Welspun India Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, we will discuss Welspun India Buyback offer, buyback price, buyback size, Welspun India Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – Welspun India Share Price
Welspun India Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | JUNE 22, 2021 |
| Closing Date | JULY 5, 2021 |
| Buyback Offer Amount | Rs.200 CRORES |
| Buyback No. of Shares | 1,66,66,666 |
| Face Value | Rs.1 |
| Date of Buyback Approval | May 14, 2021 |
| Date of Public Announcement | May 18, 2021 |
| Buy Back Price | Rs.120 |
| Buy Back Premium | 28.34% |
| Date of Board Meeting | May 14, 2021 |
Welspun India Buyback Opening and Closing Date
The starting and closing date of this buyback are JUNE 22, 2021, and JULY 5, 2021.
Welspun India Buyback Cash Offer
The Cash Offer to Buy-back up to 1,66,66,666 fully paid-up equity shares of the Company of the face value of Rs.1 each, representing 1.66% of the total number of equity shares.
Welspun India Buyback Record Date
The decided record date of this buyback is MAY 26, 2021.
Welspun India Buyback Price
At a price of Rs.120 per Equity Share.
Welspun India Buyback Size
At a buyback price of Rs.120/- payable in cash for an aggregate consideration not exceeding Rs.200 CRORES/-.
Welspun India Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
Welspun India Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 120 | 24000 | 4800 | 5.00% |
| 40% | 400 | 120 | 48000 | 9600 | 10.00% |
| 60% | 600 | 120 | 72000 | 14400 | 15.00% |
| 80% | 800 | 120 | 96000 | 19200 | 20.00% |
| 100% | 1000 | 120 | 120000 | 24000 | 25.00% |
Profit is calculated from 25 May 2021 share price i.e. Rs.96 per share of Welspun India.
According to the above table, if a shareowner applies for 1000 shares of Welspun India & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.120 per share & receive Rs.4800 as profit amount & 5.00% 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.120 & receive a profit of Rs.14400 @ 15.00% profit percentage.
Welspun India Buyback Overview
The Company was incorporated on January 17, 1985, under the name Welspun Winilon Silk Mills Private Limited, as a private limited company under the erstwhile Companies Act, 1956 with registration number 35092 with the Registrar of Companies, Maharashtra, Mumbai (erstwhile Bombay).
The name of the Company was subsequently changed to Welspun Polyester (India) Limited pursuant to a new Certificate of Incorporation dated January 12, 1989, issued by the Registrar of Companies, Maharashtra, Mumbai (erstwhile Bombay).
The name of the Company was further changed to Welspun India Limited pursuant to a new Certificate of Incorporation dated October 12, 1995, issued by the Registrar of Companies, Maharashtra, Mumbai (erstwhile Bombay).
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Company Finances – Welspun India
The salient features of the financial information of the Company for the last three financial years as at and for the financial year ended March 31, 2021, March 31, 2020, and March 31, 2019, on a consolidated as well as a standalone basis are given below:
[In Rs. lakhs]
| Particulars | 12 Months period ended March 31 | ||
| 2021 | 2020 | 2019 | |
| Total Income | 603,956.60 | 536,670.90 | 547,830.40 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 5,30,549.80 | 4,79,729.80 | 5,09,445.30 |
| Interest | – | – | – |
| Depreciation and amortization expenses | 33,014.20 | 38,814.00 | 40,154.40 |
| Profit before tax | 73,406.80 | 61,257.10 | 17,582.70 |
| Income Tax Expenses / (Credit) (including Deferred Tax) |
20,739.80 | 13,767.90 | 3,406.20 |
| Profit /(Loss) after tax | 52,667.00 | 47,489.20 | 14,176.50 |
| Equity Share Capital | 10,047.25 | 10,047.25 | *10,047.25 |
| Reserve and Surplus | – | – | – |
| Net-worth | 314,332.17 | 2,61,171.27 | 229,427.96 |
| Total Debt (Excluding working capital loans) | 35,999.60 | 102,357.10 | 151,080.60 |
| Total Debt | 139,440.10 | 225,984.30 | 251,029.50 |
Welspun India Buyback Dates
| Date of Board Meeting approving the Buyback | May 14, 2021 |
