Arnold Holdings Ltd. Buyback 2023

Arnold Holdings Limited is an India-based non-banking finance company. The Company is primarily focused in providing inter corporate loans, personal loans, loans against shares and securities, loans against properties, trade financing, bills discounting, trading in shares and securities. The Company offers financial services to commercial, industrial and financial clients. The Company’s products and services include trade finance and bill discounting, working capital loans, loan against property, margin funding and loan against approved securities, capital market, corporate finance, mortgage and loans, and infrastructure finance. It provides finance for investments in the primary and the secondary market. It provides customized financing solutions to small and medium-sized enterprises (SMEs), mid-corporate and large corporate clients, to meet their working capital and growth finance needs. It offers online purchase loans, consumer durable loans and personal loans.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jan 25 2024
Buyback Opening Date: Feb 01 2024
Buyback Closing Date: Feb 07 2024
Buyback Offer Amount: ₹ 13.23 Cr
Date of Board Meeting approving the proposal: Dec 21 2023
Date of Public Announcement: Dec 21 2023
Buyback Offer Size: 20.95%
Buyback Number of Shares: 63,00,000
Price Type: Tender Offer
Buyback Price: ₹ 21 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 63,00,000 (Sixty Three Lakhs) equity shares of the Company (representing 20.95% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 21/- (Indian Rupees Twenty-One Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 13,23,00,000/- (Indian Rupees Thirteen Crores Twenty-Three Lakh Only),

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 16 24 37 119 163
Expenses + 16 22 36 111 152
Operating Profit 1 2 1 8 11
OPM % 5% 9% 2% 7% 7%
Other Income + 0 0 0 0 2
Interest 0 0 0 6 7
Depreciation 0 0 0 0 1
Profit before tax 0 2 1 2 5
Tax % 30% 26% 27% 28% 24%
Net Profit + 0 2 1 2 4
EPS in Rs 0.09 0.52 0.23 0.5 1.27
Dividend Payout % 0% 0% 0% 0% 0%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  Arnold Holdings in Demat or physical form as on the record date [25-01-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [01-02-2024] by selling your shares through your broker on NSE or BSE. 3. Then on [21-02-2024], 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:

As Buyback price is less than or almost same as CMP, so no arbitrage is available.


    After 5th Jan, this share has become rocket and reached till 37 also. Which is much higher than than buyback price.
    Nobody will participate in buyback. My understanding is wrong here ?

    If retail holdings are 84 percent, certainly not a good one to participate. I withdraw my comments with due apology.

    Can someone confirm, Existing shareholders means they will decide record date earlier than Dec 21st right?

      No,not at all that way. Existing share holders in this case means those who have had shares bought below the buyback price earlier.The price fixed cleverly by the Board of Directors is less than the current market price which itself looks suspicious and managed ,if not manipulated. It is going to be a good buyback if you are able to buy below the buyback price as the percentage is substantial.


        I couldn’t understand

        (1) Why this buy back should be good, if someone purchased shares @ say Rs 17 or 18 or any price below buy back price ?

        (2) Which percentage is substantial ?

          The buyback size which is 20.95% is substantial. I have never, to the best of my memory come across such a huge size . Normally such size will bring 100% AR for retail investors. Here the market price will probably remain at buyback price or above through out the process so that the existing share holders take everything away. Incase it falls to the level below the buyback price, what will happen is left for you to guess….


            Agreed that buy back size of 20% is good , but here Retail holding is around 84%

            Still you feel that AR can be around 100% ?

    Arnold : Buy back Announced

    63 lakh shares @ Rs 21 (total Rs 13.23 crores)

    Market price closing today : 21.39

      Lol, I had bought 1 share for 20.00 just to track it, but I will lose more than that in fees if I tender it.

      Why to get rid of incase if you bought it below the buyback price? Please don’t sell it in a hurry.

    (1)Debt / Equity is 1.23
    (2)No dividend payout in last so many yrs
    (3) 7 cr is paid as interest out of 11 cr operating profit
    (4) Promoter holding only 16% equity , rest by public

    Logically speaking, Instead of buy back, company can return debt or reward shareholders with dividend (if extra cash is available)

    To me, it looks like way to offload operator’s shares to common public in name of buy back

    After announcement of buy back, they will never declare record date etc & will distribute shares in next 2 or 3 months.

    If lucky, investor may earn positional trading profit after buy back announcement

      Very good explanation about financial conditions of company. Keep it up .thanks

      Debt is high because it is it’s business model borrow funds and lend to it’s customers, similar to bank model or nbfc

    Financial improving year to year and once buyback approved it will be rocket similar to Rajoo engineers

      Any Idea about this. Why do you think they should not go with buyback. I mean is something suspicious about this? I have some positions.

        It is another financially and fundamentally weak penny stock which has gone up more than 36% in few weeks. What goes up fast is likely to fall faster and heavily. I won’t participate in this one, certainly not.

Leave a Reply