In this article, we will discuss about Star Cement Limited Buyback offer, buyback price, buyback size, Star Cement Buyback record date, company financial, buyback necessity and its impact on company.
Star Cement Limited Buyback Details
|Buyback Type||Tender Offer|
|Opening Date||October 22, 2019|
|Closing Date||November 05, 2019|
|Buyback Offer Amount||Rs. 102,00,00,000/-|
|Buyback No. of Shares||68,00,000|
|Face Value||Rs. 1|
|Date of Buyback Approval||April 16, 2019|
|Date of Public Announcement||June 25, 2019|
|Buy Back Price||Rs. 150/-|
|Buy Back Premium||1.62%|
|Date of Board Meeting||June 21, 2019|
Star Cement Buyback Opening and Closing Date
The starting and closing date of this buyback is from October 22, 2019 to November 05, 2019.
Star Cement Buyback Cash Offer
The Cash Offer to Buy-back up to 68,00,000 fully paid-up equity shares of the Company of face value of Rs. 1 each, representing 1.62% of the total number of equity shares.
Star Cement Buyback Record Date
The decided record date is July 05, 2019.
Star Cement Buyback Price
At a price of Rs.150 per Equity Share.
Star Cement Buyback Size
At a buyback price of Rs.150/- payable in cash for an aggregate consideration not exceeding Rs.102,00,00,000.
Star Cement 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.
Star Cement 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%|
Profit is calculated from 17th Oct 2019 share price i.e. Rs.94 per share of Star Cement Limited.
According to the above table, if a shareowner applies for 1000 shares of Star Cement limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.150 per share & receive Rs.11200 as profit amount & 11.91 % 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.150 & receive a profit of Rs.33600 @ 35.74 % profit percentage.
Star Cement Limited Buyback Overview
Star Cement Limited (“Star Cement” or the “Company”) an Indian company incorporated on December 29, 1945, is a leading global information technology, consulting and business process services company. The Company has over 1,70,000 dedicated employees serving clients across six continents.
The name of the Company was changed from Western India Vegetable Products Limited to Star Cement Products Limited on June 7, 1977, and subsequently to Star Cement Limited on April 28, 1984. The Company has its registered office situated at Doddakannelli, Sarjapur Road, Bengaluru 560 035, India.
Company shifted its registered office from the State of Maharashtra to the State of Karnataka on July 10, 1996. The Equity Shares of the Company were listed in the year 1995 on the NSE (Code: Star Cement) and an application for listing of equity shares was filed with BSE in the year 1946-47 (Code: 507685). The ADRs of the Company were listed on NYSE (Code: WIT) in the year 2000. The ISIN Number of the Company is INE075A01022.
Company Finances – Star Cement Limited
The salient Financial Information of the Company as extracted from the standalone Audited financials of the
Company is given below:
[In Rs. Lakhs]
|Particulars||12 Months period ended March 31|
|Total Expenses (excluding finance cost, depreciation & amortization)||1,45,452.15||1,25,975.29||1,25,949.18|
|Depreciation and amortization expenses||4,648.77||5,745.45||4,035.36|
|Profit before tax||28,036.77||22,783.95||8,609.07|
|Provision for tax|
(including Deferred Tax)
|Profit /(Loss) after tax||25,589.14||21,077.65||8,002.44|
|Equity Share Capital||4,192.29||4,192.29||4,192.14|
|Total Debt (Excluding working capital loans)||15,715.87||42,785.65||62,183.89|
Star Cement Limited Buyback Dates
|Date of Board Meeting approving the Buyback||June 21, 2019|
|Date of publication of Public Announcement for Buyback||June 25, 2019|
|Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders||July 05, 2019|
|Buyback Opening date||October 22, 2019|
|Buyback Closing date||November 05, 2019|
|Last Date of verification of Tender Forms by the Registrar||November 07, 2019|
|Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar||November 14, 2019|
|*Last date of Settlement of Bids on the BSE Limited||November 15, 2019|
|Last date of return of unaccepted Equity Shares by BSE Limited||November 15, 2019|
|Last date of Extinguishment of Equity Shares||November 22, 2019|
Details of Public Announcement
The Public Announcement dated June 21, 2019 was published on June 25, 2019 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of passing of the Resolution in the meeting of Board of Directors for the Buyback, on June 21, 2019.
|Business Standard||English||All editions|
|Meghalaya Times||English||Shillong edition|
|Business Standard||Hindi||All editions|
|U Nongsain Hima||Khasi||Shillong edition|
Necessity of Star Cement Limited Buyback
The Buyback is being undertaken for the following reasons:
- The Buyback will help the Company distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing the overall return to Equity Shareholders;
- Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, involves a reservation of up to 15% of the Buyback Size for Small Shareholders. The Company believes that this reservation of up to 15% for Small Shareholders would benefit a large number of the Company’s public shareholders, who would be classified as Small Shareholders for the purposes of the Buyback;
- The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company; and
- The Buyback gives the Eligible Shareholders the choice to either participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.
