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 Type||Tender Offer|
|Buyback Offer Amount||Rs. 100,00,00,000/-|
|Buyback No. of Shares||1,00,00,000|
|Face Value||Rs. 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 Ratio||Total Shares Accepted||Buyback Price||Buyback Amount||Profit||Profit%|
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
Company’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)
|Particulars||For the year|
ended March 31,
|For the year|
|Depreciation and Amortization|
|Profit/(Loss) before Tax||27209.00||15943.39||28271.61|
|Profit/(Loss) after Tax||22056.35||10974.37||23356.25|
|Equity share capital||2579.47||2579.47||2579.47|
Triveni Engineering & Industries Limited Buyback Dates
|Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares||Monday June 3, 2019|
|Date of publication of Public Announcement for the Buy-back||Wednesday, June 5, 2019|
|Record Date for determining the Buy-back Entitlement and the Eligible Shareholders||Wednesday, 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:
|Parameters||Based on Consolidated Financial|
|Based on Standalone Financial|
|Pre Buyback||Post Buyback||Pre Buyback||Post Buyback|
|Net Worth (Rs in Lakhs)||104046.61||94046.61||110372.73||100372.73|
|Return on Net Worth %||23.42%||24.73%||21.48%||22.60%|
|Earnings Per Equity Share (EPS)|
(Basic) (in Rs)
|Book Value per share (in Rs)||40.34||37.93||42.79||40.48|
|Price Earnings (PE) Multiple||8.93||8.58||9.09||8.74|
|Debt/ Equity ratio||1.68||1.86||1.58||1.74|
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
Mumbai 400 013
Tel: +91 22 3395 8233
Fax: +91 22 3078 8584
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
Telangana 500 032, India
Tel: +91 40 6716 2222
Fax: +91 40 2343 1551
Investor Grievance Id: email@example.com
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|
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
Triveni Engineering & Industries Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
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