Chaman Lal Setia Exports Limited Buyback 2024

1. Business Model:

Export-Oriented: Chaman Lal Setia Exports Limited (CLSEL) primarily operates as an export-oriented company. It focuses on exporting premium quality Basmati rice to international markets, leveraging India’s reputation for high-quality rice.

2. Products and Services:

a) Basmati Rice Varieties: The company specializes in various types of Basmati rice, including Traditional Basmati, Pusa Basmati, 1121 Basmati, and other premium variants.

b) Rice-Related Products: CLSEL also offers rice-related products such as rice bran oil and other value-added products, catering to diverse consumer needs.

3. Branches and Global Reach:

CLSEL has a significant global presence, exporting to over 80 countries across North America, Europe, the Middle East, and Asia. The company operates multiple processing units and warehouses strategically located in key rice-producing regions to ensure efficient logistics and supply chain management.

4. Achievements:

The company is one of the leading exporters of Basmati rice from India, known for its commitment to quality and customer satisfaction. CLSEL has received numerous accolades for its export performance and product quality. It has been recognized by various industry bodies and export promotion councils.

5. Market Leadership:

CLSEL employs state-of-the-art processing and packaging facilities to maintain the highest standards of quality and hygiene. The company holds several international quality certifications, ensuring its products meet global standards and consumer expectations.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 19 2024
Buyback Opening Date: Aug 23 2024
Buyback Closing Date: Aug 29 2024
Buyback Offer Amount: ₹ 60.23 Cr.
Date of Board Meeting approving the proposal: Aug 06 2024
Date of Public Announcement: Aug 06 2024
Buyback Offer Size: 3.88%
Buyback Number of Shares: 20,07,930
FV: 2
Buyback Price: ₹ 300 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 20,07,930 (Twenty-Two Lakh Seven Thousand Nine Hundred and Thirty), equity shares of the Company (representing 3.88% of the total number of equity shares in the paid up share capital of the Company) at a price of Rs. 300 (Rupees Three Hundred Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 60,23,79,000/- (Rupees Sixty Crores Twenty-Three Lakhs and Seventy Nine Thousand Only).

Salient financial parameters:

Particulars (In Cr)
 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 798 851 932 1,387 1,356
Expenses + 719 734 837 1,228 1,194
Operating Profit 79 118 95 159 162
OPM % 10% 14% 10% 11% 12%
Other Income + 3 3 4 11 10
Interest 7 6 7 7 10
Depreciation 5 5 5 6 7
Profit before tax 70 110 87 157 155
Tax % 25% 25% 25% 25% 25%
Net Profit + 52 82 65 118 116
EPS in Rs 10.14 15.85 12.56 22.75 22.35
Dividend Payout %
 5% 4% 0% 4% 10%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Chaman Lal Setia Exports Limited in Demat or physical form as on the record date [19-08-2024].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [23-08-2024] by selling your shares through your broker on NSE or BSE.
3. Then on [05-09-2024], 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 666 Shares at CPM of Rs. 223 (2,00,000/300)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 148518 148518 148518 148518
No. of Shares Buyback 220 333 500 666
Buyback Profit 16940 25641 38500 51282
Profit% 11.41% 17.26% 25.92% 34.53%

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