| Date of publication of Public Announcement for Buyback | May 18, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | May 26, 2021 |
| Buyback Opening date | June 22, 2021 |
| Buyback Closing date | July 5, 2021 |
| Last date of receipt of the completed tender form and other specified documents | July 7, 2021 |
| Last Date of verification of Tender Forms by the Registrar | July 9, 2021 |
| *Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | July 13, 2021 |
| Last date of Settlement of Bids on the BSE Limited | July 14, 2021 |
| *Last date of return of unaccepted Equity Shares by BSE Limited | July 14, 2021 |
| Last date of Extinguishment of Equity Shares | July 21, 2021 |
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated May 17, 2021, for the Buyback of Equity Shares published on May 18, 2021, in the following newspapers:
| Publication | Language | Edition |
| Financial Express | English | All editions |
| Jansatta | Hindi | All editions |
| Kutch Mitra | Gujarati | Bhuj edition |
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Necessity of Welspun India Buyback
The Buyback is a capital allocation decision taken by the Company. Buyback is a more efficient form of returning surplus cash to the shareholders holding Equity Shares of the Company, inter-alia, for the following reasons:
i. Share buyback is the acquisition by a company of its own Equity Shares. The Buyback will help the Company to return surplus cash to its Members holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the Members;
ii. The Buyback may help in improving return on equity, by a reduction in the equity base, improvement in earnings per equity share, and enhanced return on invested capital which may consequentially lead to a long-term increase in shareholders’ value. 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 and continued capital investment, as and when required; and
iii. The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash instead 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, without any additional investment.
Impact of Welspun India Buyback on the Company
The Buyback is not likely to cause any impact on the profitability or 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.
The Buyback is not expected to impact growth opportunities for the Company.
Buyback will not 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 standalone financial statements for the period ended on March 31, 2021, are as under:
| Parameter (based on Audited Condensed Financial Statements) | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in lakh) | 3,14,332.17 | 2,94,332.17 |
| Return on Net worth (%) | 16.76% | 17.89% |
| Earnings Per Share (Rs) | 5.24 | 5.33 |
| Book Value per Share (Rs) | 31.29 | 29.79 |
| P/E as per the latest audited standalone financial statements (BSE) | 15.43 | 15.17 |
| Total Debt / Equity Ratio | 0.44 | 0.47 |
Basis of Calculating Welspun India Buyback Price
The Equity Shares of the Company are proposed to be bought back at a price of Rs. 120/- (Rupees One Hundred Twenty only) per Equity Shares (the “Buyback Price”).
Buyback Price has been arrived at after considering various factors including, but not limited to the trends in the market prices of the Equity Shares on the 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 Offer Price represents:
The Buyback Price of Rs. 120/- (Rupees One Hundred Twenty only) per Equity Share represents a premium of 28.34% and 28.27% over the closing market price of the Equity Shares on the BSE and the NSE respectively, as of Friday, May 7, 2021, being the one day preceding the date on which the Company intimated the Stock Exchanges of the date of the meeting of the Board wherein proposal of the Buyback was to be considered.
Further, the Buyback Price represents a premium of 56.47% and 56.43% over the average closing market prices of the Equity Shares on the BSE and on the NSE, respectively, during the three months preceding May 8, 2021, being the date on which the Company intimated the Stock Exchanges of the date of the meeting of the Board of Directors, wherein the proposal of the Buyback was to be considered.
