Birlasoft Ltd Buyback 2022
Birlasoft combines the power of industry knowledge, enterprise solution and digital technologies to reimagine business processes for customers and their ecosystem. Its consultative and design thinking approach helps customers understand the value and outcome of the services being provided coupled with a transparent operating model. As part of The CK Birla Group, Birlasoft comprising of over 10,000 plus professionals, is committed to continuing its 158-year heritage of building sustainable communities.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jul 15 2022 |
| Buyback Opening Date: | Aug 11 2022 |
| Buyback Closing Date: | Aug 26 2022 |
| Buyback Offer Amount: | ₹ 390 Cr. |
| Date of Board Meeting approving the proposal: | May 27 2022 |
| Date of Public Announcement: | May 27 2022 |
| Buyback Offer Size: | 24.97% |
| Buyback Number of Shares: | 78,00,000 |
| Price Type: | Tender offer |
| FV: | 2 |
| Buyback Price: | ₹ 500 Per Equity Share |
Details of Buyback:
The Company is is seeking approval of its shareholders by way of Special Resolution for buyback of up to 7,800,000 fully paid-up equity shares of face value of INR 2/- each ("Equity Shares") representing up to 2.79% of the total number of equity shares in the paid-up share capital of the Company, at a price of INR 500/- per Equity Share payable in cash, for an aggregate amount not exceeding INR 3,900 million/- (excluding transaction costs, applicable taxes and other incidental and related expenses) through the "tender offer" route as prescribed under the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as approved by the Board of Directors of the Company at its meeting held on Monday, May 23, 2022 and as set out in the Notice of Postal Ballot dated Friday, May 27, 2022 ("Notice"), by way of Postal Ballot by voting through electronic means only ("e-voting"/ "remote e-voting").
Salient financial parameters:
| Particulars | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 | Mar-21 | Mar-22 |
| Sales | 3,224 | 3,320 | 2,250 | 2,551 | 3,291 | 3,556 | 4,130 |
| Expenses | 2,790 | 2,971 | 1,967 | 2,244 | 2,899 | 3,026 | 3,490 |
| Operating Profit | 435 | 349 | 283 | 306 | 392 | 529 | 640 |
| OPM % | 13% | 10% | 13% | 12% | 12% | 15% | 16% |
| Other Income | 16 | 47 | 87 | 100 | 43 | 19 | 66 |
| Interest | 17 | 14 | 8 | 11 | 16 | 13 | 13 |
| Depreciation | 69 | 83 | 40 | 50 | 83 | 80 | 77 |
| Profit before tax | 365 | 299 | 322 | 346 | 336 | 455 | 617 |
| Tax % | 23% | 20% | 21% | 16% | 33% | 29% | 25% |
| Net Profit | 281 | 239 | 253 | 289 | 224 | 321 | 464 |
| EPS in Rs | 14.22 | 12.08 | 12.8 | 10.56 | 8.11 | 11.57 | 16.59 |
| Dividend Payout % | 15% | 17% | 18% | 19% | 25% | 30% | 18% |
How to Participate in buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of Birlasoft Ltd Buyback 2022 in demat or physical form as on the record date [15-07-2022].
2. Once you have shares in demat, you can participate in the buyback process which is opening from [11- 08 - 2022 to 26-08-2022] by selling your shares through your broker on NSE or BSE.
3. Then on [07-09-2022], 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 400 Shares at CMP of Rs.372 ( 2,00,000/500=400)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,48,800 | 1,48,800 | 1,48,800 | 1,48,800 |
| No. of Shares buyback | 132 | 200 | 300 | 400 |
| BuyBack Profit | 16,896 | 25,600 | 38,400 | 51,200 |
| Profit | 11.35% | 17.20% | 25.81% | 34.41% |
Recommendation:
Review and Recommendation of Birla Soft Ltd Buyback 2022 from our IZ team is: 5/10
[ The IPO size decent and good arbitrage of 34% is available in the buyback. Current Entitlement is 3% ]
63 Comments
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Poll : Ary you going to sell remaining shares tomorrow ?
I am not.
Yes all shares. Because in 90% case it down 3-5% after buyback
Settlement date revised to 02/9/2022.
Approx 19 percent for retail acceptance
Thank you very much for your kind consideration to help the readers
AR 97/510 in my case. Thank you.
Yes sir
Both categories will be same approximately 10-12%
408%
174% Subscribe already
Fingers crossed
1 week to go
All the best to all 🙏
200% & So far
4 days to go
Gear up 269%
3 days to go
408%
Top gear
2 to go
Any guess about AR
695% 1 to go
On observing the bidding particulars till date, I understand that the AR may be around 12% only against the Retail Category.
845.95%
Retail general both seems 8-10% around
On NSE not showing bidding info.
On BSE this showing is final figures?
