Jai Corp Limited Buyback 2024
1. Company Overview:
Founded in 1985, Jai Corp Limited is a diversified conglomerate with business interests spanning multiple sectors, including steel, plastic processing, real estate, infrastructure, and textiles. The company is headquartered in Mumbai, India, and has evolved from a manufacturing-driven enterprise to a diversified corporate entity.
2. Products and Services:
Jai Corp operates across various industries with a wide range of products and services. It is a leading manufacturer of steel and plastic products, including woven sacks, HDPE/PP woven fabrics, and steel coils. The company also has a significant presence in the real estate and infrastructure sectors, where it engages in the development of Special Economic Zones (SEZs), urban infrastructure projects, and residential townships.
3. Business Model:
Jai Corp Limited’s business model is diversified across several industries, which allows it to mitigate risks and capitalize on growth opportunities in different sectors. The company generates revenue from its manufacturing operations, real estate developments, and infrastructure projects. Its diverse portfolio enables it to maintain a balanced revenue stream, reducing dependence on any single industry.
4. Geographical Reach and Subsidiaries:
Jai Corp has a strong presence in India, with multiple manufacturing facilities and project sites across the country. The company is involved in large-scale infrastructure projects, particularly in Maharashtra, where it is developing SEZs and other urban infrastructure. Jai Corp also has subsidiaries and joint ventures that extend its reach and capabilities in various sectors, including real estate, textiles, and plastic processing.
5. Real Estate and Infrastructure Ventures:
Jai Corp has made significant investments in the real estate and infrastructure sectors. It is a key player in the development of Special Economic Zones (SEZs) in India, including the Navi Mumbai SEZ and the Mumbai SEZ. These projects are part of the company’s strategy to participate in large-scale urban development and contribute to India’s infrastructure growth.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Sep 10 2024 |
| Buyback Opening Date: | Sep 13 2024 |
| Buyback Closing Date: | Sep 20 2024 |
| Buyback Offer Amount: | ₹ 117.77 Cr. |
| Date of Board Meeting approving the proposal: | Aug 29 2024 |
| Date of Public Announcement: | Aug 29 2024 |
| Buyback Offer Size: | 1.65% |
| Buyback Number of Shares: | 29,44,415 |
| FV: | 1 |
| Buyback Price: | ₹ 400 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In Cr) | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales + | 527 | 472 | 720 | 594 | 463 |
| Expenses + | 481 | 423 | 665 | 551 | 415 |
| Operating Profit | 45 | 48 | 55 | 44 | 48 |
| OPM % | 9% | 10% | 8% | 7% | 10% |
| Other Income + | 35 | 112 | 27 | -26 | 36 |
| Interest | 25 | 16 | 4 | 0 | 0 |
| Depreciation | 15 | 14 | 13 | 13 | 12 |
| Profit before tax | 40 | 130 | 66 | 5 | 72 |
| Tax % | 17% | 29% | 20% | 383% | 27% |
| Net Profit + | 34 | 93 | 53 | -14 | 52 |
| EPS in Rs | 1.88 | 5.19 | 2.95 | -0.76 | 2.94 |
|
Dividend Payout %
|
27% | 10% | 17% | -66% | 17% |
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 | 186000 | 186000 | 186000 | 186000 |
| No. of Shares Buyback | 165 | 250 | 375 | 500 |
| Buyback Profit | 4620 | 7000 | 10500 | 14000 |
| Profit% | 2.48% | 3.76% | 5.65% | 7.53% |
34 Comments
Leave a Reply
You must be logged in to post a comment.
Acceptance Ratio 31% for Jai Corp. May be the last buyback or insectiside if anyone has participated. The new tax has made buyback no more attractive… Thanks to all for valuable guidance 🙂
Today the stock rised 12% and crossed the BB price. experts can someone pls explain the reason behind the spike.
I am no expert. In my humble view It’s due to manipulation by vested interests
Thanks Gopi ji..
ER is 28/531 in my case. Buyback dates from 13/9/2024 to 20/9/2024. Settlement by 27/9/2024.
CMP now is more than the Buyback price. Hopefully a good deal.
AR is 163/531 in my case. One of the good buybacks.
30.7%. In the recent Buybacks, either the AR is too low or we have to dispose the unaccepted shares at a very very low price. This buyback is not that type.
Disposed all the unaccepted shares, received today, @ Rs. 382/- and earned a reasonably good profit. As I mentioned earlier, this one is one of the best for me.
Sir did u rcve the unaccpted on friday ? Coz I got my unaccepted sharez only on Saturday in zerodha.
Is it a dffrent brkr ?
Mine is ICICI DIRECT and SBI Securities.
Ok Sir
Insecticides India has also come up with buyback @₹1000/ per share and allocation is ₹50 crore only.Today’s closing price is more than 994/
Buyback ka majaak bana kar rakh diya hai
This buyback will probably get completed before Oct 1, but the window is starting to close for completing buybacks under the old regime. If the announcement of the board meeting doesn’t come by next week, it will be difficult for a company to complete the process before the deadline.
Could anyone please let me know whether Income tax exemption is available for buyback gains until September end in the hands of the assessee .
Yes. That’s why more than 20 companies have announced buyback (from last week of July i.e. after budget till now )and completing the process before 30th September.
Yes, as long as the buyback process ,including extinguishing of shares, is completed before Oct 1. The company will make it clear before the buyback as to who will bear the burden of tax.
Your mention of extinguishing is what is the real reason for my query.How do we know that?
The buyback offer document will mention the expected date for extinguishing shares and also who is supposed to pay the tax.
In my opinion, it is unlikely any company will do a buyback through tender offer in the new regime. So, when the deadline runs out, tender offer buybacks themselves will end.
A real great response, Trinity ji. Let us hope buybacks will come back with promoters not participating. Corporate Actions like buybacks , bonus issue, share split etc are also used to boost up share prices and majority share holders /promoters are the major beneficiaries.
Record date 10th August
Sorry, it is 10th September.
Buyback at ₹400 (against cmp of 392.50)
1.65% of equity .
Not surprised at all. Offer is better than my expectations. Will buy if available at a reasonable price and quit before the tender date unless the promoters participation is known as No.
Experts need your understanding, Strange thing happened today, 57 shares went for buyback of INDUS TOWERS and 43 came in my account. But there was no avg cost, It was showing as NA. Resulting in a good profit. Any idea what happened had here?
Very common.Only an issue of updating the purchase price by the Broking firms
Will be adjusted by tomorrow,if not today.
Which of the BB to be gambled upon
is there any buyback msg. in TRENT ?
Insecticides (India) Limited will consider buyback on 30 Aug
Financial parameters don’t look good. Declining/erratic sales too. Those who buy before the outcome of the Board meeting may think twice.Good luck to all.
Tomorrow can I expect 5% increase CMP price like 405 rate
Please don’t ignore the disclosure of tax payment of 383% in FY 2023 stated above.