DCM Shriram Limited BuyBack 2018

(i) DCM Shriram Limited is a leading business conglomerate with a group turnover of Rs. 7,063 crores. The business portfolio of DCM Shriram comprises primarily of:

(a) Agri-Rural Business: Urea & SSP fertilizers, Sugar, Farm inputs marketing such as DAP, Crop care Chemicals, Hybrid Seeds

(b) Chlor-Vinyl Business: Caustic Soda, Chlorine, Calcium Carbide, PVC resins, PVC Compounds, Power and Cement.

(c) Value-added business: Fenesta Building Systems- UPVC Windows & Doors

(ii) DCM Shriram, a spin-off from trifurcation of the reputed erstwhile DCM Group in 1990, is managed by Mr. Ajay S. Shriram, Chairman & Senior Managing Director, Mr. Vikram S. Shriram, Vice Chairman & Managing Director and Mr. Ajit. S. Shriram, Joint Managing Director along with a highly professional executive team.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Record Date: Jul 04 2018
Buyback Opening Date: Jul 04 2018
Buyback Closing Date: Oct 26 2018
Buyback Offer Amount: ₹ 250 Cr
Date of Board Meeting approving the proposal: Jun 18 2018
Date of Public Announcement: Jun 27 2018
Buyback Offer Size: 8.37%
Buyback Number of Shares: 55,55,555
FV: 2
Buyback Price: ₹ 450 Per Equity Share
Letter for Offer Link

Details of Buyback:

1. The Board of Directors of DCM Shriram Limited, at its meeting held on 18.6.2018, have approved the buyback of fully paid up Equity Shares of face value of Rs.2/- each ("Equity Shares" and such buyback, the "Buyback"), for an aggregate amount not exceeding Rs. 250 Crores (Rupees Two Hundred and Fifty Crores only) at a price not exceeding Rs. 450 (Rupees Four Hundred and Fifty Only) per Equity Share payable in cash ("Maximum Buyback Price") from the open market through stock exchange mechanism. 2. The Maximum Buyback Size represents 8.16% and 8.37% of the aggregate of the Company's paid-up Equity Share capital and free reserves based on the standalone and consolidated audited financial statements of the Company respectively, as at March 31, 2018. 3. At the Maximum Buyback Price and for Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 55,55,555 (Fifty-Five Lakhs Fifty Five Thousand Five Hundred and Fifty-Five Only) Equity Shares ("Maximum Buyback Shares") (comprising 3.42% of the existing paid up Equity Share capital)

Profit from the buyback on the bases of acceptance Ratio:

DCM Shriram Limited BuyBack is an Open Market BuyBack In this method of share buyback, the company buys its own stocks from the market. This transaction happens through company’s brokers. This repurchase program happens for an extended period of time as a large block of shares needs to be bought. The company is under no obligation to conduct the repurchase program after the announcement. The company has the option to cancel it. Also, it can make changes in the repurchase program according to company’s situations and needs. If this method is effectively implemented, it can prove to be very cost effective.

Recommendation:

Review and Recommendation of DCM Shriram Limited BuyBack 2018 from InvestorZone Team is: Rating: Avoid DCM Shriram Limited BuyBack shares on the open market over an extended period of time.

Company Contact Details:

DCM Shriram Limited 1st.Floor,Kanchenjunga Building, 16 Barakhamba Road, New Delh1=110001, India Phone No. +9 111 23316601 Fax: +9111 23316072 E-mail: response@dcmshriram.com website:www.dcmshriram.com

1 Comment

    It is an open market offer. So no point of even looking at such buybacks.

    Reply

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