Supreme Petrochem Buyback Review, Offer Details, Price, Dates, Size & more

In this article, we will discuss about Supreme Petrochem Company Limited Buyback offer, buyback price, buyback size, Supreme Petrochem Buyback record date, company financial, buyback necessity and its impact on company.

Supreme Petrochem Limited Buyback Details

Buyback TypeTender Offer
Opening DateMarch 19, 2020
Closing DateSeptember 18, 2020
Buyback Offer AmountRs.6,267 lakhs
Buyback No. of Shares41,00,000
Face ValueRs.10
Date of Buyback ApprovalMarch 12, 2020
Date of Public AnnouncementMarch 16, 2020
Buy Back PriceRs.185.00
Buy Back Premium20.56%
Date of Board MeetingMarch 12, 2020

Supreme Petrochem Buyback Opening and Closing Date

The starting and closing date of this buyback is from March 19, 2020 to September 18, 2020.

Supreme Petrochem Buyback Cash Offer

Cash Offer to Buy-back up to 41,00,000 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 9.998% of the total number of equity shares.

Supreme Petrochem Buyback Record Date

The decided record date is [●].

Supreme Petrochem Buyback Price

At a price of Rs.185.00 per Equity Share.

Supreme Petrochem Buyback Size

At a buyback price of Rs.185.00 payable in cash for an aggregate maximum amount of Rs.6,267 lakhs.

Supreme Petrochem 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.


Supreme Petrochem Company 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%200185370001300010.83%
40%400185740002600021.67%
60%6001851110003900032.50%
80%8001851480005200043.33%
100%10001851850006500054.17%

Profit is calculated from Mar 19, 2020 share price i.e. Rs.120 per share of Supreme Petrochem Company Limited.

According to the above table, if a shareowner applies for 1000 shares of Supreme Petrochem Company limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.185 per share & receive Rs.13000 as profit amount & 10.83% 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.185 & receive a profit of Rs.39000 @ 32.50% profit percentage.


Supreme Petrochem Company Limited Buyback Overview

Supreme Petrochem BuybackThe Company was incorporated on December 14, 1989 under the name “Supreme Petrochem Limited” and the Certificate of Commencement of Business was obtained on February 13, 1990. The Company is promoted by Supreme Industries Limited and R. Raheja Investments Private Limited.

The Company is engaged in the business of manufacture and sale of Polystyrene, Expandable Polystyrene (including Food Grade Polystyrene), Specialty Polystyrene and Extruded Polystyrene-Insulation Board.

The Company markets its products through a network of distributors, monitored through marketing offices at Noida, Chennai, Bangalore, Hyderabad and Kolkatta in addition to the Corporate Office in Mumbai. The Company’s products have markets in over 100 countries around the globe.


Company Finances – Supreme Petrochem Company Limited

The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the nine months period ended December 31, 2019 are provided below:

[In Rs. Lakhs]

ParticularsFor the nine months period ended December 31, 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income207080.03320379.64303462.52292610.93
Total Expenses (excluding Interest, depreciation)195203.12310045.78283033.81262134.12
Finance Cost468.90390.36460.39470.15
Depreciation and amortization expenses2675.702327.202074.682221.83
Profit before tax8732.317616.3017893.6427784.84
Provision for tax
(including Deferred Tax)
818.242695.616281.589843.61
Profit /(Loss) after tax7914.074920.6911612.0617941.23
Equity Share Capital9650.20*9650.209650.209650.20
Other Equity53962.7353029.2353345.4246996.37
Networth63612.9362679.4362995.6256646.57
Total Debt

Supreme Petrochem Buyback Dates

Date of Board Meeting approving the BuybackMarch 12, 2020
Date of publication of Public Announcement for BuybackMarch 16, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders[●]
Buyback Opening dateMarch 19,2020
Buyback Closing dateSeptember 18, 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

The Public Announcement dated March 16, 2020 was published on March 16, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution:

PublicationLanguageEdition

Necessity of Supreme Petrochem Company Limited Buyback

The Company’s management strives to increase the Equity Shareholders’ value and the Buyback would result in the following benefits, amongst other things:

(a) Optimize returns to shareholders;

(b) Enhance overall shareholders value; and

(c) Optimize the capital structure


Impact of Supreme Petrochem Company Limited Buyback on the Company

The 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 resulting in a marginal loss of other income.

