Akzo Nobel India Limited Buyback Apr 2018

Akzo Nobel India Limited Buyback

Akzo Nobel India Limited is leading company of paints, coatings and specialty chemicals. Well known brands like Dulux, Sikkens International and Interpon are part of AkzoNobel Group
AkzoNobel has a passion for paint. We’re experts in the proud craft of making paints and coatings, setting the standard in color and protection since 1792. Our world-class portfolio of brands – including Dulux, International, Sikkens, and Interpol – is trusted by customers around the globe. Headquartered in the Netherlands, we operate in over 80 countries and employ around 35,000 talented people who are passionate about delivering the high-performance products and services our customers expect. The sale of our Specialty Chemicals business is expected to be completed by the end of 2018

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jun 07 2018
Buyback Opening Date: Jul 06 2018
Buyback Closing Date: Jul 19 2018
Buyback Offer Amount: ₹ 235.20 Cr
Date of Board Meeting approving the proposal: Apr 06 2018
Date of Public Announcement: Apr 06 2018
Buyback Offer Size: 2.61%
Buyback Number of Shares: 11.20 Lac
FV: 10
Buyback Price: ₹ 2100 Per Equity Share

Details of Buyback:

The Company has announced the offer to Buy-back of not exceeding 1.12 million (one million and one hundred and twenty thousand) Equity Shares, representing 2.40% of the issued, subscribed and paid-up Equity Shares, from all Eligible Shareholders (Equity Shareholders as on the Record Date, being June 7, 2018) on a proportionate basis, through the ‘tender offer’ process, at a price of Rs. 2,100 (Rupees two thousand one hundred only) per Equity Share payable in cash, for an aggregate maximum amount of Rs. 2,352 million (Rupees two thousand three hundred and fifty-two million only) excluding the Transaction Costs, which represents 24.71% of the aggregate of the paid-up Equity Share capital and free reserves as per the Company’s audited financial statements, as at March 31, 2017 (the last audited financial statements available as on the date of the Board Meeting approving the Buy-back). The Buy-back Size is within the statutory limit of 25% of the aggregate of paid-up share capital and free reserves of the Company. The Buy-back would involve reservation for Small Shareholders which will be 15% of the number of Equity Shares that the Company proposes to Buy-back, or their entitlement, whichever is higher.

Salient financial parameters:

Parameters Standalone
     Pre-Buyback      Post- Buyback
(i) Net worth (in Million) 10,089 7,737
(ii) Return on Net worth (%) 23.20 30.26
(iii)Earnings Per Share 50.17 51.41
(iv) Book Value per Share 216.22 169.89
(v) P/E 38.07 37.14
(vi) Total Debt/ Equity Ratio 0.003 0.004

Source of funds for the Buyback:

The funds required for implementation of the Buy-back (including the Transaction Costs) will be sourced out of the internal accruals of the Company viz., its free reserves on account of redemption of investments made by the Company in various financial instruments including units of mutual funds. The Company will transfer from its free reserves or securities premium account a sum equal to the nominal value of the Equity Shares bought back pursuant to the Buy-back to the Capital Redemption Reserve Account and details of such transfer will be disclosed in the subsequent audited financial statements of the Company. The Company has neither raised nor does it intend to raise additional debt in connection with the Buy-back.

Shareholding Pattern Pre and Post buyback:

 Particulars        Pre-Buyback      Post- Buyback
 Equity Shares % Equity Shares %
(i) Promoters and Members of Promoter Group 34,044,335 72.96 34,044,335 74.76
(ii) Foreign Investors (including NRIs, FIIs and Foreign MFs) 829,423 1.78 11,495,979 25.24
(iii) Financial Institutions / Banks & Mutual Funds 4,187,016 8.97
(iv) Others 7,599,540 16.29
 Total 46,660,314 100.00 45,540,314 100

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Akzo Nobel India Limited Buyback in demat or physical form as on record date 07 June 2018. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [.] by selling your shares through your broker on NSE or BSE. 3. Then on [.], 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:

Akzo Nobel India Limited Buyback offer calculation for investment of Rs 2,00,000 @1900 per share
% Share Accepted No of Shared Accepted Gain from Buyback Offer
33% 35 Rs 7000
50% 52 Rs 10400
75% 79 Rs 15800
100% 105 Rs 21000

Recommendation:

Rating: 4/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Registrar Contact Details:

Bigshare Services Private Limited 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai - 400059, Maharashtra Website: www.bigshareonline.com

Company Contact Details:

Akzo Nobel India Limited Geetanjali Apartment, 1st Floor,8-B, Middleton Street, Kolkata West Bengal - 700071