Avonmore Capital & Management Services Ltd Buyback 2022

The Company is registered with the Reserve Bank of India to carry on the Business of a Non-Banking Financial Institution without accepting public deposits and presently, the company is involved in NBFC activities and sub-broker advisory services.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jun 15 2022
Buyback Offer Amount: ₹ 8.72 Cr.
Date of Board Meeting approving the proposal: May 30 2022
Date of Public Announcement: May 30 2022
Buyback Number of Shares: 9,17,680
Price Type: Tender offer
FV: 10
Buyback Price: ₹ 95 Per Equity Share

Details of Buyback:

The company has approved a proposal to Buyback up to 9,17,680 equity shares (Nine Lakhs Seventeen Thousand Six Hundred Eighty Only) of the Company for an aggregate amount not exceeding Rs, 8,71,79,600/- (Rupees Eight Crores Seventy One Lakhs Seventy Nine Thousand Six Hundred only) (hereinafter referred to as the "Buyback Size"), being 9.999% and 5.641% of the total paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company year ended March 31, 2022, respectively, at a price of Rs. 95/- (Rupees Ninety Five only) per equity share (hereinafter the "Buyback Price")

Salient financial parameters:

Particulars (fig in Cr.) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 TTM
Sales 5 52 58 100 77 68 69 86
Expenses 1 47 50 68 71 60 56 61
Operating Profit 4 5 8 32 6 8 12 25
OPM % 80% 9% 14% 32% 8% 12% 18% 29%
Other Income 0 3 3 4 11 14 25 33
Interest 0 5 4 3 2 3 3 6
Depreciation 0 2 2 1 2 4 3 3
Profit before tax 3 1 5 31 13 16 32 49
Tax % 5% 91% 2% 19% 4% -11% 8%
Net Profit 7 0 6 25 10 16 22 35
EPS in Rs 2.91 0.07 2.42 10.25 4.02 6.67 8.99 14.4
Dividend Payout % 0% 0% 0% 0% 0% 0% 0%
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How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Avonmore Capital & Management Services Ltd Buyback 2022 in demat or physical form as on the record date [15.06.2022].
2. Once you have shares in demat, you can participate in the buyback process which is opening from [- to -] 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:

Buy 2105 Shares at CMP of Rs.83 ( 2,00,000/95=2105)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,99,975 1,99,975 1,99,975 1,99,975
No. of Shares buyback 694 1,052 1,578 2,105
BuyBack Profit 8,328 12,624 18,936 25,260
Profit 4.16% 6.31% 9.47% 12.63%

Recommendation:

Review and Recommendation of Avonmore Capital & Management Services Ltd Buyback 2022 from our IZ team is: 3/10

The IPO size is very small i.e. only 8 Crores. There is hardly 15% arbitrage available. Current Entitlement is just 5% as of now. 

2 Comments

    Avonmore Capital Buyback Particulars:

    Buyback size: upto 09,17,680 shares
    Buyback price : Rs. 95/-
    Buyback amount: Rs. 8.71796 Crores
    Mode : Through Tender Offer
    Record date : Yet to be announced
    CMP: Around Rs. 78/-

    Happy investing to all of you. Thank you.

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