Tanla Solutions Buyback Review, Offer Details, Price, Dates, Size & more

In 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.

Tanla Solutions Limited Buyback Details

Buyback TypeTender Offer
Opening DateNA
Closing DateNA
Buyback Offer AmountRs.154,00,00,000
Buyback No. of Shares1,90,12,345
Face ValueRs.1
Date of Buyback ApprovalApril 22, 2020
Date of Public AnnouncementMay 26, 2020
Buy Back PriceRs.81
Buy Back Premium55.47%
Date of Board MeetingApril 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 RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200811620021002.98%
40%400813240042005.96%
60%600814860063008.94%
80%8008164800840011.91%
100%100081810001050014.89%

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

Tanla Solutions BuybackThe 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.


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]

ParticularsFor the period ended Dec 31, 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income7,02,54,0109,56,04,4014,67,22,3302,39,76,772
Total Expenses (excluding Interest, depreciation)730,67,59,336728,29,39,200640,62,51,669491,57,07,578
Finance Cost4,48,94,7832,95,45,07669,23,571Nil
Depreciation and Amortization2,74,06,81,72568,08,30,27648,91,48,45011,05,51,022
Profit before tax(181,58,74,610)19,63,77,4336,37,50,908(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)17,07,57,69513,09,21,659(62,88,217)
Equity Share Capital14,58,84,53411,56,26,82711,24,21,95210,74,85,785
Reserves711,44,54,410688,15,27,178652,72,27,014629,81,62,680
Networth726,03,38,944699,71,54,005663,96,48,966640,56,48,465
Total DebtNil59,88,20,248NilNil

Tanla Solutions Limited Buyback Dates

Date of Board Meeting approving the BuybackApril 22, 2020
Date of publication of Public Announcement for BuybackMay 27, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersJune 10, 2020
Buyback Opening dateJuly 1, 2020
Buyback Closing dateJuly 14, 2020
Last Date of verification of Tender Forms by the RegistrarJuly 22, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarJuly 22, 2020
*Last date of Settlement of Bids on the BSE LimitedJuly 23, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedJuly 23, 2020
*Last date of Extinguishment of Equity SharesJuly 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:

PublicationLanguageEdition
Business StandardEnglishAll editions
Financial ExpressEnglishAll editions
Business StandardHindiAll editions
Business StandardHindiAll editions
JansattaHindiAll editions
Daily Hindi MilapHindiHyderabad
Namasthe TelanganaTeluguHyderabad

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:

  1. 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;
  2. 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;
  3. 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
  4. 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-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)699,71,54,005545,71,54,005
Return on Net worth (%)2.443.12
Earnings Per Share Basic (Rs)1.481.77
Book Value per Share (Rs)60.5156.48
Total Debt / Equity Ratio0.080.10

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.

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


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