Balrampur Chini Buyback 2020

(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: Tender Offer
Buyback Record Date: Jul 03 2020
Buyback Opening Date: Jul 20 2020
Buyback Closing Date: Jul 31 2020
Buyback Offer Amount: ₹ 180
Date of Board Meeting approving the proposal: Jun 23 2020
Date of Public Announcement: Jun 23 2020
Buyback Offer Size: 7.79%
Buyback Number of Shares: 10000000
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 180 Per Equity Share

Details of Buyback:

The Board of Directors of the Company at its meeting held on 23.06.2020 has interalia approved a proposal to buy back up to 1,00,00,000 Equity Shares of the Company, being  7.79% of the total paid-up equity share capital and free reserves of the Company, for an aggregate amount not exceeding Rs.180 Crores at Rs. 180 under the "Tender offer" route using the stock exchange mechanism.

Salient financial parameters:

Particulars( Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Sales 2,987 2,757 3,460 4,343 4,286
Expenses 2,861 2,346 2,561 3,891 3,597
Operating Profit 126 411 899 452 689
OPM % 4% 15% 26% 10% 16%
Other Income 15 -127 -4 41 50
Interest 102 67 55 52 41
Depreciation 116 110 105 95 96
Profit before tax -76 108 735 345 602
Tax % 24% 7% 19% 33% 4%
Net Profit -58 100 593 232 576
EPS in Rs 0 4.09 24.49 10.14 25.21
Dividend Payout % 0% 0% 14% 25% 10%
Source: Screener.in

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Balrampur Chini Mills Ltd Buyback 2020 in demat or physical form as on record date [ 03.07.2020 ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 20.07.2020 to 31.07.2020 ] by selling your shares through your broker on NSE or BSE. 3. Then on [ 18.08.2020 ], 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 1111 Shares at CMP of Rs. 135 [2,00,000/180=1111)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,52,222 1,52,222 1,52,222 1,52,222
No. of Shares buyback 366 555 833 1111
BuyBack Profit 15738 23865 35819 47773
Profit 10.34% 15.68% 23.53% 31.38%

Recommendation:

Review and Recommendation of Balrampur Chini Mills Ltd Buyback 2020 by IZ team is: 3/10 Fair: 1-5 Good:5-7 Excellent: 7-10 [ There is a good upside of 25% from CMP of 135. So arbitrage is good. ] 2019 Buyback Final AR Analysis

Company Contact Details:

Registered Office: "FMC Fortuna", 2nd floor, 234/3A, A. J. C. Bose Road, Kolkata - 700020 CIN: L15421WB1975PLC030118 T: +91 33 2287 4749 F: +91 33 2287 3083

    51/300; in my ICICI account showing 51 shares soldb on 4th Aug and money I am going to get on 6th. Remaining shares still in blocked condition, not released yet. FYI only.

    Any one know subscription details. Earlier years, some or the other person used to post subscription details.
    Now a days many details are showing n covered here.
    Any reason for not sharing.

      No such reason like that .
      Total & Final Subscription:- 7.2x
      Offer Size:- 10000000
      Demat Shares Tendered:-71111753 (confirmed)
      Physical Shares Tendered:- 654 (Yet to be confirmed)

    Dear Sir/ Madam,

    My name is Kumar C and i was having 3000 shares in my Demat account on record Date of 3-July-2020,

    But till now i did not received any mail confirmation or any communication to my address Regarding Buy Back,

    Please confirm whether i’m eligible to Participate in Buy back or not, if Eligible how much shares eligible for buy back out of 3000 shares.

    Holding 200 shares and added another 100 (purchased) 100 shares on 1st July. Where can I check I am eligible or not to participate in but back.
    I haven’t receive any email, please help me.

      July 3rd was the record date bro. That means you should have held shares of balrampur chini in demat account on That day.

      download from this link with your DP ID :- karisma(dot)kfintech(dot)com/buybackoffer(dot)aspx

    The worst buyback entitlement (44/600)…get ready for an even worse AR…CMP is also very low .So, exiting without an loss for the returned shares will be an issue for those who bought only for buyback within the range of 130-135…

      About 20,000 people bought this share only for tendering in buyback. Acceptance may not go beyond 30%. Also, a price correction might happen as more people buy for buyback acceptance ratio reduces for everyone.

    Buyback is opening on 20.07.2020 and closing on 31.07.2020