Star Cement Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, we will discuss Star Cement Buyback offer, buyback price, buyback size, Star Cement Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – Star Cement Share Price
Star Cement Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | September 22, 2021 |
| Closing Date | October 05, 2021 |
| Buyback Offer Amount | Rs. 123,72,87,000/- |
| Buyback No. of Shares | 82,48,580 |
| Face Value | Rs. 1 |
| Date of Buyback Approval | August 13, 2021 |
| Date of Public Announcement | August 17, 2021 |
| Buy Back Price | Rs. 150/- |
| Buy Back Premium | 2% |
| Date of Board Meeting | August 13, 2021 |
Star Cement Buyback Opening and Closing Date
The starting and closing date of this buyback are from September 22, 2021, to October 05, 2021.
Star Cement Buyback Cash Offer
The Cash Offer to Buy-back up to 82,48,580 fully paid-up equity shares of the Company of the face value of Rs. 1 each, representing 2% of the total number of equity shares.
Star Cement Buyback Record Date
The decided record date is August 26, 2021.
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.123,72,87,000.
Star Cement 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.
Star Cement 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 | 150 | 30000 | 8600 | 8.04% |
| 40% | 400 | 150 | 60000 | 17200 | 16.07% |
| 60% | 600 | 150 | 90000 | 25800 | 24.11% |
| 80% | 800 | 150 | 120000 | 34400 | 32.15% |
| 100% | 1000 | 150 | 150000 | 43000 | 40.19% |
Profit is calculated from 30th August 2021 share price i.e. Rs.107 per share of Star Cement.
According to the above table, if a shareowner applies for 1000 shares of Star Cement & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.150 per share & receive Rs.8600 as profit amount & 8.04 % 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.25800 @ 24.11 % profit percentage.
Star Cement Buyback Overview
Star Cement Limited was incorporated on November 2, 2001, under the Companies Act, 1956 as a public limited company under the name and style of ‘Cements Manufacturing Company Limited’, and the Company is validly existing under the Companies Act, 2013.
The registration no. assigned to the Company was 006663. The certificate of commencement of business was issued to the Company on September 19, 2002. The name of the Company was changed to ‘Cement Manufacturing Company Limited’ vide fresh Certificate of Incorporation dated November 10, 2004, issued by the Registrar of Companies, Assam, Tripura, Manipur, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram.
The name of the Company has been further changed from Cement ManufacturingCompany Limited to ‘Star Cement Limited’ and a fresh Certificate of Incorporation dated June 21, 2016, was issued by the Registrar of Companies, Assam, Tripura, Manipur, Nagaland, Meghalaya, Arunachal Pradesh, and Mizoram. The Corporate Identification Number allotted to the Company was U26942ML2001PLC006663.
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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 (Audited) |
||
| 2021 | 2020 | 2019 | |
| Total Income | 1,68,516.16 | 1,80,133.57 | 1,73,488.92 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 1,48,330.68 | 1,55,033.57 | 1,45,452.15 |
| Interest | – | – | – |
| Depreciation and amortization expenses | 4,773.29 | 4,331.89 | 4,648.77 |
| Profit before tax | 17,254.12 | 25,100.00 | 28,036.77 |
| Provision for tax (including Deferred Tax) |
(1,419.46) | (1,043.58) | (2,740.11) |
| Profit /(Loss) after tax | 15,727.21 | 21,870.69 | 25,589.14 |
| Equity Share Capital | 4,124.29 | 4,124.29 | *4,124.29 |
| Reserves & surplus | 1,22,720.90 | 1,06,993.69 | 1,00,295.03 |
| Networth | 1,26,845.19 | 1,11,117.98 | 1,04,487.32 |
| Total Debt (Excluding working capital loans) | 12,220.34 | 14,826.84 | 15,715.87 |
Star Cement Buyback Dates
| Date of Board Meeting approving the Buyback | August 13, 2021 |
| Date of publication of Public Announcement for Buyback | August 17, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | August 26, 2021 |
| Buyback Opening date | September 22, 2021 |
| Buyback Closing date | October 05, 2021 |
| Last Date of verification of Tender Forms by the Registrar | October 12, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | October 13, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | October 14, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | October 14, 2021 |
| Last date of Extinguishment of Equity Shares | October 21, 2021 |
Details of Public Announcement
The Public Announcement dated August 13, 2021, was published on August 17, 2021, 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 the Board of Directors for the Buyback, on August 13, 2021.
| Publication | Language | Edition |
| Financial Express | English | All India editions |
| Meghalaya Times | English | Shillong edition |
| Jansatta | Hindi | All India editions |
| U Nongsain Hima | Khasi | Shillong edition |
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Necessity of Star Cement Buyback
The Buyback is being undertaken for the following reasons:
(I) The Buyback will help the Company to distribute surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
(ii). The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve the allocation of 15% of the outlay to small shareholders. The Company believes that this reservation of 15% for small shareholders would benefit public shareholders, who would get classified as “Small Shareholder”;
(iii). 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;
(iv). 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;
(v). The Buyback will help in optimizing the capital structure.
Impact of Star Cement 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 a full response to the buyback, the funds deployed by the Buyback would be Rs. 123,72,87,000/- .
