CL Educate Limited Buyback 2023

CL Educate Ltd focuses on diverse segments of education, and caters to learners from multiple age-groups. Led by a team of highly qualified professionals, including IIT-IIM alumni, with a passion for excellence in education, CL Educate Ltd has shaped the lives and careers of innumerable students over the 25+ years of its existence.

In the past two decades, the CL brand has diversified; and has established itself as a recognized name in the education sector across a broad spectrum of segments, including test preparation and vocational training.

As of August 2021, we had 200 test-prep centres spread across 100 cities in India. As part of our global expansion, we also operate test-prep centers in the UAE.

CL Educate Ltd is committed to delivering quality education to all our students across each of the segments we are present in.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 15 Cr
Date of Board Meeting approving the proposal: Aug 02 2023
Date of Public Announcement: Aug 02 2023
Buyback Offer Size: 2.90%
Buyback Number of Shares: 15,95,744
Price Type: Open Market
FV: 5
Buyback Price: ₹ 94 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 15,95,744 (Fifteen Lakhs Ninety Five Thousand Seven Hundred Forty Four) equity shares of the Company (representing 2.90% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 94/- (Rupees Ninety Four Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 15,00,00,000(Rupees Fifteen Crore Only).

Salient financial parameters:

Particulars (in Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 339 309 182 209 291
Expenses + 312 314 193 189 266
Operating Profit 27 -5 -10 20 25
OPM % 8% -2% -6% 10% 9%
Other Income + 16 -27 10 9 6
Interest 6 8 6 4 2
Depreciation 9 14 8 8 11
Profit before tax 27 -54 -15 17 19
Tax % 25% 2% 14% 20% -20%
Net Profit + 20 -53 -13 14 23
EPS in Rs 3.52 -9.39 -2.2 2.46 4.09
Dividend Payout % 7% 0% 0% 0% 0%

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “ CL Educate” announces buyback plan of its shares up to value of Rs 94, it means that the company will be purchasing shares of " CL Educate " from the open market at a price not exceeding Rs. 94 per share. Scenario 1- If the share price is below Rs. 94 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 94, in that case, the company will put buy order at Rs. 94 only and if someone is ready to sell at that price or less then only company will get back shares.

Recommendation:

As it is an open market buyback, so no arbitrage is available.

9 Comments

    Why this is here . I mean open Market BUYBACK
    Please remove it from our list @Teaminvestorzone
    Thanks

    Reply

    Buy back inspite of such pathetic financial parameters? Very suspicious indeed.

    Reply

      Yes same I checked.
      Open market and also record date written in documents

      Reply

        Can any one please explain what is the role of record date in open markets buyback.

        Reply

          Open market buying will be only upto the record date. That’s all. Generally few months used to be there. For this one only few days! Confusing. Better to keep away. As it is the market is highly volatile.

          Reply

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