Sterlite Technologies Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Aug 30, 2023In this article, they will discuss about Sterlite Technologies Limited Buyback offer, buyback price, buyback size, Sterlite Technologies Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time price of this Buyback, Click on this link – Sterlite Technologies Share Price
Sterlite Technologies Limited Buyback Details
| Buyback Type | Open Market |
| Opening Date | April 7, 2020 |
| Closing Date | October 6, 2020 |
| Buyback Offer Amount | Rs.145 Crores |
| Buyback No. of Shares | 96,66,666 |
| Face Value | Rs.2 |
| Date of Buyback Approval | March 24, 2020 |
| Date of Public Announcement | March 27, 2020 |
| Buy Back Price | Rs.150 |
| Buy Back Premium | 124.22% |
| Date of Board Meeting | March 24, 2020 |
Sterlite Technologies Buyback Opening and Closing Date
The starting and closing date of this buyback is from April 7, 2020 to October 6, 2020.
Sterlite Technologies Buyback Cash Offer
Cash Offer to Buy-back up to 96,66,666 fully paid-up equity shares of the Company of face value of Rs.2 each, being 9.95% and 9.32% of the total paid-up share capital and free reserves.
Sterlite Technologies Buyback Record Date
The decided record date is [●].
Sterlite Technologies Buyback Price
At a price of Rs.150 per Equity Share.
Sterlite Technologies Buyback Size
At a buyback price of Rs.150 payable in cash for an aggregate maximum amount of Rs.145 Crores.
Sterlite Technologies 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.
Sterlite Technologies 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 | 150 | 30000 | 17220 | 26.95% |
| 40% | 400 | 150 | 60000 | 34440 | 53.90% |
| 60% | 600 | 150 | 90000 | 51660 | 80.85% |
| 80% | 800 | 150 | 120000 | 68880 | 107.79% |
| 100% | 1000 | 150 | 150000 | 86100 | 134.74% |
Profit is calculated from March 16, 2020 share price i.e. Rs.63.90 per share of Sterlite Technologies Limited.
According to the above table, if a shareowner applies for 1000 shares of Sterlite Technologies limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.150 per share & receive Rs.17220 as profit amount & 26.95% 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.51660 @ 80.85% profit percentage.
Sterlite Technologies Limited Buyback Overview
Sterlite was incorporated on March 24, 2000. The company CIN is L31300MH2000PLC269261. The Company is engaged in the business of designing and deploying high-capacity converged fibre and wireless networks.
STL partners with global telecom companies, cloud companies, citizen networks and large enterprises to design, build and manage such cloud-native software-defined networks and provide end-to-end data network solutions.
STL has a strong global presence with next-gen optical preform, fibre and cable manufacturing facilities in India, Italy, China and Brazil, along with two software-development centres and one Centre of Excellence across India and one data centre design facility in the UK. The Equity Shares of Company are presently listed on BSE and NSE.
