11,016,470 | 1,42,85,075 | 12,279,322 | 12,786,031 |
| Profit before tax | 80,146,919 | (13,64,48,265) | (251,752,036) | 144,379,678 |
| Provision for tax (including Deferred Tax) | 20,556,822 | (50,31,744) | 31,571,228 | 34,360,043 |
| Profit /(Loss) after tax | 59,590,097 | (13,14,16,521) | (283,323,264) | 110,019,635 |
| Equity Share Capital | 2,66,00,000 | 2,66,00,000 | 33,900,000 | 45,100,000 |
| Networth | 1,899,675,055 | 1,840,084,958 | 2,548,452,431 | 3,414,464,649 |
| Total Debt (Excluding working capital loans) | 19,817,462 | 3,16,73,310 | 140,20,562 | – |
Smartlink Holdings Limited Buyback Dates
| Date of Board Meeting approving the Buyback | December 4, 2020 |
| Date of declaration of results of the postal ballot for special resolution by the Equity Shareholders of the Company, approving the Buyback | February 11, 2021 |
| Date of publication of Public Announcement for Buyback | February 15, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | March 1, 2021 |
| Buyback Opening date | April 30, 2021 |
| Buyback Closing date | May 14, 2021 |
| Last date of receipt of completed Tender Form and other specified documents including physical certificates (if and as applicable) by the Registrar to the Buyback | May 17, 2021 |
| Last Date of verification of Tender Forms by the Registrar | May 19, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | May 19, 2021 |
| Last date of Settlement of Bids on the BSE Limited | May 25, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | May 25, 2021 |
| Last date of Extinguishment of Equity Shares | June 1, 2021 |
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement for the Buyback of Equity Shares published on February 15, 2021, in the following newspapers within two working days from the date of declaration of results of the postal ballot for a special resolution.
| Publication | Language | Edition |
| Financial Express | English | All editions |
| Jansatta | Hindi | All editions |
| Pudhari | Marathi | Goa edition |
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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) 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 a 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 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, 2020, are as under:
| Parameters (based on audited standalone financial statements for the year ended March 31, 2020) | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in cr) | 18,400.85 | 15242.1 |
| Return on Net worth (%) | (7.14) | (8.62) |
| Earnings Per Share (Rs) | (8.41) | (13.17) |
| Book Value per Share (Rs) | 141.09 | 188.12 |
| P/E as per the latest audited standalone financial statements BSE | (7.18) | (4.58) |
| Total Debt / Equity Ratio | 0.017:1 | 0.02:1 |
Basis of Calculating Smartlink Holdings Buyback Price
The Equity Shares of the Company are proposed to be bought back at a price of INR 95/- per Equity Share.
The Buyback Offer Price represents:
(a) a premium of 31.78% and 30.56% over the volume-weighted average market price of the Equity Shares on BSE and NSE, respectively, during the three months, preceding December 1, 2020, being the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback (“Intimation Date”).
(b) a premium of 29.45% and 29.48% over the volume-weighted average market price of the Equity Shares on BSE and NSE, respectively, for two weeks, preceding the Intimation Date.
(c) a premium of 29.87% and 29.60% over the closing price of the Equity Shares on NSE and BSE, respectively as on the Intimation Date.
(d) a premium of 30.94% and 29.96% over the closing price of the Equity Shares on NSE and BSE, respectively as on November 27, 2020, being the last trading day preceding the Intimation Date.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback of up to 33,25,000 Equity Shares at a price of INR 95/- per Equity Share would be an aggregate maximum amount of INR 31,58,75,000/- excluding the Transaction Costs.
The Buyback would be financed out of the free reserves and/ or securities premium account and/or such other sources or by such mechanisms, as may be permitted by applicable laws.
The Company shall transfer from its free reserves or securities premium account and/ or such 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. 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 ICICI Centre, H.T. Parekh Marg Churchgate, Mumbai – 400 020 Tel. No.: + 91 22 2288 2460 Fax No.: +91 22 2282 6580 Contact Person: Mr. Sameer Purohit / Mr. Vaibhav Saboo Email: smartlinksbuyback@icicisecurities.com Website: www.icicisecurities.com SEBI Registration No.: INM000011179 Validity Period: Permanent CIN: L67120MH1995PLC086241 |
Smartlink Holdings Limited – Registrar to the Buyback
KFin Technologies Private Limited Selenium Tower B, Plot No 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad TG – 500 032 Tel No.: +91 40 6716 2222 Toll-free No.: 18003454001 Fax No.: +91 40 2343 1551 Contact Person: Mr. M. Murali Krishna Email: smartlink.buyback2021@kfintech.com Investor Grievance Id: einward.ris@kfintech.com Website: www.kfintech.com SEBI Registration No.: INR000000221 Validity Period: Permanent CIN: U72400TG2017PTC117649 |
Smartlink Holdings Limited Contact Details
| Company Contact Details |
| SMARTLINK HOLDINGS LIMITED CIN: L67100GA1993PLC001341 Registered Office: L-7, Verna Industrial Estate, Verna, Salcete, Goa – 403 722 Tel. No.: (0832) 288 5400 | Fax. No.: (0832) 278 3395 Contact Person: Ms. Urjita Damle, Company Secretary and Compliance Officer E-mail: Company.Secretary@smartlinkholdings.com | Website: www.smartlinkholdings.com |
Smartlink Holdings Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Smartlink Holdings Ltd – Public Announcement
FAQs of Smartlink Holdings Buyback
What is the Smartlink Holdings Buyback Period?
Smartlink Holdings 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 Smartlink Holdings 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 Smartlink Holdings Buyback Offer?
Smartlink Holdings 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 33,25,000 Fully paid up Equity shares, adhering to the buyback price.
When Smartlink Holdings Buyback offer will start?
As per the released schedule, the Smartlink Holdings Buyback offer will start on April 30, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Smartlink Holdings Buyback at all times, we ensure you have access to the right data.
When is the closing date of Smartlink Holdings Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Smartlink Holdings Buyback. The buyback would close on May 14, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Smartlink Holdings Buyback?
The amount at which the shares are taken back by the company is referred to as Smartlink Holdings Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.95, the price paid to each eligible shareholder.
What is the record date for Smartlink Holdings Buyback offer?
The record date of Smartlink Holdings Buyback is March 1, 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 Smartlink Holdings Buyback?
Smartlink Holdings Buyback Size is Rs.31,58,75,000 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 Smartlink Holdings Buyback?
The objective of the Smartlink Holdings 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 to Smartlink Holdings Buyback offer?
The designated registrar of Smartlink Holdings Buyback is KFin Technologies Private 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 Smartlink Holdings Buyback offer?
The manager of the Smartlink Holdings Buyback is ICICI Securities Limited. The manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Smartlink Holdings’ 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 Smartlink Holdings 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 Smartlink Holdings Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Smartlink Holdings Buyback Dates.
What can be the Impact of Smartlink Holdings 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. The 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 Smartlink Holdings 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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