DB Corp Limited Buyback May 2018

(i) D. B. Corp Ltd. (DBCL) is India’s Largest Newspaper Group. It also enjoys a significant presence in the radio and digital space. The Group is expanding its presence across India’s most attractive consumer markets, the Tier II and Tier III cities. With a vast presence in 13 states, D. B. Corp Ltd. holds a strong leadership position in most of the markets where it operates. The Company continues to create value for its stakeholders with a consistent track record of growth and value creation.

(ii) D. B. Corp Ltd. is India’s largest newspaper Group with 65 editions published in 4 languages and an average daily readership of ~44 mn readers across 13 states. With a diverse portfolio of newspapers, online offerings and a strong presence in the radio business, the Group reflects the pulse of Tier II and Tier III cities of India.

(iii) The Group provides best-in-class products and offers advertisers immense opportunities to capture the untapped potential that these emerging cities offer.
a) Radio 94.3 MY FM is the largest radio network catering to the Tier II and Tier III cities of India. Established in the year 2006, the network has expanded rapidly to seven states and has a strong presence in 30 cities. 94.3 MY FM caters to the local flavor of the markets and aims at becoming the voice of its listeners.
b) Digital DB Digital has 13 portals which provide content across varied genres. It also offers tailored content relevant for the Tier II and Tier III cities of India in four languages.
c)Smart Infotainment Dainik Bhaskar and Divya Bhaskar mobile application provide users with a rich collection of information and entertainment.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jul 18 2018
Buyback Opening Date: Aug 07 2018
Buyback Closing Date: Aug 23 2018
Buyback Offer Amount: ₹ 312.8 Cr
Date of Board Meeting approving the proposal: May 27 2018
Date of Public Announcement: Jun 27 2018
Buyback Offer Size: 5%
Buyback Number of Shares: 92,00,000
FV: 10
Buyback Price: ₹ 340 Per Equity Share

Details of Buyback:

Approved buyback proposal for purchase by the Company of its own fully paid equity shares of Rs.I0/- each ("Equity Share") not exceeding 92,00,000 Equity Shares (being 5% of the total paid-up equity capital of the Company) at a price of Rs.340/- (RupeesThree Hundred Forty only) per Equity Share, for an aggregate amount of up to Rs.312.80 Crore (RupeesThree Hundred Twelve Crore Eighty Lakh Only).

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of DB Corp Limited Buyback in demat or physical form as on record date 18 July 2018. 2. Once you have shares in demat, you can participate in the buyback process which is opening from 07.08.2018 to 23.08.2018[ both days exclusive] by selling your shares through your broker on NSE or BSE. 3. Then on 03.09.2018 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:

DB Corp Limited Buyback offer calculation for investment of Rs 2,00,000 @ 265 per share
% Share Accepted No of Shared Accepted Gain from Buyback Offer
33% 248 Rs 18600
50% 377 Rs 28275
75% 566 Rs  42450
100% 754 Rs 56550

Recommendation:

Review and Recommendation of DB Corp Limited BuyBack from Investorzone team is: 4/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Company Contact Details:

DB Corp Limited Plot no. 280, Sarkhej Gandhi Nagar Highway, Near. YMCA Club, Makarba, Ahmedabad - 380051, Gujarat. Phone No. +91-79-39888850, Fax: +91-79-39814001

    As per sources final Acceptance ratio is 43%. Though confirmation will come on SEBI website after 03.09.2018.

    Final Tender Shares as on closing date 23.08.2018
    QIB- 1,89,80,439
    HNI-58,34,432
    RII-46,61,934

    Buyback opening from tomorrow and will close on 23.08.2018.

    I see this company buys back every year recently.. what’s the general acceptance rate of db corp buy back ? Or what’s the expected buy back acceptance rate as entitlement is around 29%

      I think 45-50% will be tendered. Let us see how it goes.

    Update by Company on 31.07.2018 in BSE
    This is to inform you that the company has received SEBI observations on the draft Letter of
    An offer filed with SEBI for the proposed Buyback Offer of the Company. Now, we are in the
    process of finalizing the Letter of Offer and the same would be sent to the shareholders as
    per regulatory timelines.

    DB corp original buyback entitlement – 29.3 % ( Reserved category)

    Final can be somewhere more than 50%