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Triveni Engineering Buyback Review, Offer Details, Price, Dates & more

In this article, we will discuss the Triveni Engineering & Industries Limited Buyback offer, buyback price, Triveni Engineering buyback size, record date, company financial, buyback necessity and its impact on the company.

Triveni Engineering Buyback Details

Buyback TypeTender Offer
Opening Date
Closing Date
Buyback Offer AmountRs. 100,00,00,000/-
Buyback No. of Shares 1,00,00,000
Face ValueRs. 1/-
Date of Buyback Approval June 3, 2019
Date of Public Announcement June 5, 2019
Buy Back Price Rs. 100/-
Buy Back Premium 47.06%

Triveni Engineering Buyback Opening and Closing Date

The starting and closing dates of this buyback are NA.

Triveni Engineering Buyback Cash Offer

The Cash Offer to Buy-back up to 1,00,00,000 (One Core only) fully paid-up equity shares of the Company of face value of Rs. 1 each.

Triveni Engineering Buyback Record Date

The decided record date is Wednesday, June 19, 2019.

Triveni Engineering Buyback Price

At a price of Rs. 100/- (Rupees One Hundred Only) per Equity Share.

Triveni Engineering Buyback Size

The Buyback is for an aggregate amount not exceeding Rs. 100,00,00,000 (Indian Rupees One Hundred Crore only).


Triveni Engineering & Industries 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%20010020000700010.77%
40%400100400001400021.54%
60%600100600002100032.31%
80%800100800002800043.08%
100%10001001000003500053.85%

Profit is calculated from 19th June 2019 share price i.e. Rs.65 per share of Triveni Engineering & Industries Limited.

According to the above table, if a share owner applies for 1000 shares of Triveni Engineering & Industries Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.100 per share & receive Rs.7000 as profit amount & 10.77% 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.100 & receive a profit of Rs.21000 @ 32.31% profit percentage.


Triveni Engineering & Industries Limited Buyback Overview

Triveni Engineering buybackCompany’s sugar operations involve the manufacture of sugar (including refined and pharmaceutical grade sugar), generation of power (including export of power to the grid) through their bagasse-based cogeneration plants and production of Ethanol in our molasses based distilleries.

The Company has seven sugar manufacturing facilities across the state of Uttar Pradesh, Cogeneration and Incidental Cogeneration plants at five of our sugar units and two distilleries. The Company has core competencies in offering engineered-to-order products and turnkey solutions in our Gear and Water business.

Company’s Gear Business comprises engineering, design, manufacture of engineered-to-order products along with after-market services, including retrofitment whereas the offerings of Water Business include customised equipment / turnkey solutions. The manufacturing facilities for Gear Business are located in Mysuru, Karnataka, whereas the Water Business is based at Noida, with projects being executed all over India


Company Finances –  Triveni Engineering & Industries Limited

The salient financial information of the Company, as extracted from the audited standalone results for the fiscal year 2017, 2018, and 2019:

(Rs in Lakhs)

ParticularsFor the year
ended March 31,
2019
For the year
ended March
31, 2018
March 31,
2017
Audited
Total Income321917.83343593.42299724.06
Total Expenses284249.76313579.60244529.28
Depreciation and Amortization
expense
5695.145536.565720.99
Profit/(Loss) before Tax27209.0015943.3928271.61
Profit/(Loss) after Tax22056.3510974.3723356.25
Equity share capital2579.472579.472579.47
Net worth104046.6184304.3773984.48
Debt172590.39124224.97173075.41

Triveni Engineering & Industries Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesMonday June 3, 2019
Date of publication of Public Announcement for the Buy-backWednesday, June 5, 2019
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersWednesday, June 19, 2019
Buy-back opens on / Buy-back Opening Date
Buy-back closes on / Buy-back Closing Date
Last date of verification by Registrar to Buy-back
Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-back
*Last date of settlement of bids on the Stock Exchange
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker
Last date of extinguishment of Equity Shares bought back