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Company Finances – Sterlite Technologies Limited
The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the 9 months ended December 31, 2019 are provided below:
[In Rs. crores]
| Particulars | For the period ended Dec 2019 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2019 | 2018 | 2017 | ||
| Total Income | 3,744.24 | 4,897.47 | 2,930.60 | 2,423.92 |
| Total Expenses (excluding Interest, depreciation) | 2,909.38 | 3,823.11 | 2,290.54 | 1,979.49 |
| Finance Cost | 152.23 | 95.25 | 102.68 | 116.99 |
| Depreciation and Amortization | 173.11 | 167.79 | 170.14 | 145.17 |
| Profit before tax | 458.81 | 811.32 | 367.24 | 182.27 |
| Provision for tax (including Deferred Tax) |
96.41 | 276.09 | 112.56 | 26.34 |
| Profit /(Loss) after tax | 362.40 | 535.23 | 254.68 | 155.93 |
| Equity Share Capital | 80.78 | 80.51 | 80.20 | 79.66 |
| Reserves | – | 1,507.70 | 989.79 | 791.51 |
| Networth | – | 1,588.21 | 1,069.99 | 871.17 |
| Total Debt | – | 1,528.78 | 1,163.22 | 1,067.69 |
Sterlite Technologies Limited Buyback Dates
| Date of Board Meeting approving the Buyback | March 24, 2020 |
| Date of publication of Public Announcement for Buyback | March 27, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | [●] |
| Buyback Opening date | April 7, 2020 |
| Buyback Closing date | October 6, 2020 |
| 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
This public announcement (the “Public Announcement”) is made in relation to the buy-back of equity shares (as defined below) by Sterlite Technologies Limited (the “Company”) from BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”) (together, the “Stock Exchanges”), pursuant to the provisions of Regulation 16(iv)(a) read with Regulation 16(iv)(b) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the “SEBI Buy-Back Regulations”), and contains the disclosures as specified in the applicable provisions of Schedule IV to the SEBI Buy-Back Regulations.
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Necessity of Sterlite Technologies Limited Buyback
Company has proposed to Buy-back its own Equity Shares for an aggregate amount not exceeding the Maximum Buy-back Size being 9.95% and 9.32% of the paid-up share capital and free reserves (including securities premium) based on the audited financial statements of the Company as at March 31, 2019 on standalone and consolidated basis respectively, from the open market through Stock Exchanges. The Buy-back is expected to achieve the following objectives:
(a) For seeking a fairer valuation of the Company’s stock price; and
(b) Improve key return ratios like return on net worth, return on assets etc. over a period of time
Impact of Sterlite Technologies Limited Buyback on the Company
The Buy-back is not likely to cause any material impact on the earnings of the Company, except a reduction in the investment income, which the Company could have otherwise earned on the amount distributed towards the Buy-back.
The Buy-back of Equity Shares will result in a reduction in share capital and consequently, is expected to be EPS accretive. This Company believes that the Buy-back will contribute to the overall enhancement of shareholders’ value going forward and expects to seek fairer valuation of the Company’s stock price.
Consequent to the Buy-back and based on the number of Equity Shares bought back from the shareholders excluding the promoters, the shareholding pattern of the Company would undergo a change, however public shareholding shall not fall below 25% of the total fully paid-up equity share capital of the Company.
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2019 are as under:
| Parameters (based on audited standalone financial statements for year ended March 31, 2019) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | ||
| Return on Net worth (%) | ||
| Earnings Per Share Basic (Rs) | ||
| Earnings Per Share Diluted (Rs) | ||
| Book Value per Share (Rs) | ||
| Total Debt / Equity Ratio |
Basis of Calculating Sterlite Technologies Buyback Price
The Maximum Buy-back Price of ₹150/- (Rupees One Hundred and Fifty only) per Equity Share has been arrived at after considering various factors, including average of the weekly high and low of the closing share price of the Equity Shares of the Company on the Stock Exchanges, the net worth of the Company and the potential impact of the Buy-back on the EPS of the Company. The Maximum Buy-back Price excludes the Transaction Costs.
Maximum Buy-back Price is at a premium of 124.22% over the closing prices on BSE and the NSE (i.e. ₹ 66.90 (Rupees Sixty Six and Paise Ninety only), respectively, on March18, 2020 which is one trading day prior to the date on which the notice of the Board Meeting to consider the Buy-back proposal was intimated to the BSE and the NSE.
The Maximum Buy-back Price is at a premium of 105.90% and 106.29%, compared to the average of the weekly high and low of the closing prices of the Equity Shares of the Company on the Stock Exchanges during the 2 (two) weeks preceding the date of the Board Meeting on BSE and NSE respectively.
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
The Company proposes to implement the Buy-back out of its free reserves and internal accruals. The amount required by the Company for the Buy-back (including the cost of financing the Buy-back and the Transaction Costs) will be invested from the free reserves and internal accruals of the Company.
