Tanla Solutions Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, they will discuss about Tanla Solutions Limited Buyback offer, buyback price, buyback size, Tanla Solutions 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 – Tanla Solutions Share Price
Tanla Solutions Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | NA |
| Closing Date | NA |
| Buyback Offer Amount | Rs.154,00,00,000 |
| Buyback No. of Shares | 1,90,12,345 |
| Face Value | Rs.1 |
| Date of Buyback Approval | April 22, 2020 |
| Date of Public Announcement | May 26, 2020 |
| Buy Back Price | Rs.81 |
| Buy Back Premium | 55.47% |
| Date of Board Meeting | April 22, 2020 |
Tanla Solutions Buyback Opening and Closing Date
The starting and closing date of this buyback is from July 1, 2020 to July 14, 2020.
Tanla Solutions Buyback Cash Offer
Cash Offer to Buy-back up to 1,90,12,345 fully paid-up equity shares of the Company of face value of Rs.1 each, representing 12.49% of the total number of equity shares.
Tanla Solutions Buyback Record Date
The decided record date is June 10, 2020.
Tanla Solutions Buyback Price
At a price of Rs.81 per Equity Share.
Tanla Solutions Buyback Size
At a buyback price of Rs.81 payable in cash for an aggregate maximum amount of Rs.154,00,00,000.
Tanla Solutions 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.
Tanla Solutions 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 | 81 | 16200 | 2100 | 2.98% |
| 40% | 400 | 81 | 32400 | 4200 | 5.96% |
| 60% | 600 | 81 | 48600 | 6300 | 8.94% |
| 80% | 800 | 81 | 64800 | 8400 | 11.91% |
| 100% | 1000 | 81 | 81000 | 10500 | 14.89% |
Profit is calculated from Jun 30, 2020 share price i.e. Rs.70.5 per share of Tanla Solutions Limited.
According to the above table, if a shareowner applies for 1000 shares of Tanla Solutions limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.81 per share & receive Rs.2100 as profit amount & 2.98% 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.81 & receive a profit of Rs.6300 @ 8.94% profit percentage.
Tanla Solutions Limited Buyback Overview
The Company was originally incorporated as a public limited company in the name of Maruti Dairy Products Limited on July 28, 1995 under the Companies Act, 1956. The Company obtained its certificate of commencement of business on August 11, 1995.
The registered office of the Company is situated at Tanla Technology Centre, Hitech City Road, Madhapur, Hyderabad – 500 081, Telangana, India. The Company is listed on BSE and NSE. The Company is a cloud communication provider and has its headquarters based out of Hyderabad, India. Further, the Company has its subsidiaries in India and Singapore, and a branch office in Dubai.
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Company Finances – Tanla Solutions 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 INR]
| Particulars | For the period ended Dec 31, 2019 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2019 | 2018 | 2017 | ||
| Total Income | 7,02,54,010 | 9,56,04,401 | 4,67,22,330 | 2,39,76,772 |
| Total Expenses (excluding Interest, depreciation) | 730,67,59,336 | 728,29,39,200 | 640,62,51,669 | 491,57,07,578 |
| Finance Cost | 4,48,94,783 | 2,95,45,076 | 69,23,571 | Nil |
| Depreciation and Amortization | 2,74,06,81,725 | 68,08,30,276 | 48,91,48,450 | 11,05,51,022 |
| Profit before tax | (181,58,74,610) | 19,63,77,433 | 6,37,50,908 | (1,51,31,599) |
| Provision for tax (including Deferred Tax) |
(40,49,89,404) | 2,56,19,738 | (6,71,70,751) | (88,43,382) |
| Profit /(Loss) after tax | (141,08,85,206) | 17,07,57,695 | 13,09,21,659 | (62,88,217) |
| Equity Share Capital | 14,58,84,534 | 11,56,26,827 | 11,24,21,952 | 10,74,85,785 |
| Reserves | 711,44,54,410 | 688,15,27,178 | 652,72,27,014 | 629,81,62,680 |
| Networth | 726,03,38,944 | 699,71,54,005 | 663,96,48,966 | 640,56,48,465 |
| Total Debt | Nil | 59,88,20,248 | Nil | Nil |
Tanla Solutions Limited Buyback Dates
| Date of Board Meeting approving the Buyback | April 22, 2020 |
| Date of publication of Public Announcement for Buyback | May 27, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | June 10, 2020 |
| Buyback Opening date | July 1, 2020 |
| Buyback Closing date | July 14, 2020 |
| Last Date of verification of Tender Forms by the Registrar | July 22, 2020 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | July 22, 2020 |
| *Last date of Settlement of Bids on the BSE Limited | July 23, 2020 |
| Last date of return of unaccepted Equity Shares by BSE Limited | July 23, 2020 |
| *Last date of Extinguishment of Equity Shares | July 30, 2020 |
Details of Public Announcement
The Public Announcement dated March 11, 2020 was published on March 12, 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 i.e. March 10, 2020:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Financial Express | English | All editions |
| Business Standard | Hindi | All editions |
| Business Standard | Hindi | All editions |
| Jansatta | Hindi | All editions |
| Daily Hindi Milap | Hindi | Hyderabad |
| Namasthe Telangana | Telugu | Hyderabad |
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Necessity of Tanla Solutions 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:
- The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
- The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI 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. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder” as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
- The Buyback may help in improving its earning per share and return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value; and
- 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 not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Impact of Tanla Solutions Limited 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 amount available for investment, which the Company could have
otherwise deployed towards generating investment income.
The Company believes that the Buyback will not in any manner impair its ability to pursue growth opportunities
or meet its cash requirements for business operations. The Buyback is likely to result in improvement in earning
per Equity Share and enhance the return on equity. The 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 Equity Shareholders.
