VLS Finance Limited Buyback 2024
1. Business Model: VLS Finance Limited operates as a non-banking financial company (NBFC) in India, focusing on providing a wide range of financial services to individuals and businesses. The company emphasizes secure and transparent financial solutions tailored to meet the diverse needs of its clients.
2. Products and Services: The company offers various financial products, including loans, investment advisory services, wealth management, and portfolio management. VLS Finance Limited is known for its customer-centric approach, providing customized financial solutions to its clients.
3. Branches: VLS Finance Limited operates through a network of branches strategically located across major cities in India. This widespread presence enables the company to effectively serve its growing customer base.
4. Achievements: The company has consistently delivered strong financial performance, marked by steady growth in its loan portfolio and customer base. It has received recognition for its innovative financial solutions and commitment to customer satisfaction.
5. Customer Focus: VLS Finance Limited prioritizes building long-term relationships with its clients by offering personalized financial services and maintaining high standards of transparency and ethics in all its operations.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Aug 26 2024 |
| Buyback Opening Date: | Aug 30 2024 |
| Buyback Closing Date: | Sep 05 2024 |
| Buyback Offer Amount: | ₹ 125.40 Cr |
| Date of Board Meeting approving the proposal: | Aug 09 2024 |
| Date of Public Announcement: | Aug 09 2024 |
| Buyback Offer Size: | 9.48% |
| Buyback Number of Shares: | 33,00,000 |
| FV: | 10 |
| Buyback Price: | ₹ 380 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In Cr) | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales + | 36 | 222 | 232 | 84 | 407 |
| Expenses + | 39 | 14 | 21 | 22 | 26 |
| Operating Profit | -4 | 209 | 212 | 62 | 381 |
| OPM % | -10% | 94% | 91% | 74% | 94% |
| Other Income + | 0 | 0 | 0 | 0 | 11 |
| Interest | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 1 | 1 | 1 | 4 | 6 |
| Profit before tax | -5 | 208 | 210 | 58 | 386 |
| Tax % | -914% | -7% | 0% | 4% | 16% |
| Net Profit + | 39 | 221 | 210 | 56 | 324 |
| EPS in Rs | 10.15 | 57.25 | 54.37 | 14.48 | 93.21 |
| Dividend Payout % | 15% | 3% | 3% | 0% | 3% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 173580 | 173580 | 173580 | 173580 |
| No. of Shares Buyback | 173 | 263 | 394 | 526 |
| Buyback Profit | 8650 | 13150 | 19700 | 26300 |
| Profit% | 4.98% | 7.58% | 11.35% | 15.15% |
27 Comments
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AR is 100 %. Money credited to the bank 2 days back. However, the irony is that the CMP is above the buyback price. Maybe it will settle down to the 300 range long term averages
Finally I got clean bowled once again, of course on the verge of a triple century
Yes Gopiji, I have not seen anything like this in the recent past. Today the prices went more than 430. Think there is lot of strength and underlying value in the scrip. I think the promotors were trying to cheat the retail investors by offering a low price. But market is smarter. I believe the buyback had failed, collected less than 25%
I don’t know whether to laugh 😂 or cry😭. No need for both. Contented is the correct thing to feel 👌
Entitlement :
Reserved : 71 out of 368 (19.29%)
General : 71 out of 368 (19.29%)
Mohsin, You are on the dot. How could you do it so close. Lovely 🙂
Never seen exactly same E R for both category. I wonder whether it is properly calculated. I admire the accuracy of your prediction, Mohsin ji.Continue to miss old Experts.
Morning Gopiji. Yes cals are fine. I checked the offer letter and verified the calcs.
Thanks.
Just calculated ER on Share holding pattern. As promoter not participate. Easy to calculate. I surely knows Retail and General ER come Equal.
Book value good. Bullish on this stock.
Thanks a lot to Mohsin ji and Thangam ji for the prompt response. Today the Share touched its buyback price and I sold my holdings except 80 nos and have no hope of being able to buy before the tender date at around 370/even. Will be thankful if any knowledgeable member can let me know whether Tax exemption is available for buyback gains until September end.
The counter is very strong. Not sure if it will fall to 370. Buyback alreday open. Price has crossed even the buyback price. wonder why??
Please see the OPM which is 94% for last year.Never seen anything anywhere near anytime! Reluctantly sold all the holidays today near 390/ Will buy again if falls below 380.
Your price is approaching. Today is the last day, Still subscription is very low, just 13%. Maybe buyback will fail
Tax exemption on buyback gains till September end.
From 1st October we need to pay tax on buybacks.
Thank you Mohsin ji for the confirmation.
Because promoters are not participant
Expected ER 18-19%
Almost touched buy back price today. Expecting near 100% AR.
Gopi, 100% to me is bit doubtful, as there are too many small share holders. Anyways, not much benefit as the price is as good as the buyback. Better to sell in the market as you can be assured of 100% 🙂
Thank you dear.Good to know that you are still around.I remembering your comments on Sinclair buyback days.Infact I sold 350 out of my 530 holding.I will buy again if price falls below 363 or so which might happen only if there is a correction in the market it seems.
Thanks Gopi. ER is 19.3% See Mohsin’s post today.
Yeah price can fall to 360 levels shortly in my opinion. Anyway wait for couple of days.
already at 360, no benefit now
No use as the as the price is as good as the buyback. Better to sell in the market
Any suggestions for this buyback?
Is it pump and dump company?
Don’t think so.With such beautiful financial features and more than 9 percent buy back size, this looks great for me to participate. I am in.
Not just in, going to dive in to this with family 😉