Sterlite Technologies Buyback Review, Offer Details, Price, Dates, Size & more

In 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.

Sterlite Technologies Limited Buyback Details

Buyback TypeOpen Market
Opening DateApril 7, 2020
Closing DateOctober 6, 2020
Buyback Offer AmountRs.145 Crores
Buyback No. of Shares96,66,666
Face ValueRs.2
Date of Buyback ApprovalMarch 24, 2020
Date of Public AnnouncementMarch 27, 2020
Buy Back PriceRs.150
Buy Back Premium124.22%
Date of Board MeetingMarch 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 RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200150300001722026.95%
40%400150600003444053.90%
60%600150900005166080.85%
80%80015012000068880107.79%
100%100015015000086100134.74%

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 Technologies Buyback 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.


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]

ParticularsFor the period ended Dec 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income3,744.244,897.472,930.602,423.92
Total Expenses (excluding Interest, depreciation)2,909.383,823.112,290.541,979.49
Finance Cost152.2395.25102.68116.99
Depreciation and Amortization173.11167.79170.14145.17
Profit before tax458.81811.32367.24182.27
Provision for tax
(including Deferred Tax)
96.41276.09112.5626.34
Profit /(Loss) after tax362.40535.23254.68155.93
Equity Share Capital80.7880.5180.2079.66
Reserves1,507.70989.79791.51
Networth1,588.211,069.99871.17
Total Debt1,528.781,163.221,067.69

Sterlite Technologies Limited Buyback Dates

Date of Board Meeting approving the BuybackMarch 24, 2020
Date of publication of Public Announcement for BuybackMarch 27, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders[●]
Buyback Opening dateApril 7, 2020
Buyback Closing dateOctober 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.


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-backPost 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.


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


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