Suprajit Engineering Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, we will discuss about Suprajit Engineering Limited Buyback offer, buyback price, buyback size, Suprajit Engineering Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – Suprajit Engineering Share Price
Suprajit Engineering Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | April 08, 2021 |
| Closing Date | April 26, 2021 |
| Buyback Offer Amount | Rs.48,00,00,000 |
| Buyback No. of Shares | 15,00,000 |
| Face Value | Rs.1 |
| Date of Buyback Approval | February 10, 2021 |
| Date of Public Announcement | February 11, 2021 |
| Buy Back Price | Rs.320 |
| Buy Back Premium | 56.86% |
| Date of Board Meeting | February 10, 2021 |
Suprajit Engineering Buyback Opening and Closing Date
The starting and closing date of this buyback is from April 08, 2021 to April 26, 2021.
Suprajit Engineering Buyback Cash Offer
Cash Offer to Buy-back up to 15,00,000 fully paid-up equity shares of the Company of face value of Rs.1 each, representing 1.07% of the issued, subscribed and paid-up Equity Shares of the Company.
Suprajit Engineering Buyback Record Date
The decided record date is February 22, 2021.
Suprajit Engineering Buyback Price
At a price of Rs.320 per Equity Share.
Suprajit Engineering Buyback Size
At a buyback price of Rs.320 payable in cash for an aggregate maximum amount of Rs.48,00,00,000.
Suprajit Engineering 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.
Suprajit Engineering 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 | 320 | 64000 | 7200 | 2.54% |
| 40% | 400 | 320 | 128000 | 14400 | 5.07% |
| 60% | 600 | 320 | 192000 | 21600 | 7.61% |
| 80% | 800 | 320 | 256000 | 28800 | 10.14% |
| 100% | 1000 | 320 | 320000 | 36000 | 12.68% |
Profit is calculated from April 01, 2021 share price i.e. Rs.284 per share of Suprajit Engineering Limited.
According to the above table, if a shareowner applies for 1000 shares of Suprajit Engineering limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.320 per share & receive Rs.7200 as profit amount & 2.54% 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.320 & receive a profit of Rs.21600 @ 7.61% profit percentage.
Suprajit Engineering Buyback Overview
Incorporated as a Private Limited Company in 1985, Suprajit Engineering Limited started manufacturing high quality liner cables to exacting Japanese standards for the automotive industry in 1987.
Currently catering to a wide spectrum of automotive and non-automotive cable requirements, Suprajit Engineering has achieved phenomenal growth and has cemented itself as India’s largest manufacturer of automotive cables. Suprajit is now listed in the Indian bourses and is amongst the top five cable manufacturers in the world
Suprajit Engineering Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Millions]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 4095. 59 | 10,962.30 | 10,891.66 | 10,107.36 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 3489.57 | 8811.13 | 8798.29 | 8148.53 |
| Finance Cost | 69.07 | 134.22 | 151.92 | 184.50 |
| Depreciation | 116.48 | 259.07 | 202.55 | 184.44 |
| Profit before tax | 420.47 | 1,757.88 | 1,738.90 | 1,589.89 |
| Profit /(Loss) after tax | 336.98 | 1,233.32 | 1,148.23 | 1,046.41 |
| Equity Share Capital | 139.87 | 139.87 | *139.87 | 139.87 |
| Reserve and Surplus | 8024.07 | 7676.62 | 6870.44 | 5920.43 |
| Networth | 8163.94 | 7816.49 | 7010.31 | 6060.30 |
| Total Debt | 1633.06 | 2016.65 | 1690.98 | 1738.34 |
Suprajit Engineering Limited Buyback Dates
| Date of Board Meeting approving the Buyback | February 10, 2021 |
| Date of publication of Public Announcement for Buyback | February 12, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | February 22, 2021 |
| Buyback Opening date | April 08, 2021 |
| Buyback Closing date | April 26, 2021 |
| Last Date of verification of Tender Forms by the Registrar | May 04, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | May 04, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | May 05, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | May 05, 2021 |
| *Last date of Extinguishment of Equity Shares | May 12, 2021 |
Details of Public Announcement
This is to say, in accordance with Regulation 7(i) of the Buyback Regulations, the Public Announcement was published on February 12, 2021 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All |
| Business Standard | Hindi | All |
| Vishvavani | Kannada | Karnataka |
Necessity of Suprajit Engineering Buyback
The Buyback is being undertaken by the Company to return surplus funds to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective and cost efficient manner. The Buyback is being undertaken for the following reasons:
a. 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;
b. The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve allocation of number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders.
c. The Buyback would help in improving financial ratios like earnings per share and return on Equity, by reducing the Equity base of the Company, leading to increase in long term value for shareholders; and
d. The Buyback gives the Eligible Shareholders the choice to either participate in the Buyback or 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 Suprajit Engineering Buyback on the Company
The Company believes the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company, except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
The Company believes 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, thereby, enhancing the overall return to the shareholders.
The Company shall not raise further capital for a period of one year or six months, as may be applicable in accordance with the Buyback Regulations or any circulars or notifications issued by SEBI in connection therewith, from the expiry of the Buyback period, except in discharge of subsisting obligations.
Further, the Company shall not issue any Equity Shares or other specified securities including by way of bonus, till the date of expiry of Buyback period in accordance with Companies Act and Buyback Regulations.
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for September 30, 2020 are as under:
| Parameters (based on audited standalone financial statements for September 30, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 7,816.49 | 7,336.49 |
| Return on Net worth (%) | 15.78 | 16.81 |
| Earnings Per Share (Rs) | 8.82 | 8.91 |
| Book Value per Share (Rs) | 55.88 | 53.02 |
| Price / Earnings Ratio (P/E)** | 28.81 | 28.50 |
| Total Debt / Equity Ratio | 0.26 | 0.27 |
Basis of Calculating Suprajit Engineering Buyback Price
The Equity Shares are proposed to be bought back at a price of Rs. 320/- per Equity Share.
