James Warren Tea Limited Buyback 2023
The company traces its legacy back to James Warren who planted his first tea estate near Dibrugarh in 1850. Properties have been added subsequently and Warren Tea Limited was acquired by Govind Ruia, a prominent businessman from Manchester (UK) in 1983. Company has recently demerged 7 high quality estates into James Warren Tea Limited. All the estates are located in the high quality belt of the South Bank in Upper Assam. All estates adhere to the strictest of EU MRL and food safety norms and are HACCP and Ethical Trade Partnership certified.
Company have approximately 9, 500 employees and are spread over 4,000 hectares of land. Its estates have the ability to produce CTC and Orthodox teas and their teas are enjoyed in India and across the globe.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jul 18 2023 |
| Buyback Opening Date: | Jul 24 2023 |
| Buyback Closing Date: | Jul 28 2023 |
| Buyback Offer Amount: | ₹ 17.50 Cr |
| Date of Board Meeting approving the proposal: | May 29 2023 |
| Date of Public Announcement: | May 29 2023 |
| Buyback Offer Size: | 15.91% |
| Buyback Number of Shares: | 7,00,000 |
| Price Type: | Tender Offer |
| FV: | 10 |
| Buyback Price: | ₹ 250 Per Equity Share |
Details of Buyback:
The proposal to buyback not exceeding 7,00,000 (Seven Lakh Only) equity shares of the Company (representing 15.91% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 250/- (Rupees Two Hundred Fifty Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 17,50,00,000/- (Rupees Seventeen Crores Fifty lakhs Only)
Salient financial parameters:
| Particulars (In Cr) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
| Sales + | 116 | 145 | 144 | 128 | 111 |
| Expenses + | 122 | 140 | 138 | 115 | 104 |
| Operating Profit | -6 | 4 | 6 | 14 | 7 |
| OPM % | -5% | 3% | 4% | 11% | 6% |
| Other Income + | 5 | 4 | 1 | 20 | 5 |
| Interest | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 3 | 3 | 3 | 3 | 3 |
| Profit before tax | -3 | 6 | 4 | 31 | 9 |
| Tax % | 27% | 28% | 29% | 6% | 12% |
| Net Profit | -3 | 4 | 3 | 29 | 8 |
| EPS in Rs | -2.72 | 4.33 | 4.31 | 55.24 | 18.75 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
How to Participate in buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of James Warren Tea Limited in Demat or physical form as on the record date [18-07-2023]
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [24-07-2023] by selling your shares through your broker on NSE or BSE.
3. Then on [04-08-2023], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account
Profit from the buyback on the bases of acceptance Ratio:
As Buyback price is less than CMP so no arbitrage is available.
39 Comments
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James warren 255, so any small remaining qty can be sold today…
Thank you Sumit ji for your prompting. I would not have participated with out your assurance of 100/percent acceptance. Now I know why SRK Ji value your opinions so much.Great going.Please continue the excellent work if you can.
Thanks Gopi ji for your kind words.
Thank you Sumit ji for your prompting. I would not have participated with out your assurance of 100/percent acceptance. Now I know why SRK Ji value your opinions so much.Great going.Please
100 percent AT DECLARED EVEN THOUGH NO PROFIT .FIRST TIME HAPPENED WITH ME
AR
I don’t think it is complete100%
My 415 is accepted out of 417 so we can say its nearly 100%
Sorry, could not understand Girish ji. I thought there is a gain of about ₹8/per share.
According to BsE bid details https://www.bseindia.com/markets/publicIssues/BSEDemandSchedule_otb.aspx?Scripcode=6215
Number of share bided in individual categaory is 178000, so does it mean AR will be nearly 60%?
As reserved shares are 15%.
Kindly share your views whether calculation is correct.
Please don’t worry about A R since you are not likely to suffer loss as it is still being traded at around the same price range which prevailed after the announcement of the Buyback. To me it is the best scenerio. Good luck to all the participants.
Does anyone know how to report buyback profit under section 10(34A) in ITR 2 for AY23-24? I tried finding but unsuccessful
As an added item under Schedule Exempt Income.
Buyback schedule released, From 24 July to 28 July. ER – 15% for small and general… Surprising….. .Still expecting 100% AR
I am not sure why anyone will invest in this share for the purpose of buyback. The current share price is around 240 and the tender price is 250 so a Rs 10 max gain i.e. 4.17% (excluding the transaction cost on buying and selling via buyback).
If the share price is 250 on the day of tender then the person will sell it in the market directly rather than going through buyback until he is making substantial profit to save some tax.
Am I missing something, Sumit?
You are right Rohit ji, but tax free 4% in 2-3 months is OK…. for me… I m sure acceptance would be nearly 100%…
I fully agree with you Sumit ji.
Got it!
18th July is decided as the record date.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/14ce6411-fccc-4b7d-9bd8-769db6ccb72f.pdf
Good to know.Thank you.
Bought 140@239.10 for approx 5% profit on 28.06.23
Any idea…..when is the record date going to be announced?
Today Bought 290 SHARES @240.55 for ~4% profit in 2 months… very defensive.. buy sure shot…
Thank you Sumit ji. You hardly go wrong
I bought 800 today @241.5, considering the fact that record date is nearing. There was some trade in this share today. It has not fallen below 239/ after the buyback announcement.Hoping to sell part before record date.
Any price at which this becomes attractive?
Buyback size is big.
I revise my rate to buy as ₹ 200/ Maximum number of shares to be 300 as risk is also high.
I am not liking it, but raising my buy rate to ₹ 240/ in view of Sumit Ji’s purchase and supporting comments
Can still buy if available @120-130/ Good luck to all the buy back friends 😁
Its funny and shocking at same time …. 250 haha… it’s bad then goldiam
I once again reiterate that purchasing shares for the purpose of the buyback before knowing the outcome of the board meeting may result in huge losses. Goldiam and James Warren Tea are examples of such.
SRK Sir, you are right, people like me jumping before the announcement and make a big loss, happened to me in Goldiam. Now I am waiting for outcome to decide and buy
How true your timely warning has proved correct in the case of Balmer Lawrie Investment Ltd. Pretty helpful and beautiful . Keep going Guru Ji 👏 If people can’t wait for the judgement of the day, It is not only because of greed, but also due to impatience. Request everyone to be vigilant and patient. Good luck 👍
Not at all surprised. There is still lots of shocking surprises to come. Just wait patiently and enjoy the fun ☺️😊. Don’t put in any money and you won’t loose anything.
The fundamentals seem to be extremely weak. Anything may happen. Please handle it with care and caution 🙏
Has anyone else fallen in to this Barren land 😊
Last Buyback at 295. Bought few at 280. Let us see how this one goes.
It goes bro for 250
Enjoyed the humour dear Neeraj ji
I think, it is going to go down 👇👇 below. God bless Gaurav ji 🙏
Any suggestions ?? Buy back price is near to LTP. Buy back size is huge, 15.91% ..
Hope it’s helpful for promotors/Big investers to offload their shares without tax..
Any other uses of this kind of buyback??
The fundamentals seem to be weak. Any thing may happen. Please be cautious 😟🙏