BHEL Buyback 2018

Bharat Heavy Electricals Limited (BHEL) is an engineering and manufacturing company. The Company is an integrated power plant equipment manufacturer, which is engaged in the designing, engineering, manufacturing, constructing, testing, commissioning and servicing a range of products and services for various sectors, such as power, transmission, industry, transportation, renewable energy, oil and gas, and defense.

It operates in two segments: Power and Industry.

In its Industry segment, BHEL provides a portfolio of products, systems, and services for power plants, power utilities, oil and gas, metallurgical and mining, and process industries, such as cement, fertilizers, sugar, and paper.

In its Power segment, BHEL supplies steam turbines, generators, boilers and its auxiliaries approximately 1,000 Megawatt (MW); Supplies hydro turbines and generators of approximately 250MW, and Manufactures 220/235/540/550/700MW nuclear turbine generator sets.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 06 2018
Buyback Offer Amount: ₹ 1628 Cr
Date of Board Meeting approving the proposal: Oct 25 2018
Date of Public Announcement: Oct 25 2018
Buyback Offer Size: 5.16%
Buyback Number of Shares: 18,93,36,645
FV: 2
Buyback Price: ₹ 86 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 18,93,36,645 (Eighteen Crore Ninety Three Lakh Thirty Six Thousand Six Hundred and Forty Five) equity shares of face value of Rs. 2 of the Company (representing 5.16% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 86 (Rupees Eighty Six only) per equity share payable in cash for an aggregate consideration not exceeding ~1628,29,51,470 (Rupees One Thousand Six Hundred and Twenty Eight Crore Twenty Nine Lakh Fifty One Thousand Four Hundred and Seventy only)

Salient financial parameters:

Items 2018 2017 2016
Revenue 29,060.98 29,474.99 25,629.99
Other Income 693.05 726.4 1,450.08
Total Income 29,754.03 30,201.39 27,080.07
Net Profit 806.6 495.86 -913.42
Equity 734.28 489.52 489.52
EPS 2.2 2.03 -3.73
OPM % 8.16 5.01 -1.98
NPM % 2.78 1.68 -3.56

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Bharat Heavy Electricals Limited (BHEL) Buyback offer 2018 in demat or physical form as on the record date [06.11.2018] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Announced Yet] by selling your shares through your broker on NSE or BSE. 3. Then on [Not Announced Yet], 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 2325 Shares at CMP of Rs.68 [2,00,000/86=2325)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 2,00,000 2,00,000 2,00,000 2,00,000
(ii) No. of Shares buyback 767 1162 1744 2325
(iii) BuyBack Profit 13,806 20,916 31,392 41,850
(iv) Profit(%) 6.90% 10.46% 15.70% 20.93%

Recommendation:

Review and Recommendation of Bharat Heavy Electricals Limited (BHEL) offer 2018 by InvestorZone team is: 4/10 Fair: 1-5 Good:5-7 Excellent: 7-10

    *DHANUKA AGRITECH LTD* .has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 14/11/2018 To consider a *proposal of Buyback of Equity Shares of the Company*

    The Weizman Buyback just concluded has given 80k profit for 2 lakh application. For more info follow the link.

    https://investorzone.in/buyback/weizmann-forex-limited-buyback-offer-june-2018/

    The real reason was very few people were aware about the stock. Retail investors have never heard of such name as there is never a discussion of such stock in media.

    Though we were new at that time ao coudnt capitalise it.

    But now we can say with 100% Cent that such opportunities will not go unnoticed.

    The board of *Triveni Turbine* on Thursday approved a proposal for *buyback* at ₹150 a share for an aggregate amount not exceeding ₹100 crore, it said in a release to the exchanges. The buyback will be on proportionate basis and the resultant equity shares to be bought back with the maximum price is 66.66 lakh shares.

    The board of directors also noted the intention of the promoters to participate in the proposed buyback. Shares of Triveni Turbine closed at ₹102.90, up 1.03 per cent, on the BSE.

    Separately, the board of *Oriental Carbon & Chemicals* on Thursday approved a ₹35-crore buyback. It plans to buy back 3.04 lakh shares (assuming at maximum price) at a maximum price of ₹1,150 a share. Shares of Oriental Carbon closed 0.40 per cent higher at ₹1,056.85 on the BSE.

      Triveni Turbines…( Buyback at the Rs.150 upside of 47% from CMP of Rs.102)

      No. of Shares reserved for Retail Investors are = 10 lakh

      As per Annual Report, up to 31st March 2018, no. of shareholders holding 0 to 2000 Shares are close to 55 lakh and from March 2018 to Sept 2018 around 9 lakh shares are added. Therefore, we can assume that no. of shares for the retail category will be close to 65 lakh.

      So on that basis Acceptance Ratio would be 15%.

      Oriental Carbon & Chemicals…( Buyback at the Rs.1150 upside of 8% from CMP of Rs.1056)

      Not much upside and size of the buyback is also very small.

    I hope, for calculation purposes instead of considering 86 as the denominator, we need to consider 68 (cost price) for arriving correct profit (%). (Assuming, no change in the CMP till the buy back period).

      86 is used as a denominator for the purpose of safety to be eligible under Retail Category. If you buy shares worth Rs.2 Lakh by considering Share price at Rs.68 then you will not be eligible under Retail Category once price moves above 68.

      Hope You understood.

      Keep Sharing thoughts and keep Learning.

    *OFS – COALINDIA*
    Issue Date 31.10.2018 and 01.11.2018
    Exchange NSE/BSE
    Symbol COALINDIA/533278
    Bidding Through Trading CTCL Platform
    Time 9:15 AM TO 03:30 PM
    Floor Price Rs.266
    Total Shares 186222275
    Total Value 4954 Crores
    Discount 5% on Retail

    Oriental Carbon & Chemicals Ltd. – Corporate Action-Intimation of *Buy back* – meeting to be held on Thursday, 1st day of November, 2018.

    Flash NEWS: NATCO Pharma Gains 5% as Board to Consider Buyback on 5.11.2018

    BHEL has not performed well in past. The Company’s inability to diversify its business on time has made BHEL a laggard as compared to its peers. Now in future, whether BHEL able to deliver or not would be interesting to see.

    Every Investor should not buy shares just because the company is coming up with an buyback plan.

    Investors must study the company they wish to invest in and take a decision based on its ability to generate profits.

    In some rare cases, buybacks are announced to trigger certain favorable movements (anticipation of an upward movement in stock price).

    It is important to look at the size of the buyback offer, the buyback price and the duration of the offer. This is because if the buyback size is too small compared with the overall market capitalisation of the company, the impact on the stock could be very small.

    As on March 31, 2018, BHEL had Rs 11291 cr of cash & cash equivalent on its books. The Government of India holds 63.06%, while Life Insurance Corporation (LIC) holds 9.42% in the company for the same period.

    BHEL Approves Buyback up to 189.3 Million Shares and Rs. 86. 20% Premium to CMP.
    Acceptance Ratio Calculation:
    No. Of Shares Reserved for Reatil= 2.83 CR
    As per Sept 18 shareholding pattern, the number of investors having shares up to 2 Lacs of paid-up Capital is close to 15 CR.
    As per the above figure, the Acceptance Ratio would be 18%