The Buyback Price of Rs. 320/- per Equity Share has been arrived at after considering various factors such as including, but not limited to, the trends in the volume weighted average prices of the Equity Shares of the Company on the Stock Exchanges, the net worth of the company, price earnings ratio and impact on other financial parameters and the possible impact of buyback on the earnings per share.
The Buyback Price represents
(i) Premium of 56.86% and 78.52% over the volume weighted average market price of the Equity Shares on BSE and NSE, during the three months preceding February 05, 2021, being the date of intimation to the Stock Exchanges for the board meeting to consider the proposal of the Buyback (“Intimation Date”),
(ii) Premium of 50.94% and 49.23% over the volume weighted average market price of the Equity Shares on BSE and NSE, during the two weeks preceding the Intimation Date,
(iii) Premium of 41.75 % and 41.84% over the closing price of the Equity Share on BSE and NSE, as on the Intimation Date.
The closing market price of the Equity Shares as on the Intimation Date was Rs. 225.75/- on the BSE and Rs. 225.60/- on NSE, respectively.
Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback would be Rs. 48,00,00,000/-, excluding the Transaction Cost.
The funds for the implementation of the Buyback will be sourced out of Company’s current surplus and/or current balances of cash and cash equivalents and other current investments and/ or internal accruals of the Company and forms part of the free reserves of the Company (including securities premium account) and/or such other source(s) as may be permitted by the Buyback Regulations or the Companies Act.
This Company will transfer from its free reserves or securities premium account, a sum equal to the nominal value of the Equity Shares bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements.
The Company confirms that the funds for Buyback will be met out of its internal accruals and not out of the funds borrowed, if any, from banks and financial institutions.
This Buy-Back is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buy-Back, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.
Suprajit Engineering Limited – Manager to the Buyback
| CAPITALSQUARE ADVISORS PRIVATE LIMITED 208, 2nd Floor, AARPEE Center, MIDC Road No 11, CTS 70, Andheri (East), Mumbai- 400 093, Maharashtra, India. Tel: +91-22-668 49999/ +91 98742 83532 Fax: +91-22-668 49998 Website: www.capitalsquare.in Email Id: tanmoy.banerjee@capitalsquare.in /mb@capitalsquare.in Contact Person: Mr. Tanmoy Banerjee SEBI Registration No: INM000012219 CIN: U65999MH2008PTC187863 |
Suprajit Engineering Buyback – Registrar
|
INTEGRATED REGISTRY MANAGEMENT SERVICES PRIVATE LIMITED
30, Ramana Residency, 4th Cross, Sampige Road, Malleswaram, Bengaluru, Karnataka, 560 003, India. Tel: +91 080 – 2346 0815 – 819 Fax: +91 080- 2346 0819 Website: www.integratedindia.in Email Id: gopi@integratedindia.in Contact Person: Mr. J. Gopinath SEBI Registration No: INR000000544 CIN: U65993TN1987PTC014964 |
Suprajit Engineering Ltd Contact Details
| Company Contact Details |
| SUPRAJIT ENGINEERING LIMITED Corporate Identification Number (CIN): L29199KA1985PLC006934 Registered Office: No.100 & 101, Bommasandra Industrial Area, Bengaluru, Karnataka, 560 099 India | Tel. No.: +91 080-4342 1100 Contact Person: Mr. Medappa Gowda J, Company Secretary and Compliance Officer E-mail: investors@suprajit.com | Website: www.suprajit.com |
Suprajit Engineering Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Suprajit Engineering Ltd – Public Announcement
FAQs of Suprajit Engineering Buyback
What is the Suprajit Engineering Buyback Period?
Suprajit Engineering Buyback Period is briefly the time interval starting from date of declaration of results of the postal ballot through remote e-voting i.e. February 11, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. May 05, 2021.
What type of buyback is Suprajit Engineering Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. 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 Suprajit Engineering Buyback Offer?
Suprajit Engineering Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 15,00,000 Fully paid up Equity shares, adhering to the buyback price.
When Suprajit Engineering Buyback offer will start?
As per the released schedule, the Suprajit Engineering Buyback offer will start on April 08, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Suprajit Engineering Buyback at all times, we ensure you have access to the right data.
When is the closing date of Suprajit Engineering Buyback?
For the ease in access to the dates and related aspects, we have segregated the closing date of Suprajit Engineering Buyback. The buyback would stay open from April 08, 2021, and would close on April 26, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Suprajit Engineering Buyback?
The amount at which the shares are taken back by the company is referred to asSuprajit Engineering Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.320, the price paid to each eligible shareholder.
What is the record date for Suprajit Engineering Buyback offer?
Record date of Suprajit Engineering Buyback is February 22, 2021. 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 Suprajit Engineering Buyback?
Suprajit Engineering Buyback Size is Rs.48,00,00,000 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 Suprajit Engineering Buyback?
Objective of the Suprajit Engineering Buyback is to enhance the total return made by equity shareholders. Herein, the excessive funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Suprajit Engineering Buyback offer?
Designated registrar of Suprajit Engineering Buyback is Integrated Registry Management Services 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 Suprajit Engineering Buyback offer?
Manager to the Suprajit Engineering Buyback is Capitalsquare Advisors Private 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 Suprajit Engineering 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 Suprajit Engineering 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 Suprajit Engineering Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Suprajit Engineering Buyback Dates.
What can be the Impact of Suprajit Engineering 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 Suprajit Engineering Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download 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.
Market Guide
Featured Topics