Balrampur Chini 2021 Buyback

(i) India is the second-largest sugar producer and the largest sugar consuming country in the world. Balrampur Chini Mills Limited is one of India’s largest integrated sugar manufacturing companies.

(ii) What makes Balrampur Chini Mills Limited (BCML) special is that it is more than a sugar company.It is also engaged in the ancillary businesses of ethanol manufacture and co-generation.

(iii) The Company’s 10 factories in Uttar Pradesh possess

a)  An aggregate cane crushing capacity of 76,500 tonnes per day

b) Distilleries possessing an aggregate capacity of 360 kilolitres per day

c) The saleable co-generation capacity of 163.20 megawattsBCML is more than just another industrial entity; it is a rural prosperity driver

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 225 Cr
Date of Board Meeting approving the proposal: Aug 09 2021
Date of Public Announcement: Aug 09 2021
Price Type: Open Market
FV: 1
Buyback Price: ₹ 410 Per Equity Share

Details of Buyback:

Approved buyback of fully paid-up equity shares of face value of Re. 1/- (Rupees One only) each of the Company ("Equity Shares") at a price not exceeding Rs. 410/­ (Rupees Four Hundred Ten only) per Equity Share ("Maximum Buyback Price") and for an amount not exceeding Rs. 215.25 crores (Rupees Two Hundred Fifteen Crores Twenty Five Lakhs only) excluding any other expenses incurred or to be incurred for the Buyback like filing fees payable to SEBI, Stock Exchanges fees, advisors fees, public announcement, publication expenses, transaction cost viz., brokerage, applicable taxes such as securities transaction tax, stamp duty, buyback tax, income tax etc., and any other incidental and related expenses ("Maximum Buyback Size"), from the open market through stock exchange mechanism.

Salient financial parameters:

Particulars (in Cr) Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales 2,757 3,460 4,343 4,286 4,741 4,812
Expenses 2,346 2,561 3,891 3,597 4,059 4,098
Operating Profit 411 899 452 689 682 714
OPM % 15% 26% 10% 16% 14% 15%
Other Income -127 -4 41 50 52 47
Interest 67 55 52 41 64 39
Depreciation 110 105 95 96 101 112
Profit before tax 108 735 345 602 568 609
Tax % 7% 19% 33% 4% 9% 21%
Net Profit 100 593 232 576 519 480
EPS in Rs 4.09 25.23 10.14 25.21 23.61 22.85
Dividend Payout % 0% 14% 25% 10% 11% 11%

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Balrampur Chini 2021 Buyback ” announces buyback plan of its shares up to value of Rs 410, it means that the company will be purchasing shares of "Balrampur Chini " from the open market at a price not exceeding Rs.410 per share. Scenario 1- If the share price is below Rs. 410 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 410, in that case, the company will put buy order at Rs. 410 only and if someone is ready to sell at Rs.410 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:





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