TTK Prestige Limited Buyback 2024

1. Company Overview: TTK Prestige Limited is a leading kitchen and home appliances company in India, known for its innovative and high-quality products designed to enhance the cooking experience.

2. Products and Services: The company offers a wide range of kitchen appliances including pressure cookers, non-stick cookware, gas stoves, induction cooktops, mixer grinders, and other small kitchen appliances.

3. Recent Achievements: TTK Prestige has received numerous awards for its products and innovation. Recently, it has been recognized for its advanced pressure cooker technology and for launching eco-friendly products.

4. Market Reach: TTK Prestige has a strong presence in India and has expanded its footprint globally. The company’s products are available in numerous countries, making it a well-known brand in the international market.

5. Manufacturing Facilities: The company has state-of-the-art manufacturing facilities located in various parts of India, including Tamil Nadu and Uttarakhand. These facilities are equipped with advanced technology to ensure the production of high-quality and reliable kitchen appliances.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 14 2024
Buyback Opening Date: Aug 21 2024
Buyback Closing Date: Aug 27 2024
Buyback Offer Amount: ₹ 200 Cr.
Date of Board Meeting approving the proposal: Aug 02 2024
Date of Public Announcement: Aug 02 2024
Buyback Offer Size: 1.20%
Buyback Number of Shares: 16,66,667
FV: 1
Buyback Price: ₹ 1200 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 16,66,667 (Sixteen Lakhs Sixty-Six Thousand Six Hundred Sixty-Seven) equity shares of the Company (representing 1.20% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 1200 /- (Rupees One Thousand Two Hundred only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 200,00,00,000/- (Rupees Two Hundred Crores Only).

Salient financial parameters:

Particulars (In cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 2,073 2,194 2,722 2,777 2,678
Expenses + 1,807 1,872 2,296 2,416 2,374
Operating Profit 266 322 427 361 304
OPM % 13% 15% 16% 13% 11%
Other Income + 13 41 35 46 75
Interest 8 6 7 10 13
Depreciation 37 40 44 53 64
Profit before tax 234 317 411 343 301
Tax % 21% 25% 26% 26% 25%
Net Profit + 185 237 305 253 225
EPS in Rs 13.39 17.08 21.99 18.34 16.48
Dividend Payout %
 15% 29% 27% 33% 36%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of TTK Prestige Limited in Demat or physical form as on the record date [14-08-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [21-08-2024] by selling your shares through your broker on NSE or BSE. 3. Then on [03-09-2024], 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 167 Shares at CPM of Rs. 997 (2,00,000/1200)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 166499 166499 166499 166499
No. of Shares Buyback 55 83 125 167
Buyback Profit 11165 16849 25375 33901
Profit% 6.71% 10.12% 15.24% 20.36%

13 Comments

    ER : 16/175 in my case. All the best to all of you.

    Reply

      I had purchased 01 Share for Buy Back, will it be technically 100 % to be accepted in buy back as 01 share deleted from my DMAT account ??

      Reply

      Gopi ji , It is essential for the company to ensure that buyback transaction complete before the deadline to comply with the specified limits to qualify for tax-free income. I.e. 1st October!! That’s why we may see that all the current buyback will be small in size i.e. below 10% of paid up capital and free reserve , as the same will not required to comply with special resolutions and postal ballot requirements !!

      Reply

        Parikh ji that part is agreed and fine. But look at the appreciation in CMP immediately after the Board meeting outcome is known.I am a retail participant within the 20 percent tax bracket. Can afford to participate and loose money when selling the unaccepted shares? That is the problem.

        Reply

      Small size may not be worth investing. However limited exposure with buy on dips may work . No one knows A.R. and price after buyback. However,in case of price appreciation of 5-6% may be availed and book profit . Shall be grateful ,if it post 01.10.2024 scenario of buybacks can be discussed. I am bullish on top technology service companies as they are under compulsion to return capital cash to shareholders. Perhaps bonus is better than increasing dividend.

      Reply

    Buyback at 1200rs
    Size : 200cr
    No of shares : 16,66,666.
    Retail : 2,50,000

    Reply

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