Arex Industries Ltd.

1. Business Model: Arex Industries Limited operates primarily as a manufacturer and exporter, focusing on producing high-quality narrow woven fabrics and other related textile products. The company’s business model involves catering to both domestic and international markets, ensuring a diverse customer base and steady revenue streams.

2. Products and Services:

(a) Narrow Woven Fabrics: Arex Industries specializes in manufacturing narrow woven fabrics used in various industries, including apparel, automotive, and medical sectors.

(b) Elastic Tapes and Webbings: The company produces a variety of elastic tapes and webbings, catering to the specific needs of its clients.

(c) Customized Textile Solutions: Arex Industries offers customized solutions to meet the unique requirements of its clients, ensuring high levels of customer satisfaction.

3. Branches and Manufacturing Facilities: The company has state-of-the-art manufacturing facilities equipped with advanced machinery and technology, ensuring high-quality production standards. Arex Industries operates multiple branches and has a significant presence in both domestic and international markets, allowing it to serve a diverse range of clients.

4. Achievements: Arex Industries has received several accolades and recognitions for its commitment to quality and innovation in the textile industry. The company has established itself as a leading exporter of narrow woven fabrics, with a strong presence in international markets.

5. Quality and Innovation: Arex Industries is dedicated to maintaining high-quality standards across its product range. The company continually invests in research and development to innovate and improve its products, ensuring it meets the evolving needs of its customers.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Sep 07 2024
Buyback Opening Date: Sep 12 2024
Buyback Closing Date: Sep 19 2024
Buyback Offer Amount: ₹ 7.02 Cr.
Date of Board Meeting approving the proposal: Aug 06 2024
Date of Public Announcement: Aug 06 2024
Buyback Offer Size: 9.09%
Buyback Number of Shares: 3,60,000
FV: 10
Buyback Price: ₹ 195 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 3,60,000 (Three Lacs Sixty Thousand) equity shares of the Company (representing 9.09% of the total number of equity shares in the paid up share capital of the Company) at a price of Rs. 195/- (Rupees One Hundred Ninety Five only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 7,02,00,000/- (Rupees Seven Crores Two Lakhs only).

Salient financial parameters:

Particulars (in cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 47.17 40.88 53.75 45.02 51.01
Expenses + 37.89 34.02 42.53 38.2 41.92
Operating Profit 9.28 6.86 11.22 6.82 9.09
OPM % 19.67% 16.78% 20.87% 15.15% 17.82%
Other Income + 0.15 0.08 0.04 0.23 0.09
Interest 3.13 2.98 2.11 1.81 1.33
Depreciation 4.85 4.76 4.49 4.23 4.16
Profit before tax 1.45 -0.8 4.66 1.01 3.69
Tax % 38.62% 25.00% 20.60% 30.69% 31.17%
Net Profit + 0.88 -1 3.7 0.7 2.54
EPS in Rs 2.22 -2.53 9.35 1.77 6.42
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 Arex Industries Ltd. in Demat or physical form as on the record date [07-09-2024].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [12-09-2024] by selling your shares through your broker on NSE or BSE.
3. Then on [26-09-2024], 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 1025 Shares at CPM of Rs. 181 (2,00,000/195)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 185525 185525 185525 185525
No. of Shares Buyback 338 512 769 1025
Buyback Profit 4732 7168 10766 14350
Profit% 2.55% 3.86% 5.80% 7.73%

4 Comments

    Arex industries buyback

    Price – 195
    Shares – 3,60,000
    Size : 7.02cr

    Equity : 9.09%

    special resolution required.

    Very poor financial parameters.Hitting upper circuit every day?!

        What an apt phrase! Love it👌. Nearing buyback price and may cross the line before due date and God knows what there after…

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