Orbit Exports Limited Buyback 2024

Incorporated in 1983, Orbit Exports Limited is a weaving company. Orbit has a global reach, with the company having established prolific operations in the USA, Latin America, Africa, Europe and the Far East. Orbit Exports operates across multiple verticals, from women’s apparel to Christmas crafts and home decor, with further interests in occasion-specific fabrics and finished products. In as much, the company’s products have always been, and continue to be, entirely original, concerning creativity and production.

The company exports 2 million meters of fabric every quarter. Orbit Exports is also the largest exporter of Christmas ribbons and made-up products in India. The company offers a Extensive collection of pre-made decorations, including stockings, tree skirts, and table runners.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 13 2024
Buyback Opening Date: Feb 20 2024
Buyback Closing Date: Feb 26 2024
Buyback Offer Amount: ₹ 15 Cr.
Date of Board Meeting approving the proposal: Feb 01 2024
Date of Public Announcement: Feb 01 2024
Buyback Offer Size: 2.22%
Buyback Number of Shares: 6,00,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 250 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 6,00,000 (Six Lakh) equity shares of the Company (representing 2.22% 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. 15,00,00,000 (Rupees Fifteen Crores only).

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 139 146 68 127 197
Expenses + 100 104 58 96 141
Operating Profit 38 42 11 30 56
OPM % 28% 29% 16% 24% 28%
Other Income + 5 6 4 6 5
Interest 2 2 1 2 3
Depreciation 9 12 11 12 14
Profit before tax 33 34 2 23 44
Tax % 22% 23% -17% 23% 21%
Net Profit + 26 26 2 18 34
EPS in Rs 9.11 9.59 0.87 6.5 12.75
Dividend Payout % 0% 31% 0% 0% 0%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Orbit Exports Limited in Demat or physical form as on the record date [13/02/2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [20/02/2024] by selling your shares through your broker on NSE or BSE. 3. Then on [26/02/2024], 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 800 Shares at CPM of Rs. 196 (2,00,000/250)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 156800 156800 156800 156800
No. of Shares Buyback 264 400 600 800
Buyback Profit 14256 21600 32400 43200
Profit% 9.09% 13.78% 20.66% 27.55%

30 Comments

        I tendered only 100 shares and the other 200 was sold out in between. Still loss only.

        Reply

          Certainly, sir. I appreciate your decision to sell 200 shares here instead of submitting them in the buyback (BB) process. In the previous buyback of this company, BB participants incurred losses, and it seems that the trend is continuing this time as well. Notably, sharp selling has been observed in some recent buybacks when unaccepted shares are returned to the account.

          Reply

            Thank you for your excellent understanding of the current scenario of buybacks. We have to be very careful and cautious.There are still so many manipulations and malpractices out there. Good luck to all.

            Reply

    Orbit Export Buy Back Feb 2024

    Record Date: 13/02/2024 (Tuesday)

    Promoter Participation: Yes

    Reply

    What should be Final AR here and is it good to participate?
    Hope chambal story won’t repeat

    Reply

      Buyback size in Chambal was 3.75%. Here it is 2.22%. Public shareholding in Chambal was around16.7%. Here it is around 33.8%.

      Reply

        Trinity ji, so are trying to say that we shud avoid it ?
        You gave all analysis, thank you so much for that… If you give final Verdict also , it will be certainly helpful.

        Reply

          Vivek ji,

          Everyone’s investment objective and risk tolerance is different. What makes sense for one might not make sense for someone else. Since , in my opinion, most posters on this forum are focussed more on the upside profits, I also pointed out the risks to balance that, but I cannot predict how this stock will move in the short-term. I can make It is also possible there are some mistakes or flaws in my analysis.

          There will certainly be a guaranteed profit on the accepted shares. There is a possibility of profit or loss on the unaccepted and the size of that will depend on your personal risk tolerance, among other things. For example, in the recent Elegant Marbles buyback, those who continue to hold the unaccepted shares may recover their losses in future or experience even further losses, depending on their individual decisions.

          To be clear, I am not saying everyone should avoid the buyback. It might make sense for some people and while there is a possibility of loss, there is also potential for profits.
          Please make your own decision after considering both positives and negatives or consulting your financial advisor.

          Reply

            Super, The best comment in the zone.Very clearly explained. Applicable to all cases.

            Reply

      There is never any guarantee. Public holding is very high in this stock. Also, the broker normally changes fees for buyback even if shares are not accepted. After costs, hardly anything will be left even if one share is accepted. It makes more sense in a stock like Bajaj Auto where the price difference in share price is high .

      Reply

        Vivek ji,

        Everyone’s investment objective and risk tolerance is different. What makes sense for one might not make sense for someone else. Since , in my opinion, most posters on this forum are focussed more on the upside profits, I also pointed out the risks to balance that, but I cannot predict how this stock will move in the short-term. I can make It is also possible there are some mistakes or flaws in my analysis.

        There will certainly be a guaranteed profit on the accepted shares. There is a possibility of profit or loss on the unaccepted and the size of that will depend on your personal risk tolerance, among other things. For example, in the recent Elegant Marbles buyback, those who continue to hold the unaccepted shares may recover their losses in future or experience even further losses, depending on their individual decisions.

        To be clear, I am not saying everyone should avoid the buyback. It might make sense for some people and while there is a possibility of loss, there is also potential for profits.
        Please make your own decision after considering both positives and negatives or consulting your financial advisor.

        Reply

    Orbit Export Buy back Feb 2024

    Ammount : 15 crores
    Size: 2.22 % Equity at BB price of Rs 250
    Closing rate : 193
    Buy back price : 250 (29.53% premium to closing rate of 1-2-24)

    Total Shares to be bought back: 6,00,000
    Reserved shares for Small Share holders: 90,000

    Expected MINIMUM ER: more than 7%

    Reply

      Thank you Aankit ji for the update. Certainly better than the last buyback.

      Reply

    Orbit Export buy back 2024

    Size : 15 crores
    Buy back price : 250
    Closing rate : 193

    Reply

      Not looking good after going through the last buyback details.Please wait for the outcome of the Board meeting.

      Reply

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