SM Auto Stamping Ltd

SM Auto Stamping Limited (SM), an IATF 16949:2016 certified group has been one of the leading manufacturers of precision sheet metal stamping and deep drawn components (welded assemblies & press tools) required for automobile & engineering sector since 1995. It specializes in design of complex sheet metal pressed components, design and manufacturing of high quality stamping dies, welding fixtures, high tonnage stamped components and welded assemblies for vehicles (LCV, SUV) and tractors.

Company have in-house tool design, development and manufacturing facility. It supplies components to TS 16949 certified clients. Company have Four production centers with current production capacity 6 million components per year in Nashik, Maharashtra which is around 160 km from Mumbai and 180 km from Pune and have a workforce of 350 direct and indirect employees in 4 locations in Nashik and Sinnar, Maharashtra.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 3.6 Cr
Date of Board Meeting approving the proposal: Nov 06 2023
Date of Public Announcement: Nov 06 2023
Buyback Offer Size: 4.19%
Buyback Number of Shares: 6,00,000
Price Type: Tender Offer
Buyback Price: ₹ 60 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 6,00,000 (Six Lakh) equity shares of the Company (representing 4.19% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 60/- (Rupees Sixty) per equity share payable in cash for an aggregate consideration not exceeding Rs. 3,60,00,000 (Rupees Three Crore Sixty Lakh Only).

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 58.13 44.27 38.93 54.33 68.66
Expenses + 53.96 45.47 37.65 49.52 63.27
Operating Profit 4.17 -1.2 1.28 4.81 5.39
OPM % 7.17% -2.71% 3.29% 8.85% 7.85%
Other Income + 0.76 0.12 1.14 0.86 1.54
Interest 1.36 1.28 1.91 1.32 1.27
Depreciation 1.2 0.67 1.14 1.15 1.21
Profit before tax 2.37 -3.03 -0.63 3.2 4.45
Tax % 25.74% 29.70% -169.84% -13.75% 30.56%
Net Profit + 2.26 -1.96 -1.65 3.79 3.32
EPS in Rs 17.3 -1.37 -1.15 2.65 2.32
Dividend Payout % 0.00% 0.00% 0.00% 0.00% 0.00%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  SM Auto Stamping Limited in Demat or physical form as on the record date [To Be Updated].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To Be Updated] by selling your shares through your broker on NSE or BSE.
3. Then on [To be Updated], 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:

Buy 3333 Shares at CPM of Rs. 45 (2,00,000/60)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,49,985 1,49,985 1,49,985 1,49,985
No. of Shares Buyback 1100 1666 2500 3333
Buyback Profit 16,500 24,990 37,500 49,995
Profit% 11.00% 16.66% 25.00% 33.33%

16 Comments

    Letter of Offer says that those who tender may be left with shares less than a tradeable lot. Pretty Interesting 🙂

    Reply

    Only 20 lots of 4000 would be taken in this Buyback. Be cautious and careful as there is a possibility that many more people are chasing this stock.

    Reply

      150 lots of 4000 each will be accepted. Participants may kindly share their experiences for educational purposes since I have not come across SME share buyback so far.

      Reply

    I request all the experts in this panel to give their view so that we can understand the process of buyback in SME stocks as it is traded in the lot of 4000

    Reply

    Hello IZ experts

    Can you please advise how buyback for SME takes place?
    As they trade in minimum lot so I assume the buyback will be done in minimum lot?
    So buyback in retail will be lottery and not proportionate?

    Hope for your kind advise.

    Reply

    SM Auto is a SME stock and trade in lot size of 4000.
    Can anyone guide how buyback happens in this as if some shares are accepted in buyback what we will do with the remaining shares. Is there any retail quota exist in iit.

    Reply

      It is not for me or you. Let the existing share holders worry about it. Namaste

      Reply

        I request all the experts in this panel to give their view so that we can understand the process of buyback in SME stocks

        Reply

    As minimum size of purchase is 4000 share.
    Buyback price is Rs 60 per share. Buyback will be done on the multiple of 4000 or any no.
    What will be criteria of small stack holder as 4000*60—240000

    Reply

    Buyback announced.

    6,00,000 shares at 60rs price.

    3.6cr buyback.

    Tender route

    Reply

        This SME Stock can be traded only in minimum lot size of 4000. Hence, classified as High Risk…

        Reply

    Not reviewed as do not have any free funds. All funds are used in TCS, GNFC and Somany.

    Reply

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