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 of March 31, 2021, are as under:
| Parameters (based on audited standalone financial statements for the year ended March 31, 2018) | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Lakhs) | 1,26,845.19 | 1,11,609.15 |
| Return on Net worth (%) | 12.40 | 14.10 |
| Earnings Per Share (Rs) | 3.81 | 3.89 |
| Book Value per Share (Rs) | 30.76 | 27.61 |
| P/E as per the latest audited standalone financial statements | NSE – 30.43 BSE – 30.45 |
NSE – 29.82 BSE – 29.84 |
| Total Debt / Equity Ratio | 0.10 | 0.11 |
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.
The Buyback Price represents a premium of 36.48% over the volume-weighted average market price of the Equity Shares on the NSE (the Stock Exchange where the maximum volume of trading in the Equity Shares is recorded) for 3 (three) months preceding the date of the intimation of the Board Meeting i.e. August 10, 2021, which was Rs. 109.91 and 35.14% over the volume-weighted average market price of the Equity Shares on the NSE for 2 (two) weeks preceding the date of the intimation of the Board Meeting i.e. August 10, 2021, which was Rs. 111.00.
The closing market price of the Equity 34 Shares as of the date of the intimation of the Board Meeting i.e. August 10, 2021, was Rs. 110.15 on NSE and Rs. 110.00 on BSE.
More on Star Cement Buyback Price Calculation
The Buyback Price is 4.88 and 3.04 times the book value per Equity Share of the Company as of March 31, 2021, based on standalone and consolidated financial statements respectively. The basic adjusted earnings per share of the Company pre-buyback as of March 31, 2021, is Rs. 3.81 on a standalone basis, which will increase to Rs. 3.89, post buyback assuming full acceptance.
The consolidated earnings per share as of March 31, 2021, shall increase from Rs. 4.54 pre-buyback to Rs. 4.63 post buyback.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that will be employed by the Company for the purpose of Buyback of 82,48,580 equity shares at a price of Rs. 150/-per equity share would be Rs. 123,72,87,000/- (Rupees One Hundred Twenty Three Crores Seventy Two Lakhs and Eighty-Seven Thousand only).
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. However, if required, the Company may borrow funds in the ordinary course of its business.
Star Cement – Manager to the Buyback
| NARNOLIA FINANCIAL SERVICES LIMITED (Formerly Narnolia Financial Advisors Limited) 201, 2ND Floor, Marble Arch 236B, A.J.C Bose Road, Kolkata – 700020 Tel No: (033) 4050 1508 Fax: (033) 4050 1549 Email: mgoenka@narnolia.com Website: www.narnolia.com Contact Person: Mr. Manav Goenka SEBI REGN NO: INM000010791 |
Star Cement – Registrar to the Buyback
|
MAHESHWARI DATAMATICS PRIVATE LIMITED
23 R. N. Mukherjee Road, 5th Floor Kolkata -700001 Tel No: (033) 22482248, 22435029 Fax: (033) 22484787 Email: mdpldc@yahoo.com Website: http://www.mdpl.in Contact Person: Mr. S. Rajagopal SEBI REGN NO: INR00000353 |
Star Cement Contact Details
| Company Contact Details |
| STAR CEMENT LIMITED CIN: L26942ML2001PLC006663 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: investors@starcement.co.in:Company Secretary and Compliance Officer :Mr. Debabrata Thakurta |
Star Cement Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Star Cement Ltd – Public Announcement
FAQs of Star Cement Buyback
What is the Star Cement Buyback Period?
Star Cement 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. August 13, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. October 14, 2021.
What type of buyback is Star Cement 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 Star Cement Buyback Offer?
Star Cement 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 82,48,580 Fully paid up Equity shares, adhering to the buyback price.
When Star Cement Buyback offer will start?
As per the released schedule, the Star Cement Buyback offer will start on September 22, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Star Cement Buyback at all times, we ensure you have access to the right data.
When is the closing date of Star Cement Buyback?
For ease of access to the dates and related aspects, we have segregated the closing date of Star Cement Buyback. The buyback would stay open from September 22, 2021, and would close on October 05, 2021. The closing date is the last day on which the Buyback shall be open for the shareholders.
What is the offer price for Star Cement Buyback?
The amount at which the shares are taken back by the company is referred to as the Star Cement Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.150, the price paid to each eligible shareholder.
What is the record date for Star Cement Buyback offer?
The record date of Star Cement Buyback is August 26, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, a letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Star Cement Buyback?
Star Cement Buyback Size is Rs. 123,72,87,000 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 Star Cement Buyback?
The objective of the Star Cement Buyback is to enhance the total return made by equity shareholders. The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Star Cement Buyback offer?
The designated registrar of Star Cement Buyback is MAHESHWARI DATAMATICS 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 Star Cement Buyback offer?
Manager to the Star Cement Buyback is NARNOLIA FINANCIAL ADVISORS LIMITED. The manager basically ensures that the company following up buyback strictly adheres to and is in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Star Cement buyback acceptance ratio?
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 Star Cement 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 Star Cement Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Star Cement Buyback Dates.
What can be the Impact of Star Cement 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. 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.
Where to find complete details on Star Cement 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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