Mohsin Bro, BSE data final figure is including nse data.
Oh ok.
Waiting for acceptance ratio details.
Applied around 6000 shares. Lets see.
Whats your prediction?
Same as yours. 8-10%
General has 6600000 lakh shares reserved and all over bid received 6 cr shares. So can we assume that minimum 10% atleast confirm in general?
Cant say 100% confirm bcz
May some share holders applied their half holding or just Entitled share as mail received.
How to Check buy back tender status on BSE
https://www.bseindia.com/markets/publicIssues/ACQDisp.aspx?id=532400&type=OTB&idtype=1&status=L&IPONo=5845&startdt=11/08/2022
Mohsin Patel ji,
Thank you very much for sharing the details of the site in connection with the bidding particulars of the buyback of the shares of Birlasoft. May I request you to share the details in this regard in respect of Matrimony? Thank you in anticipation of your kind response.
https://www.bseindia.com/markets/publicIssues/ACQDisp.aspx?id=540704&IPONo=5825&type=OTB&idtype=1&status=L&startdt=26/07/2022
Thank you very much for your prompt response. Can you please share the bidding particulars in respect of the individual investors as the above site is giving the total bids. Thank you in anticipation of your response.
https://www.bseindia.com/markets/publicIssues/BSEDemandSchedule_otb.aspx?Scripcode=5845
https://www.bseindia.com/markets/publicIssues/BSEDemandSchedule_OTB.aspx?Scripcode=5825
Thank you very much for your consideration to share the information.
Birlasoft buyback
*Reserved Category*
26 Equity Shares out of every 557
*General Category*
26 Equity Shares out of every 557
*Note*
those Small Shareholders who hold 21 or
less Equity Shares as on Record Date, will be dispatched a Tender Form with zero Entitlement.
Such Small Shareholders are entitled to tender Additional Equity Shares as part of the Buyback
Offer and will be given preference in the acceptance of one Equity Share, if such Small
Shareholders have tendered Additional Equity Share
Expected Acceptance Ratio In General Category?
What will the AR any calculations ?
Dividend Amount Received Today
ER for general category is excluding promoter who are not participating??
Seems like this is without consideration of promoter is not participating, As ER is same for both category if they have excluded promoters from buyback than this will not be the case.
19.5.4 Based on the above definition, there are 355,076 Small Shareholders with aggregate
shareholding of 25,326,147 Equity Shares, as on the Record Date, which constitutes
9.04% of the outstanding number of Equity Shares of the Company and 324.69% of
the maximum number of Equity Shares which are proposed to be bought back as
part of this Buyback. 141,773,490 Equity Shares were held by the other Eligible
Shareholders in the General Category (excluding the Promoter Group entities) as on
the Record Date
ER 4.66% for General Category comes out with calculation excluding promoters holding.
19.5.6 Based on the above analysis and in accordance with Regulation 6 of the Buyback
Regulations, 1,182,193 Equity Shares have been reserved for the Small Shareholders
(“Reserved Category”) and accordingly, the General Category for all other Eligible
Shareholders shall consist of 6,617,807 Equity Shares (“General Category”).
Thanks for your response
Birlasoft
ER Retails : 4.66%
ER General : 4.66%
Open : 11 August
Close : 26 August
Expected AR in BirlaSoft Buyback 2022?
May be 25 % in general category lets finger crossed.
If price will increase even around 375-400 then it will much beneficiary for both category.
Retail Category ER – 3 – 4% around
General Category ER – 6-7 % around
Retail or General? Which one prefer to apply?
I have the same thought. Is it better to apply in two accounts as retail(<2L) or 1 account with 5L?
I think it's better to apply in general category. Experts your opinion pls.
in retail acceptance ratio looks better than general, in general it might be around 8% and in retail expecting more than 15%.
As promoters are not participating in this Buyback.
General Category acceptance ratio may be better thn reserved category.
Record date 15 July of bsoft buyback eligibility
Experts,
Why birla soft equity and july future price wide difference like 8-9rs.
As promoters are not participating in this byback, so whether it will benefit to only general category or reserve category also? Kindly explain.
Sir,
When promoters are not participating in the buyback, it will benefit to the general category only. Promoters being the major stakeholders will be considered under the General Category.
Firm Entiletlement Ratio is around 7% in General Category if it converts to 20 to 30% AR than its a good deal
What about reserve category?
As Promoters are not participating AR may be high in General Category Compare to Retail Category
Would you please help in explaining this…
With promoters not participating, how it would benefit more in General Category than Retail Category. TIA
Mostly promoters are having shares of value more than 2 lac on record date .
Those who are having shares costing more than 2 lac comes in general category.
So when promoters wilmot participates then general category application will be get reduced
Due to reductions in numbers of general category other general categories shareholder will be get benefitted. Please go through youtube videos also get understand it with betterway