The Buy-back of Equity Shares will result in a reduction in share capital and consequently, is expected to be EPS accretive. The Company believes that the Buy-back will contribute to the overall enhancement of shareholders’ value going forward.

Pursuant to Regulation 16(ii) of the SEBI Buy-back Regulations, the Promoters are not entitled to participate under the Buy-back. The Buy-back of Equity Shares will not result in a change in control or otherwise affect the existing management structure of the Company.

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.

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended September 30, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended September 30, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)
Return on Net worth (%)
Earnings Per Share (Rs)
Book Value per Share (Rs)
P/E as per the latest audited standalone financial statements
Total Debt / Equity Ratio

Basis of Calculating Supreme Petrochem Company Buyback Price

The Maximum Buy-back Price of Rs.185.00 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 is at a premium of 20.56% and 20.88% over the closing prices on BSE Limited (“BSE”) (i.e. Rs.153.45 and the National Stock Exchange of India Limited (“NSE”) (i.e. Rs.153.05 , respectively, on March 05, 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 20.18% and 20.20%, 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 weeks preceding the date of the Board meeting on BSE and NSE respectively.

The Buy-back is proposed to be completed within a maximum period of 6 months from the date of opening of the Buy-back. Subject to the Maximum Buy-back Price of Rs.185.00 per Equity Share for the Buy-back and maximum validity period of 6 months from the date of opening of the Buy-back and achievement of the Minimum Buy-back Size.

The amount required by the Company for the Buy-back will be from the sale of mutual funds/liquid investments held, bank deposits and internal accruals of the Company.


Source of Funds for the Buyback

Based on the Minimum Buy-back Size and the Maximum Buy-back Price, the Company will purchase a indicative minimum of 16,93,784 Equity Shares (“Minimum Buy-back Shares”) and based on Maximum Buy-back Size and the Maximum Buy-back Price, the indicative maximum number of Equity Shares bought back would be 33,87,567 Equity Shares.

Further, the number of Equity Shares bought back will not exceed 25% of the total paid up equity capital of the Company as on March 31, 2019 (i.e. 2,41,25,489) Equity Shares.

The Company proposes to implement the Buy-back out of its securities premium account and other free reserves. 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 out of sale of mutual funds/liquid investments held, bank deposits and internal accruals of the Company.


Supreme Petrochem Company Limited – Merchant Banker 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. Ankit Bhatia
Email: supremepetrochem.buyback@axiscap.in; Website: www.axiscapital.co.in

Supreme Petrochem Company Limited – Registrar to the Buyback

KFIN TECHNOLOGIES PRIVATE LIMITED
(Formerly known as “Karvy Fintech Private Limited”)
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: Mr. M Murali Krishna
Email: einward.ris@kfintech.com; Website: www.kfintech.com
SEBI Registration Number: INR000000221
Corporate Identity Number: U72400TG2017PTC117649

Supreme Petrochem Company Limited Contact Details

Company Contact Details
Supreme Petrochem Limited
Corporate Identification Number (CIN): L23200MH1989PLC054633
Registered Office: Building No. 11, 5th Floor, Solitaire Corporate Park, 167, Guru Hargovindji Marg, (Andheri-Ghatkopar Link Road), Chakala, Andheri (East), Mumbai – 400 093
Tel.: 91 22 6709 1900; Fax: 91 22 4005 5681; Email: investorhelpine@spl.co.in; Website: www.supremepetrochem.com

 


Supreme Petrochem Company Limited Buyback News

News 1 – Buyback PDF / Draft Letter of Offer [Download]

News 2 – Supreme Petrochem Company Ltd – Public Announcement


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