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.

To track the real time price of this Buyback, Click on this link – https://top10stockbroker.com/share-price/zenith-fibre-share-price/

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.


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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.


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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.


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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: buybacks@saffronadvisor.com;
Website: www.saffronadvisor.com;
Investor grievance Id:
investorgrievance@saffronadvisor.com;
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: khade@unisec.in;
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: cs.shah@zenithfibres.com;
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]


FAQs of Zenith Fibres Buyback

What is the Zenith Fibres Buyback Period?

Zenith Fibres 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. May 16, 2019. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. May 29, 2019.

What type of buyback is Zenith Fibres Buyback?

This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. 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 Zenith Fibres Buyback Offer?

Zenith Fibres Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback  5,50,000 Fully paid up Equity shares, adhering to the buyback price.

When Zenith Fibres Buyback offer will start?

As per the released schedule, the Zenith Fibres Buyback offer will start on May 16, 2019. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Zenith Fibres Buyback at all times, we ensure you have access to the right data.

When is the closing date of Zenith Fibres Buyback?

For ease in access to the dates and related aspects, we have segregated the closing date of Zenith Fibres Buyback. The buyback would close on May 29, 2019. The closing date is the last day for which the Buyback shall be open for the shareholders.

What is the offer price for Zenith Fibres Buyback?

The amount at which the shares are taken back by the company is referred to as  Zenith Fibres Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.55, the price paid to each eligible shareholder.

What is the record date for Zenith Fibres Buyback offer?

Record date of Zenith Fibres Buyback is April 12,2019. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.

What is the issue size of Zenith Fibres Buyback?

Zenith Fibres Buyback Size is Rs. 3,02,50,000/- 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 Zenith Fibres Buyback?

Objective of the Zenith Fibres 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 to Zenith Fibres Buyback offer?

The designated registrar of Zenith Fibres Buyback is Universal Capital Securities 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 to the Zenith Fibres Buyback offer?

Manager to the Zenith Fibres Buyback is Saffron Capital Advisors Private Limited. 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 Zenith Fibres buyback acceptance ratio?

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 buyback 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 Zenith Fibres 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 Zenith Fibres Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Zenith Fibres Buyback Dates.

What can be the Impact of Zenith Fibres 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. The 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 Zenith Fibres 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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