It is proposed to Buy-back upto 9.95% and 9.32% of the paid-up share capital and free reserves (including securities premium) based on the audited financial statements of the Company as at March 31, 2019 on standalone and consolidated basis respectively, from the open market through the Stock Exchanges.
Sterlite Technologies Limited – Manager to the Buyback
| AXIS CAPITAL LIMITED 1st Floor, Axis House C-2 Wadia International Centre, P. B. Marg, Worli, Mumbai – 400 025, Maharashtra, India Tel.: +91 22 4325 2183; Fax: +91 22 4325 3000 Contact Person: Mr. Sagar Jatakiya Email: stl.buyback2020@axiscap.in; Website: www.axiscapital.co.in SEBI Registration Number: INM000012029 |
Sterlite Technologies Limited – Registrar to the Buyback
|
KFin Technologies Private Limited
(Formerly known as “Karvy Fintech Private Limited”) Address: Selenium Tower- B, Plot No 31 & 32 Gachibowli, Financial District Nanakramguda, Serilingampally, Hyderabad, Telangana – 500032. Tel:+91 40 6716 2222; Fax:+91 40 343 1551 Contact person: M Murali Krishna Email: stl.buyback@kfintech.com; Website: www.kfintech.com SEBI Registration Number: INR000000221 |
Sterlite Technologies Limited Contact Details
| Company Contact Details |
| Sterlite Technologies Limited Corporate Identification Number (CIN):L31300MH2000PLC269261, Registered Office:E1, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India. Corporate Office: Godrej Millennium, 9 Koregoan Road, Pune – 411001, Maharashtra, India Investor Service Telephone: +91 20 30514000; Website:www.stl.tech; Email: secretarial@sterlite.com; Company Secretary and Compliance Officer: Mr. Amit Deshpande |
Sterlite Technologies Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – Sterlite Technologies Ltd – Public Announcement
FAQs of Sterlite Technologies Buyback
What is the Sterlite Technologies Buyback Period?
Sterlite Technologies 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. April 7, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. October 6, 2020.
What type of buyback is Sterlite Technologies Buyback?
This company has chosen the route of Open Market to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Open Market Through Stock Exchanges.
What is the Sterlite Technologies Buyback Offer?
Sterlite Technologies Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 96,66,666 Fully paid up Equity shares, adhering to the buyback price.
When Sterlite Technologies Buyback offer will start?
As per the released schedule, the Sterlite Technologies Buyback offer will start on April 7, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Sterlite Technologies Buyback at all times, we ensure you have access to the right data.
When is the closing date of Sterlite Technologies Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Sterlite Technologies Buyback. The buyback would close on October 6, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Sterlite Technologies Buyback?
The amount at which the shares are taken back by the company is referred to as Sterlite Technologies 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 Sterlite Technologies Buyback offer?
Record date of Sterlite Technologies Buyback is NA. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Sterlite Technologies Buyback?
Sterlite Technologies Buyback Size is Rs.145 Crores 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 Sterlite Technologies Buyback?
Company has proposed to Buy-back its own Equity Shares for an aggregate amount not exceeding the Maximum Buy-back Size being 9.95% and 9.32% of the paid-up share capital and free reserves (including securities premium) based on the audited financial statements of the Company as at March 31, 2019 on standalone and consolidated basis respectively, from the open market through Stock Exchanges. The Buy-back is expected to achieve the following objectives:
Who is the Registrar to Sterlite Technologies Buyback offer?
The designated registrar of Sterlite Technologies 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 to the Sterlite Technologies Buyback offer?
Manager to the Sterlite Technologies Buyback is AXIS CAPITAL LIMITED. 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 Sterlite Technologies 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 buyback 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 Sterlite Technologies 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 Sterlite Technologies Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Sterlite Technologies Buyback Dates.
What can be the Impact of Sterlite Technologies 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 Sterlite Technologies 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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