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Zenith Fibres Buyback – Review, Offer Details, Price, Dates, Size & more

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

Zenith Fibres Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening DateMay 16, 2019
Buyback Closing DateMay 29, 2019
Buyback Offer AmountRs. 3,02,50,000/-
Buyback No. of Shares 5,50,000
Face ValueRs. 10/-
Date of Buyback ApprovalMarch 30, 2019
Date of Public AnnouncementApril 01, 2019
Buy Back Price Rs. 55/-
Buy Back PremiumNA

Zenith Fibres Buyback Opening and Closing Date

The starting and closing dates of this buyback are from May 16, 2019, to May 29, 2019.

Zenith Fibres Buyback Cash Offer

The Cash Offer to Buy-back up to 5,50,000 (Five lakhs fifty thousand only) fully paid-up equity shares of the Company of face value of Rs. 10 each.

Zenith Fibres Buyback Record Date

The decided record date is Friday, April 12, 2019.

Zenith Fibres Buyback Price

At a price of Rs. 55/- (Rupees Fifty Five only) per Equity Share.

Zenith Fibres Buyback Size

The Buyback is for an aggregate amount not exceeding Rs. 3,02,50,000 (Rupees Three Crores Two Lakhs Fifty Thousand only).


Zenith Fibres 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%
40%
60%
80%
100%

Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of Zenith Fibres Limited.

According to the above table, if a share owner applies for 1000 shares of Zenith Fibres Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.56 per share & receive Rs.370 as profit amount & 0.68% 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.56 & receive a profit of Rs.1,110 @ 2.05% profit percentage.


Zenith Fibres Limited Buyback Overview

The Company is engaged in manufacturing of an entire range of Polypropylene Staple Fibre from very fine to coarse Denier.

The Equity Shares of the Company are currently listed on BSE only. Script Code is 514266. ISIN of the Company is INE106C01013.

Company has not made any buyback of its Equity Shares in the last three years.


Company Finances – Zenith Fibres Limited

The salient standalone financial information of the Company, as extracted from the audited results for the last three financial years and limited review financials for nine months period ended December 31, 2018, is detailed below:

(in Rupees)

ParticularsDecember
31, 2018
Financial
Year 2018
Financial
Year 2017
Financial
Year 2016
Total Income23,66,36,08739,62,68,42554,32,40,67366,79,70,273
Total Expenses22,37,36,21334,84,99,50446,12,39,53753,62,56,296
Interest3,07,24010,44,37624,29,27126,71,926
Depreciation45,10,09855,05,53361,95,44072,03,635
Profit before tax1,28,99,8744,77,68,9218,20,01,13613,17,13,977
Provision for tax (including deferred tax)4,25,0171,58,29,9902,84,44,4174,68,05,464
Profit after tax1,24,74,8573,19,38,9315,35,56,7198,49,08,513
Equity Share Capital4,42,23,4604,42,23,4604,42,23,4604,42,23,460
Reserves and Surplus44,25,84,34043,81,06,54141,24,94,89735,89,38,180
Networth48,68,07,80048,23,30,00145,67,18,35740,31,61,640
Total debt (excluding working capital loans)00015,80,693

Zenith Fibres Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesSaturday, March 30, 2019
Date of publication of Public Announcement for the Buy-backTuesday, April 02, 2019
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersFriday, April 12, 2019
Buy-back opens on / Buy-back Opening DateThursday, May 16, 2019
Buy-back closes on / Buy-back Closing DateWednesday, May 29, 2019
Last date of verification by Registrar to Buy-backFriday, June 07, 2019
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-backFriday, June 07, 2019
Last date of settlement of bids on the Stock ExchangeMonday, June 10, 2019
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / BrokerMonday, June 10, 2019
Last date of extinguishment of Equity Shares bought backMonday, June 17, 2019


Necessity of Zenith Fibres Limited Buyback

The Board of Directors of the Company is of the view that the proposed Buyback will help the Company to achieve the following objectives:

  • Optimize returns to shareholders; and
  • Enhance overall shareholders value.

