Care Ratings Ltd. Buyback 2022

CareEdge Ratings (CARE Ratings Ltd) commenced operations in April 1993 and in almost 3 decades has established itself as one of the leading credit rating agencies in India.

CareEdge Ratings has emerged as the leading agency for covering many rating segments including manufacturing, infrastructure, financial sector including banks, non-financial services, among others. The company has an established track record of rating companies over almost three decades and has had a pivotal role to play in developing bank debt and capital market instruments including CPs, corporate bonds and debentures, and structured credit.

CareEdge is recognized for being a knowledge-based group and provides near real-time research on all domestic and global economic developments. Special studies and surveys are also undertaken on different subjects. The Industry Research team tracks and publishes sector reports on an on-going basis.

CareEdge Ratings’ (CARE Ratings Ltd.) wholly-owned subsidiaries include CARE Advisory, Research & Training Ltd. and CARE Risk Solutions Pvt Ltd.

In the global arena CARE Ratings Ltd. is a partner in ARC Ratings, an international credit rating agency. The company also has subsidiaries in Mauritius ‘CareEdge Ratings (Africa) Private Limited (CRAF)’ and in Nepal ‘CareEdge Ratings Nepal’. The company has a strategic alliance with Japan Credit Ratings Agency (JCR) and MoU with Russian rating agency ACRA.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Sep 14 2022
Buyback Offer Amount: ₹ 121
Date of Board Meeting approving the proposal: Jul 20 2022
Date of Public Announcement: Jul 20 2022
Buyback Offer Size: 7.99%
Buyback Number of Shares: 23,68,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 515 Per Equity Share

Details of Buyback:

CARE Ratings Limited at its meeting held on July 20, 2022 has approved a proposal to buy-back ("Buy-back") of up to 23,68,000 fully paid-up equity shares of face value of 10/-(representing 7.99% of the total issued and paid-up equity share capital of the Company) at a price of~ 515/- (Rupees Five Hundred Fifteen only) per Equity Share (the "Buy-back Offer Price'') payable in cash for an aggregate amount not exceeding ~ 121 Crores via tender route.

Salient financial parameters:

Particulars( Cr.) Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 180 203 236 261 279 287 333 319 244 248 248
Expenses 56 68 88 101 105 105 122 144 162 153 168
Operating Profit 123 135 148 160 174 182 211 175 81 96 80
OPM % 69% 66% 63% 61% 62% 63% 63% 55% 33% 39% 32%
Other Income 28 29 36 44 9 34 25 30 31 31 27
Interest 0 0 0 1 0 0 0 0 1 1 0
Depreciation 2 3 3 5 4 3 3 3 8 8 8
Profit before tax 150 160 181 197 178 212 233 202 104 119 99
Tax % 28% 29% 28% 30% 33% 31% 30% 32% 20% 23% 22%
Net Profit 108 114 129 138 120 148 162 137 82 90 75
EPS in Rs 37.69 39.78 44.63 47.53 40.68 50.13 55.13 46.66 27.96 30.39 25.34
Dividend Payout % 27% 50% 63% 166% 69% 56% 100% 64% 70% 56% 39%
Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of CARE BUYBACK 2022 in Demat or physical form as on the record date [14.09.2022]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE. 3. Then on [To be updated], 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 388 Shares at CMP of Rs. 450[2,00,000/515)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,74,600 1,74,600 1,74,600 1,74,600
No. of Shares buyback 128 194 291 388
BuyBack Profit 8320 12610 18915 25220
Profit (%) 4.7% 7.2% 10.8% 14.4%

2 Comments

    Any recommendation from the experts….if this buyback should be considered…what would be the good entry point from buyback perspective

    Reply

    Buyback : Tender type
    Price : 515rs
    No of Shares : 23,68,000 /-
    Size : 121.95cr

    Reply

Leave a Reply