Suprajit Engineering Limited Buyback 2024

1. About: Established in 1985, Suprajit Engineering Limited is one of India’s leading manufacturers of automotive cables and halogen lamps. The company has grown to become a key supplier in the automotive industry, both domestically and internationally.

2. Products and Services: Suprajit specializes in the production of a wide range of automotive cables, such as throttle, clutch, brake, and speedometer cables. Additionally, the company manufactures halogen lamps and non-automotive cables for various industries, including agriculture, construction, and power equipment.

3. Business Model: Suprajit Engineering operates on a diversified business model, catering to multiple segments within the automotive industry, including two-wheelers, passenger vehicles, commercial vehicles, and aftermarket services. The company’s emphasis on quality, cost efficiency, and customer satisfaction has allowed it to establish long-term relationships with major OEMs (Original Equipment Manufacturers) globally.

4. Global Reach: Suprajit has a significant international presence, exporting its products to more than 50 countries. The company has established itself as a preferred supplier to many global automotive giants, ensuring a strong foothold in both emerging and mature markets.

5. Subsidiaries and Manufacturing Facilities: Suprajit Engineering has multiple subsidiaries, including Phoenix Lamps, Wescon Controls, and Trifa Lamps. The company operates over 20 manufacturing facilities spread across India, the United Kingdom, and the United States, which enable it to meet the diverse needs of its global customer base effectively.

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: ₹ 112.50 Cr.
Date of Board Meeting approving the proposal: Aug 14 2024
Date of Public Announcement: Aug 14 2024
Buyback Offer Size: 1.08%
Buyback Number of Shares: 15,00,000
FV: 1
Buyback Price: ₹ 750 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 15,00,000 (Fifteen Lakh) equity shares of the Company (representing 1.08% of the total number of equity shares in the paid up share capital of the Company) at a price of  Rs. 750/-(Rupees Seven Hundred Fifty only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 112,50,00,000/- (Rupees One Hundred Twelve Crore and Fifty Lakh Only).

Salient financial parameters:

Particulars (In Cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 1,563 1,641 1,840 2,752 2,896
Expenses + 1,344 1,404 1,580 2,439 2,573
Operating Profit 219 237 260 313 323
OPM % 14% 14% 14% 11% 11%
Other Income + -5 34 48 38 60
Interest 23 19 15 36 51
Depreciation 58 57 59 95 104
Profit before tax 133 194 235 220 228
Tax % 22% 27% 26% 31% 27%
Net Profit + 104 143 173 152 167
EPS in Rs 7.43 10.2 12.51 10.99 12.08
Dividend Payout % 24% 17% 16% 21% 21%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Suprajit Engineering 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 266 Shares at CPM of Rs. 568 (2,00,000/750)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 151088 151088 151088 151088
No. of Shares Buyback 88 133 199 266
Buyback Profit 16016 24206 36218 48412
Profit% 10.60% 16.02% 23.97% 32.04%

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