Bharat Electronics Limited Buy Back Offer Jan 2018

Bharat Electronics Ltd is engaged in manufacture and supply of strategic electronic products primarily to Defense Services. The Company was set up by the Government of India under the Ministry of Defence. Currently company is exporting LYNX II, radar warning receivers, composite communication system, night vision devices, versatile communication system (VCS), IFF Interrogator, LRF, X-Ray tube, radar fingerprinting system, ESM system, V/ultra high frequency (UHF) search receivers, shelters, printed circuit board (PCB) assembly, cable harness, components and mechanical assemblies.

The company operates from various manufacturing Unit at Banglore, Ghaziabad, Pune, Chennai, Panchkula, Hyderabad, Kotdwara, Machilipatnam, Taloja (Navi Mumbai).

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 09 2018
Buyback Opening Date: Mar 05 2018
Buyback Closing Date: Mar 16 2018
Buyback Offer Amount: ₹ 372 Cr
Date of Board Meeting approving the proposal: Jan 30 2018
Date of Public Announcement: Jan 30 2018
Buyback Offer Size: 5%
Buyback Number of Shares: 2.03 Cr
FV: 1
Buyback Price: ₹ 182.5 Per Equity Share

Details of Buyback:

The Board of Directors of Bharat Electronics Limited on January 30, 2018 passed a resolution to buyback Equity Shares of the Company not exceeding 2,03,97,780  fully paid-up Equity Shares of face value 1 each from all the existing shareholders / beneficial owners of Equity Shares of the Company as on Record Date, on a proportionate basis, through the “Tender Offer” process, at a price of 182.50  per Equity Share payable in cash, for an aggregate consideration not exceeding of 372,25,94,850.

Salient financial parameters:

Ratios PreBuyback* Post Buyback*
Networth  (in Lakhs) 750,854 713,628
Return on Networth (%) 20.61% 21.69%
Earnings per Share (of  1 each)@ 6.64 6.69
Book Value per Share () 33.62 32.24
P/E as per the latest audited financial results 23.55 23.37
Total Debt/Equity Ratio (Total Debt/Net worth) 0.01 0.01

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Bharat Electronics Limited in demat or physical form as on record date 09.02.2018. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [05.03.2018 to 16.03.2018] by selling your shares through your broker on NSE or BSE. 3. Then on [27.03.2018], 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:

Bharat electronics Buyback offer calculation for an investment of Rs 2,00,000 @169 per share
% Share Accepted No of Shared Accepted Gain from Buyback
33% 390 Rs 5460
50% 592 Rs 8288
75% 887 Rs 12418
100% 1183 Rs 16562

Recommendation:

IZ Rating: 3/10 Fair: 1-5 Good: 5-7 Excellent: 7-10 Final Acceptance Ratio

Registrar Contact Details:

Integrated Registry Management Services Private Limited No. 30 Ramana Residency, 4th Cross, Sampige Road, Malleswaram, Bangalore – 560003 Phone No. 91 080 2346 0815 818 Fax No. 91 080 2346 0819 Email: blr@integratedindia.in Website: www.integratedindia.in

Company Contact Details:

Bharat Electronics Limited Outer Ring Road, Nagavara, Bangalore – 560 045, Karnataka, India. Phone No. 080 25039266 Fax No. 080 25039266 Email: secretary@bel.co.in Website: www.bel-india.com

    I had 2500 shares and offered 640 shares for buy-back, but only 535 shares were accepted. Can’t figure out why were my shares left out..

    I had 4000 shares and offered 1591 SHARES AND WAS ACCEPTED BUT only for 345 it is reflected why ?