Savita Oil Technologies Limited Buyback 2024

1) Savita Oil Technologies Limited, founded on July 19, 1961, by Mr. Nandkishore Mehra and Mr. Devichand Mehra, is a leading player in the petroleum specialty industry in India. Initially started with manufacturing liquid paraffin.

2) Savita Oil Technologies Limited offers a diverse range of products across various categories, focusing primarily on petroleum specialties, lubricants, and renewable energy

3) Commissioned its first windmill, marking the company’s entry into renewable energy. Currently, Savita has over 50 MW of renewable energy capacity from windmills in Maharashtra, Karnataka, and Tamil Nadu. In 2007, Launched SAVSOL, its own brand of lubricating oils.

4) Current Operations: The company operates three major manufacturing facilities: one in Turbhe, Navi Mumbai, and two in Silvassa (Kharadpada and Silli). The Silli plant, established in 2013, is a fully automated state-of-the-art unit.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 16 2024
Buyback Opening Date: Aug 22 2024
Buyback Closing Date: Aug 28 2024
Buyback Offer Amount: ₹ 36.45 Cr.
Date of Board Meeting approving the proposal: Aug 03 2024
Date of Public Announcement: Aug 03 2024
Buyback Offer Size: 0.78%
Buyback Number of Shares: 5,40,000
FV: 2
Buyback Price: ₹ 675 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 5,40,000 (Five Lakhs Forty Thousand) equity shares of the Company (representing 0.78% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 675/- (Rupees Six Hundred Seventy Five Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 36,45,00,000/- (Rupees Thirty Six Crores Forty Five Lakhs Only).

Salient financial parameters:

Particulars (In cr)
 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 2,044 1,911 2,937 3,629 3,741
Expenses + 1,889 1,610 2,578 3,293 3,487
Operating Profit 155 300 358 336 254
OPM % 8% 16% 12% 9% 7%
Other Income + 12 32 31 23 74
Interest 20 9 19 35 38
Depreciation 22 20 21 21 23
Profit before tax 125 303 348 303 267
Tax % 23% 26% 25% 25% 24%
Net Profit + 96 224 260 226 204
EPS in Rs 13.59 31.81 37.7 32.66 29.56
Dividend Payout %
 29% 9% 13% 12% 14%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Savita Oil Technologies Limited in Demat or physical form as on the record date [16-08-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [22-08-2024] by selling your shares through your broker on NSE or BSE. 3. Then on [04-09-2024], 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 296 Shares at CPM of Rs. 628 (2,00,000/675)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 185888 185888 185888 185888
No. of Shares Buyback 97 148 222 296
Buyback Profit 4559 6956 10434 13912
Profit% 2.45% 3.74% 5.61% 7.48%

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