Necessity of Triveni Engineering & Industries 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:

  • Buyback will improve the Earnings Per Share (EPS), Return on Capital Employed (ROCE) and Return on Equity (ROE);
  • The Buyback will help in achieving an optimal capital structure;
  • Buyback will help the Company to distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing their overall return;
  • The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of number of shares as per the entitlement of the shareholders 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;
  • Buyback gives an option to the Equity Shareholders to either choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or choose to not participate and enjoy a resultant increase in their percentage shareholding, post Buyback, without additional investment

Impact of Triveni Buyback on the Company

They believe that 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.

Post completion of the Buy-back, the debt-equity ratio of the Company on a standalone basis and a consolidated basis will not be greater than twice the aggregate of the paid-up share capital and free reserves.

Salient financial parameters consequent to the Buyback based on the audited standalone and consolidated financial
statements for the half year ended on March 31, 2019, are as under:

ParametersBased on Consolidated Financial
Statements
Based on Standalone Financial
Statements
Pre BuybackPost BuybackPre BuybackPost Buyback
Net Worth (Rs in Lakhs)104046.6194046.61110372.73100372.73
Return on Net Worth %23.42%24.73%21.48%22.60%
Earnings Per Equity Share (EPS)
(Basic) (in Rs)
8.558.908.398.73
Book Value per share (in Rs)40.3437.9342.7940.48
Price Earnings (PE) Multiple8.938.589.098.74
Debt/ Equity ratio1.681.861.581.74

Basis of Calculating Triveni Engineering & Industries Buyback Price

The Buyback Offer Price being INR 100 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 the Stock Exchanges, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the EPS.

More on Triveni Engineering & Industries Buyback Price Calculation

The Buyback Offer Price i.e., INR 100 per Equity Share represents, premium of 62.91% and 62.81% over the volume weighted average market price of the Equity Shares on BSE and on NSE, respectively, during the three months preceding May 21, 2019, being the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buyback and premium of 47.06% and 47.17% over the closing market price of the Equity Shares on BSE and on NSE, respectively, as on May 21, 2019.


Source of Funds for the Buyback

The funds required for implementation of the Buyback (including the Transaction Costs) will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company and/or liquidation of financial instruments held by the Company.

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.

The 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 accruals and not out of the funds borrowed, if any, from banks and financial institutions.


Triveni Engineering & Industries Limited – Manager to the Buyback

HDFC Bank Limited
Peninsula Business Park
‘B’ Wing, 4th Floor, Senapati Bapat Marg
Lower Parel
Mumbai 400 013
Tel: +91 22 3395 8233
Fax: +91 22 3078 8584
E-mail: [email protected]
Contact Person: Mr. Ankit Bhatia / Mr. Ravi Sharma
SEBI Registration No.: INM000011252
Validity Period: Permanent

Triveni Engineering & Industries Limited – Registrar to the Buyback

Karvy Fintech Private Limited
Karvy Selenium Tower B Plot 31-32, Gachibowli
Financial District, Nanakramguda
Serilingampally
Hyderabad Rangareddi
Telangana 500 032, India
Tel: +91 40 6716 2222
Fax: +91 40 2343 1551
E-mail: [email protected]
Investor Grievance Id: [email protected]
Contact Person: Mr. M. Murali Krishna
SEBI Registration No.: INR000000221
Validity Period: Permanent

Triveni Engineering & Industries Limited Contact Details

Company Contact Details
TRIVENI ENGINEERING & INDUSTRIES LIMITED
CIN: L15421UP1932PLC022174
Registered Office: Deoband, Saharanpur, Uttar Pradesh-247554
Contact Person: Geeta Bhalla, Group Vice-President, Company Secretary and Compliance Officer
Tel. No.: +91 120 4308000, Fax No.: +91 120 4311010
E-mail: [email protected]
Website: www.trivenigroup.com

 


Triveni Engineering & Industries Limited Buyback News

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


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