Impact of Star Cement Limited 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 there is full response to the buyback, the funds deployed by the Buyback would be Rs. 102,00,00,000/- .
The buyback will not in any manner impair the ability of the Company in meeting to pursue growth
opportunities or meet its cash requirements for business operations.
Salient Financial Parameters consequent to the Buyback based on the latest standalone and consolidated audited results as on March 31, 2019 are as under:
|Parameters (based on audited standalone financial statements for year ended March 31, 2018)||Pre Buy-back||Post Buy-back|
(Assuming Full Acceptance)
|Net worth (Rs in Lakhs)||1,04,487.34||94,287.34|
|Return on Net worth (%)||24.49%||27.14%|
|Earnings Per Share (Rs)||6.10||6.20|
|Book Value per Share (Rs)||24.92||22.86|
|P/E as per the latest audited standalone financial statements||NSE-0.17|
|Total Debt / Equity Ratio||0.15||0.17|
Basis of Calculating Star Cement Buyback Price
The Equity Shares are proposed to be bought back through Tender Offer at a price of Rs. 150/- per Equity Share.
Buyback Price represents a premium of 37.21% over the volume weighted average market price of the Equity Shares on the NSE For 3 months preceding the date of the intimation of the Board Meeting i.e. June 18, 2019 which was Rs. 109.32 and 20.39% over the volume weighted average market price of the Equity Shares on the NSE for 2 weeks preceding the date of the intimation of the Board Meeting i.e. June 18, 2019 which was Rs. 124.60.
The closing market price of the Equity Shares as on the date of the intimation of the Board Meeting i.e. June 18, 2019, was Rs. 118.15 on NSE and Rs. 117.80 on BSE.
More on Star Cement Buyback Price Calculation
The Return of adjusted net worth of the Company Pre- Buyback as on March 31, 2019 is 24.49% on a
standalone basis, which will increase to 27.14% post Buyback assuming full acceptance of the Buyback,
as calculated at 9.15 above.
The basic adjusted earnings per share of the Company pre buyback as on March 31, 2019 is Rs. 6.10 on a standalone basis, which will increase to Rs. 6.20, post buyback assuming full acceptance.
Source of Funds for the Buyback
Assuming full acceptances, the funds that will be employed by the Company for the purpose of Buyback of 68,00,000 equity shares at a price of Rs. 150/-per equity share would be Rs. 102,00,00,000/-.
The funds for the Buyback will be sourced from cash balances available with the Company and/or liquidation of financial instruments held by the Company. These funds have been generated through internal accruals. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Accordingly, borrowed funds will not be used for the Buyback.
Star Cement Limited – Manager to the Buyback
|NARNOLIA FINANCIAL ADVISORS LIMITED|
201, 2ND Floor, Marble Arch
236B, A.J.C Bose Road, Kolkata – 700020
Tel No: (033) 4050 1500
Fax: (033) 4050 1549
Contact Person: Mr. Manav Goenka
SEBI REGN NO: INM000010791
Star Cement Limited – Registrar to the Buyback
MAHESHWARI DATAMATICS PRIVATE LIMITED
23 R. N. Mukherjee Road, 5th Floor
Tel No: (033) 22482248, 22435029
Fax: (033) 22484787
Contact Person: Mr. S. Rajagopal
SEBI REGN NO: INR0000000353
Star Cement Limited Contact Details
|Company Contact Details|
|STAR CEMENT LIMITED|
Regd. Office: Vill: Lumshnong, P.O.: Khaliehriat, Dist.: East Jaintia Hills, Meghalaya – 793210
Corporate Office: Satyam Towers, Unit No. 9B, 1st Floor, 3 Alipore Road, Kolkata – 700027
Phone No: (033) 24015556 Fax No: (033) 24015556
Website: www.starcement.co.in; E-mail: email@example.com:Company Secretary and Compliance Officer :Mr. Debabrata Thakurta
Star Cement Limited Buyback News
News 2 – Star Cement Ltd – Public Announcement
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