Coral India Finance & Housing Limited Buyback 2020

(i) Coral India Finance and Housing Limited is one of the Housing Development Company in India with two segments viz. Finance & Construction. Coral India Finance and Housing Limited is a public listed Housing Development company in India with shares traded on the BSE & NSE Stock Exchanges. Coral India Finance and Housing Limited group have developed projects spread across commercial complexes, residential developments. It has several ongoing projects. Each project bears a stamp of thoughtful solutions and the highest quality. The company has specialists from India working on various aspects including design, landscaping, engineering and structural strength of each of the developments.

(ii) The Company was incorporated on 4th Day of January 1995 with the name of “Coral India Finance and Housing Limited.“. The Company was incorporated with the objects to provide all types of Financial Services including bill discounting, Raising & placement of funds, placement of securities, advising on investments of funds, financial consultants, project counseling& advisory services, etc., and to carry on business as Builders, Developers, Contractors for all types of construction work, including land and property development and Real estate dealers.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 21.08 Cr
Date of Board Meeting approving the proposal: Feb 14 2020
Date of Public Announcement: Feb 14 2020
Buyback Offer Size: 24.86%
Buyback Number of Shares: 1,24,00,000
Price Type: Tender Offer
FV: 2
Buyback Price: ₹ 17 Per Equity Share

Details of Buyback:

The buy-back of up to 1,24,00,000 fully paid equity shares of the face value of Rs. 2/- each at a price of up to INR 17 per share aggregating up to INR 21.08 Crores which represents 24.86% of the paid-up equity share capital and free reserves of the Company through " Tender Route".

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Coral India Finance & Housing Limited Buyback 2020 in demat or physical form as on record date on [ Not Announced ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ Not Announced ] by selling your shares through your broker on NSE or BSE. 3. Then on [ Not Announced ], the settlement will be done for accepted shares and unaccepted shares will be returned to your demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 11764 Shares at CMP of Rs.13.77 ( 2,00,000/17=11764)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 161990 161990 161990 161990
No. of Shares buyback 3882 5882 8823 11764
BuyBack Profit 12,539 18,999 28,498 37,998
Profit 7.74% 11.73% 17.59% 23.46%

Recommendation:

Review and Recommendation of from our side is Coral India Finance & Housing Limited Buyback 2020 : Rating: 4/10

    Dec-19 results announced today, which looks quite good.

    1. Revenue growth of 26% in the first 9MFY20 as compared to the same period in the previous year.

    2. PAT growth of 50% in the first 9MFY20 as compared to the same period in the previous year.

    3. 9MFY20 EPS is 1.88.

    The current arbitrage available for investment in buyback is 23%.

    So risk-taker investors may look this buyback opportunity.