KDDL Limited Buyback 2024

Diverse Manufacturing Expertise:

KDDL Limited, initially known as Kamla Dials and Devices Limited, specializes in manufacturing watch components, high-quality precision stamped components, and progressive tools for various engineering applications. The company operates manufacturing facilities in Parwanoo (Himachal Pradesh), Derabassi (Punjab), and Bengaluru (Karnataka).

Subsidiary Ethos Limited:

KDDL owns Ethos Limited, India’s largest retail chain of luxury watches, which has significantly contributed to the company’s growth and market presence. As of 2022-23, Ethos operates 54 stores across the country.

Strategic Collaborations and Expansions:

The company has engaged in various collaborations to enhance its manufacturing capabilities, including partnerships with Tesio Precision (Taiwan) and Ageo Seimitsu (Japan). Notably, KDDL acquired the renowned Swiss watch hands manufacturing company, Esma AG, in 2019, further strengthening its global footprint.

Focused Subsidiaries and Mergers:

KDDL has effectively utilized its subsidiaries to streamline and expand its operations. Noteworthy mergers include Kamla Retail Limited, Mahen Boutiques Limited, and Satva Jewellery and Design Limited. The company has also increased its shareholding in Kamla Tesio Dials Limited (KTDL) and Pylania SA, making them wholly-owned subsidiaries.

E-Commerce and Export Initiatives:

The establishment of an E-Commerce division in Gurgaon, Haryana, has enabled KDDL to tap into the digital marketplace. Additionally, the company set up new facilities to manufacture watch hands for export to Switzerland, reinforcing its international market presence.

Future Growth Plans:

In 2022-23, KDDL initiated the process of setting up a new plant in Bengaluru (Karnataka) for manufacturing steel bracelets for watches. This expansion aligns with the company’s strategy to diversify and strengthen its product offerings in the watch component sector.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 27 2024
Buyback Opening Date: Sep 02 2024
Buyback Closing Date: Sep 06 2024
Buyback Offer Amount: ₹ 88 Cr.
Date of Board Meeting approving the proposal: Jul 09 2024
Date of Public Announcement: Jul 09 2024
Buyback Offer Size: 1.90%
Buyback Number of Shares: 2,37,837
FV: 10
Buyback Price: ₹ 3700 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 2,37,837 (Two Lakh Thirty Seven Thousand Eight Hundred Thirty Seven) equity shares of the Company (representing 1.90% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 3,700 (Rupees Thirty Seven Hundred only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 88 Crores (Rupees Eighty Eight Crores only).

Salient financial parameters:

Particulars (In cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 652 549 816 1,119 1,391
Expenses + 572 481 704 952 1,143
Operating Profit 80 68 113 168 248
OPM % 12% 12% 14% 15% 18%
Other Income + 6 19 15 20 29
Interest 33 30 30 31 26
Depreciation 48 46 45 49 65
Profit before tax 5 11 52 108 186
Tax % 139% 34% 29% 28% 26%
Net Profit + -2 7 37 77 137
EPS in Rs -0.46 4.45 25.08 42.75 81.9
Dividend Payout % -398% 31% 12% 5% 5%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of KDDL Limited in Demat or physical form as on the record date [27-08-2024].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [02-09-2024] by selling your shares through your broker on NSE or BSE.
3. Then on [13-09-2024], 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 54 Shares at CPM of Rs. 3345 (2,00,000/3700)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 180630 180630 180630 180630
No. of Shares Buyback 18 27 40 54
Buyback Profit 6390 9585 14200 19170
Profit% 3.54% 5.31% 7.86% 10.61%

15 Comments

      Is the pump and dump a member mentioned earlier is happening to this one 😄

      Reply

      At last there was a very lengthy email today from this snail🐌 like moving entity. Since I have kept just a single share I didn’t waste time reading it. Any input?

      Reply

    You are misquoting me. I didn’t say retail shareholders have 45L shares. I said public shareholders . Some public shareholders can have holdings worth more than 2L as well.

    Reply

    Less than 36K shares reserved for retail and public owns over 36% of the shares ( over 45 lakh shares). Doesn’t look very promising. What do members think ?

    Reply

      Not worth locking your money for months, you can get better returns in other stocks !

      Reply

      I would wait and see atleast until Budget time to participate. Don’t like to buy at the prevailing price for buyback.

      Reply

      Not sure where you got the idea that 36k shares is reserved for retail, and that retail investors got 45L shares. The number of retail shareholders are the number of prople holding approximately 60 shares or fewer. And if th percentage of shares held by such shareholders exceed 15% of the total shares outstanding, then that will be that percentage will be reserved for retail investors.

      Reply

      Doubtful. Shares for retails investors are around 35675. Already retail shareholders before the buyback offer were around 21000. After the offer this number will go upto 60-65 thousand. 1 share strategy may not fully work here

      Reply

    KDDL (#KDDL) Board approves share buyback:
    – Up to 2,37,837 shares at ₹3,700/share
    – Total buyback amount: ₹88Cr
    – Represents 1.90% of total equity
    – Subject to shareholder approval.

    Reply

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