The closing market price of the Equity Shares as on one day prior to the date of intimation to BSE and NSE, date of intimation being Saturday, for the Board Meeting for considering the Buyback i.e. May 7, 2021, was Rs. 93.50 per Equity Share and Rs. 93.55 per Equity Share respectively.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be deployed by the Company for the Buyback would be Rs. 200 Crores (Rupees Two Hundred Crores only) excluding any expense incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, brokerage, applicable taxes such as income tax, buyback taxes, securities transaction taxes, goods and services tax, stamp duty, advisors’ fees, public announcement publication expenses, printing, and dispatch expenses, and other incidental and related expenses
The funds for the Buyback will be sourced from internal accruals. The Company has confirmed that funds for Buyback will be available from cash and bank balances and/or liquidation of financial instruments and/or other sources available with the Company as permitted by the Buyback Regulations.
The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and details of such transfer shall be disclosed in its subsequent audited financial statement. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
Welspun India – Manager to the Buyback
| Buyback Manager Details |
| DAM Capital Advisors Limited (Formerly IDFC Securities Limited) One BKC, Tower C, 15th Floor, Unit No. 1511, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Tel: +91 22 4202 2500; Fax +91 22 4202 2504 Email: welspunindia.buyback@damcapital.in Website: www.damcapital.in Contact Person: Chandresh Sharma SEBI Registration No.: MB/INM000011336 Validity Period: Permanent CIN: U99999MH1993PLC071865 |
Welspun India – Registrar to the Buyback
| Registrar Details |
| Link Intime India Private Limited C- 101, 1st Floor, 247 Park, L. B. S. Marg, Vikhroli (West), Mumbai – 400 083, Maharashtra, India Tel: +91 22 4918 6200; Fax: +91 22 4918 6195 Email: welspun.buyback2021@linkintime.co.in Website: www.linkintime.co.in Contact Person: Mr. Sumeet Deshpande SEBI Registration: INR000004058 Validity Period: Permanent CIN: U67190MH1999PTC118368 |
Welspun India Contact Details
| Company Contact Details |
| Welspun India Limited CIN: L17110GJ1985PLC033271 Registered Office: Welspun City, Village Versamedi, Taluka Anjar, District Kutch, Gujarat-370 110, India. Corporate Office: Welspun House, 6th Floor, Kamala City, Senapati Bapat Marg, Lower Parel (West), Mumbai- 400 013, Maharashtra, India. Tel.: +91 22 6613 6000; Fax: +91 22 2490 8020 E-mail: companysecretary_wil@welspun.com; Website: www.welspunindia.com Contact Person: Mr. Shashikant Thorat, Company Secretary |
Welspun India Buyback News
News 1 – Welspun India Buyback PDF / Letter of Offer [Download]
News 2 – Welspun India Ltd – Draft Letter of Offer [Download]
FAQs of Welspun India Buyback
What is the Welspun India Buyback Period?
Welspun India 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 Welspun India Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The 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 Welspun India Buyback Offer?
Welspun India Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 1,66,66,666 Fully paid up Equity shares, adhering to the buyback price.
When Welspun India Buyback offer will start?
As per the released schedule, the Welspun India Buyback offer will start on JUNE 22, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Welspun India Buyback at all times, we ensure you have access to the right data.
When is the closing date of Welspun India Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Welspun India Buyback. The buyback would close on JULY 5, 2021. The closing date is the last day on which the Buyback shall be open for the shareholders.
What is the offer price for Welspun India Buyback?
The amount at which the shares are taken back by the company is referred to as the Welspun India Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.120, the price paid to each eligible shareholder.
What is the record date for Welspun India Buyback offer?
The record date of Welspun India Buyback is MAY 26, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, the letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Welspun India Buyback?
Welspun India Buyback Size is Rs.200 CRORES 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 Welspun India Buyback?
The objective of the Welspun India Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar of the Welspun India Buyback offer?
The designated registrar of Welspun India Buyback is LINK INTIME INDIA 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 of the Welspun India Buyback offer?
The manager of the Welspun India Buyback is DAM Capital Advisors Limited. The 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 Welspun India buyback acceptance ratio?
The 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 buy back 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 Welspun India 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 Welspun India Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Welspun India Buyback Dates.
What can be the Impact of Welspun India 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. 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 Welspun India 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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