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 Type | Tender Offer |
| Opening Date | NA |
| Closing Date | NA |
| 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 NA to NA.
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 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 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 Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 95 | 19000 | 650 | 0.71% |
| 40% | 400 | 95 | 38000 | 1300 | 1.42% |
| 60% | 600 | 95 | 57000 | 1950 | 2.13% |
| 80% | 800 | 95 | 76000 | 2600 | 2.83% |
| 100% | 1000 | 95 | 95000 | 3250 | 3.54% |
Profit is calculated from 23 Feb 2021 share price i.e. Rs.91.75 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.650 as profit amount & 0.71% 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.1950 @ 2.13% 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. 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 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 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 | – |
| 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 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 special resolution.
| Publication | Language | Edition |
| Financial Express | English | All editions |
| Jansatta | Hindi | All editions |
| Pudhari | Marathi | Goa 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, 2020 are as under:
| Parameters (based on audited standalone financial statements for 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) 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) 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) 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) 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.
Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilised 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 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: smarlinks.buyback@icicisecurities.com 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: smartlinkbuyback@karvy.com 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: 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
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