The Buyback is not expected to result in a change in control or otherwise affect the existing management
structure 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 Lakhs) | 699,71,54,005 | 545,71,54,005 |
| Return on Net worth (%) | 2.44 | 3.12 |
| Earnings Per Share Basic (Rs) | 1.48 | 1.77 |
| Book Value per Share (Rs) | 60.51 | 56.48 |
| Total Debt / Equity Ratio | 0.08 | 0.10 |
Basis of Calculating Tanla Solutions Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.81/- (Indian Rupees Eighty One Only) per Equity Share.
The Buyback Price of Rs.81/- (Indian Rupees Eighty One Only) per Equity Share has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices of the Equity Shares on Stock Exchanges where the Equity Shares are listed, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the earnings per Equity Share.
The Buyback Price represents
- Premium of 17.70% and 15.76% over the volume weighted average market price of the Equity Shares on NSE and BSE, respectively, during the three months preceding April 17, 2020, being the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback (“Intimation Date”).
- Premium of 55.80% and 55.35% over the volume weighted average market price of the Equity Shares on NSE and BSE, respectively, for two weeks preceding the Intimation Date.
- A Premium of 48.08% over the closing price of the Equity Shares on the Stock Exchanges as on the Intimation Date.
- Premium of 55.47% over the closing price of the Equity Shares on the Stock Exchanges as on April 16, 2020, being the day preceding the Intimation Date.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilised by the Company for the purpose of the Buyback of not exceeding 1,90,12,345 (One Crore Ninety Lakhs Twelve Thousand Three Hundred Forty Five) Equity Shares at a price of INR 81/- (Indian Rupees Eighty One Only) per Equity Share would be an aggregate maximum amount of INR 154,00,00,000/- (Indian Rupees One Hundred and Fifty Four Crores Only) excluding the Transaction Costs.
The funds required for implementation of the Buyback (including the Transaction Costs) will be sourced from current balances of cash and cash equivalents of the Company. The Company will transfer from its free reserves and/or securities premium account a sum equal to the nominal value of the Equity Shares bought back pursuant to the Buyback to the capital redemption reserve account and details of such transfer will be disclosed in the subsequent audited financial statements of the Company. This Company has neither raised nor does it intend to raise additional debt in connection with the Buyback.
The Company confirms that the funds for the Buyback will be made available out of its internal accrual and not out of the funds borrowed, if any, from banks and financial institutions.
Tanla Solutions Limited – Manager to the Buyback
| HDFC BANK LIMITED Investment Banking Group Unit No. 401 & 402, 4th Floor, Tower B Peninsula Business Park, Lower Parel Mumbai 400 013, India Tel. No.: +91 22 3395 8233 Fax No.: +91 22 3078 8584 Email: tsl.buyback@hdfcbank.com Contact Person: Harsh Thakkar / Ravi Sharma Website: www.hdfcbank.com SEBI Registration No.: INM000011252 CIN: L65920MH1994PLC080618 Validity Period: Permanent (unless suspended or cancelled by SEBI) |
Tanla Solutions Limited – Registrar to the Buyback
|
KFin Technologies Private Limited
Selenium, Tower B, Plot No. – 31 & 32, Financial District Nanakramguda, Serilingampally Hyderabad Rangareddi TG 500 032, India Tel. No.: +91 40 6716 2222 Fax No.: +91 40 2343 1551 Email: tanla.buyback@kfintech.com Contact Person: M Murali Krishna Investor Grievance Id: einward.ris@kfintech.com Website: www.kfintech.com SEBI Registration No.: INR000000221 CIN: U72400TG2017PTC117649 Validity Period: Permanent (unless suspended or cancelled by SEBI) |
Tanla Solutions Limited Contact Details
| Company Contact Details |
| TANLA SOLUTIONS LIMITED CIN: L72200TG1995PLC021262 Registered Office: Tanla Technology Centre, Hitech City Road, Madhapur, Hyderabad – 500 081 Tel. No.: +91 40 4009 9999 | Fax No.: +91 40 2312 2999 Contact Person: Seshanuradha Chava, Vice President – Legal & Secretarial E-mail: investorhelp@tanla.com | Website: www.tanla.com |
Tanla Solutions Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – Tanla Solutions Ltd – Public Announcement
FAQs of Tanla Solutions Buyback
What is the Tanla Solutions Buyback Period?
Tanla Solutions 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. NA. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. NA.
What type of buyback is Tanla Solutions 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 Tanla Solutions Buyback Offer?
Tanla Solutions Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 1,90,12,345 Fully paid up Equity shares, adhering to the buyback price.
When Tanla Solutions Buyback offer will start?
As per the released schedule, the Tanla Solutions Buyback offer will start on NA. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Tanla Solutions Buyback at all times, we ensure you have access to the right data.
When is the closing date of Tanla Solutions Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Tanla Solutions Buyback. The buyback would close on NA. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Tanla Solutions Buyback?
The amount at which the shares are taken back by the company is referred to as Tanla Solutions Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.81, the price paid to each eligible shareholder.
What is the record date for Tanla Solutions Buyback offer?
Record date of Tanla Solutions Buyback is June 10, 2020.. 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 Tanla Solutions Buyback?
Tanla Solutions Buyback Size is Rs.154,00,00,000 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 Tanla Solutions Buyback?
The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI 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. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder” as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
Who is the Registrar to Tanla Solutions Buyback offer?
The designated registrar of Tanla Solutions 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 Tanla Solutions Buyback offer?
Manager to the Tanla Solutions Buyback is HDFC BANK 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 Tanla Solutions 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 Tanla Solutions 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 Tanla Solutions Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Tanla Solutions Buyback Dates.
What can be the Impact of Tanla Solutions 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 Tanla Solutions 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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