Accordingly, the proposed objectives will be achieved by returning part of surplus cash back to Shareholders through the Buyback process. This may lead to reduction in outstanding Shares, improvement in Earnings per Share and enhanced return on invested capital.

Further, 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.


Impact of Zenith Fibres Limited Buyback on the Company

The Buyback is not likely to cause any material impact on the profitability/earnings of the Company.

The Company confirms that the debt-equity ratio post Buyback will be compliant with the permissible limit of 2:1 prescribed by the Act, even if the response to the Buyback is to the extent of 100% (assuming full acceptance in the Buyback Offer).

Salient financial parameters consequent to the Buyback based on the latest standalone audited results as on March 31, 2018 are as under:

ParametersPre-BuybackPost-Buyback
Networth (Rs.)48,23,30,00145,20,80,001
Return on Networth (%)6.627.06
Earnings per Share (Rs.)7.228.25
Book Value per Share (Rs.)109.07116.75
P / E as per the latest audited financial results*13.2911.63
Total Debt / Equity Ratio00

Basis of Calculating Zenith Fibres Buyback Price

The Buyback Price of Rs. 55 has been arrived at after considering various factors, such as volume weighted average price of the equity shares of the Company on BSE (where the equity shares of the Company are listed) for a period of one month and six months preceding the Date of Notice of Buyback, closing price of the last trading day preceding the Date of Notice of Buyback, book value of the Company and the possible impact of the Buyback on the Earnings Per Share (“EPS”) and financial ratios of the Company and other relevant considerations.

More on Zenith Fibres Buyback Price Calculation

The Buyback Price per Equity Share represents a discount of (2.81)% and (7.82)% over the volume weighted average price of the Company’s Equity Shares on BSE for the one month and six months respectively preceding the Date of Notice of Buyback.


Source of Funds for the Buyback

The Company has confirmed that the funds for the Buyback will be made available from the current surplus and/or cash balances and/or internal accruals of the Company. The Company does not propose raising debt for the Buyback. However, the Company may continue to borrow funds in the ordinary course of its business.


Zenith Fibres Limited – Manager to the Buyback

Saffron Capital Advisors Private Limited
605, Sixth Floor, Centre Point, Andheri-Kurla Road,
J. B. Nagar, Andheri (East), Mumbai – 400 059
Tel No.: +91 22 4082 0914;
Fax No.: +91 22 4082 0999;
E-mail: [email protected];
Website: www.saffronadvisor.com;
Investor grievance Id:
[email protected];
SEBI Registration Number: INM000011211;
Contact Person: Mr. Amit Wagle / Ms. Shikha Jain

Zenith Fibres Limited – Registrar to the Buyback

Universal Capital Securities Private Limited
21/25 Shakil Niwas, Opp Satya Saibaba Temple,
Mahakali Caves Road, Andheri (East), Mumbai – 400093
Tel. No.: +91 22 28207203-05 / 28257641;
Fax No.: +91 22 28207207;
E-mail: [email protected];
Website: www.unisec.in;
SEBI Registration Number: INR000004082
Validity: Upto April 17, 2020.
Contact Person: Sunil Khade

Zenith Fibres Limited Contact Details

Company Contact Details
Zenith Fibres Limited
(Corporate Identification Number: L17120MH1989PLC054580)
Registered Office: 205, Marol Bhavan, 2nd Floor, Sir M V Road Marol, J B Nagar Post, Andheri East, Mumbai,
Maharashtra, 400059; Tel. No.: 022-28599428; Fax: 022-28599429; Email: [email protected];
Website: www.zenithfibres.com; Contact Person: Ms. Siddhi Shah, Company Secretary and Compliance Officer

 


Zenith Fibres Limited Buyback News

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


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