Balrampur Chini Mills Ltd Buyback 2019

(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: Apr 18 2019
Buyback Opening Date: May 16 2019
Buyback Closing Date: May 31 2019
Buyback Offer Amount: ₹ 147.67 Cr
Date of Board Meeting approving the proposal: Apr 05 2019
Date of Public Announcement: Apr 05 2019
Buyback Offer Size: 3.69%
Buyback Number of Shares: 84,38,327
FV: 1
Buyback Price: ₹ 175 Per Equity Share

Details of Buyback:

The Board of Directors of the Company at its meeting held on 05.04.2019 has interalia approved a proposal to buy back up to 84,38,327 Equity Shares of the Company, being  3.69% of the total paid up equity share capital and free reserves of the Company, for an aggregate amount not exceeding Rs.147.68 Crores at Rs. 175 under the "Tender offer" route using the stock exchange mechanism. Promoters have shown interest in participating in the buyback.

Salient financial parameters:

Year Revenue(Cr) PAT(Cr) Equity(Cr) Net Worth(Cr) Debt(Cr) D/E EPS P/E
2016 2803 100 24.5 1231 1490 1.21 4.09 14.88
2017 3485 592 23.5 1541 1701 1.10 24.26
2018 4370 221 22.84 1587 890 0.56 9.41

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Balrampur Chini Mills Ltd Buyback 2019 in demat or physical form as on record date . [ 18.04.2019 ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 16.05.2019 to 31.05.2019  ] by selling your shares through your broker on NSE or BSE. 3. Then on [ 10.06.2019 ], 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 1142 Shares at CMP of Rs. 144 [2,00,000/175=1142)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,64,448 1,64,448 1,64,448 1,64,448
No. of Shares buyback 376 571 856 1142
BuyBack Profit 11656 17701 26536 35402
Profit 7.08% 10.76% 16.12% 21.52%


Review and Recommendation of Balrampur Chini Mills Ltd Buyback 2019 by IZ team is: 3/10 Fair: 1-5 Good:5-7 Excellent: 7-10 [ There is a good upside of 21% from CMP of 144. So arbitrage is good. It is looking good at CMP as it might give 10% gain before buyback the way share has shown strength in 2-3 days session. However, at this stage, the AR would be around 5-10% for retail.]

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


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