Elegant Marbles & Grani Industries Limited Buyback 2023
Elegant is India’s number-one brand for luxury stone with more than 35 years of experience & a rich history which backs up its reputation. it has spread over 35000 square feet in Mumbai’s largest marble stockyard located in the center of what has now become the famous marble market of India. Elegant brings international brands such as Versace Ceramics and Glass2 large format glass surface to India. As India’s Premier exporter and manufacturer of Italian Marble company has a demonstrated expertise in selecting and supplying high quality materials.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Offer Amount: | ₹ 26.83 Cr |
| Date of Board Meeting approving the proposal: | Nov 11 2023 |
| Date of Public Announcement: | Nov 11 2023 |
| Buyback Offer Size: | 19.04% |
| Buyback Number of Shares: | 6,97,000 |
| Price Type: | Tender Offer |
| FV: | 10 |
| Buyback Price: | ₹ 385 Per Equity Share |
Details of Buyback:
The proposal to buyback not exceeding 6,97,000 (Six Lakh Ninety-Seven Thousand Only) equity shares of the Company (representing 19.04% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 385/- (Indian Rupees Three Hundred and Eighty-Five only) per equity share payable in cash for an aggregate consideration not exceeding 26,83,45,000 (Indian Rupees Twenty-Six Crores Eighty-Three Lakh and Forty-Five Thousand only)
Salient financial parameters:
| Particulars (In Cr) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales + | 19.66 | 10.28 | 9.26 | 27.82 | 35.65 |
| Expenses + | 18.53 | 11.58 | 12.6 | 26.33 | 31.67 |
| Operating Profit | 1.13 | -1.3 | -3.34 | 1.49 | 3.98 |
| OPM % | 5.75% | -12.65% | -36.07% | 5.36% | 11.16% |
| Other Income + | 3.05 | 2.93 | 2.69 | 1.84 | 0.54 |
| Interest | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0.28 | 0.13 | 0.13 | 0.2 | 0.3 |
| Profit before tax | 3.9 | 1.5 | -0.78 | 3.13 | 4.22 |
| Tax % | 16.15% | 1.33% | 0.00% | 14.06% | 27.96% |
| Net Profit + | 3.27 | 1.47 | -0.79 | 2.69 | 3.04 |
| EPS in Rs | 8.93 | 4.02 | -2.16 | 7.35 | 8.31 |
| Dividend Payout % | 0.00% | 0.00% | 0.00% | 37.42% | 39.73% |
How to Participate in buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of Elegant Marbles & Grani Industries Limited Buyback 2023 in Demat or physical form as on the record date [To Be Updated].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To Be Updated] by selling your shares through your broker on NSE or BSE.
3. Then on [To be Updated], 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 519 Shares at CPM of Rs. 324 (2,00,000/385)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 168156 | 168156 | 168156 | 168156 |
| No. of Shares Buyback | 171 | 259 | 389 | 519 |
| Buyback Profit | 10,431 | 15,799 | 23,729 | 31,659 |
| Profit% | 6.20% | 9.40% | 14.11% | 18.83% |
50 Comments
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Expected record date kab hai.
Acception ratio kya ho sakti hai.
🏃♀️ away please
EER showing 39% in one reputed portal .I have doubt .Will anybody confirm ?it may be typomistake
What is EER ? Which portal are you looking at ?
Expected entitlement ratio
Ipo cetral app
Friends, I am participating in TCS. Can you please suggest any other buyback that I can participate based on the current price and Acceptance Ratio.
Somany ceramics looks good to me.
Thank you Gopi.
Not participating.
Any specific reason?
Poor Quarterly results coupled with low margin, Rohit Ji. Somany has had a better result and a higher margin although size is not much.
If your query is about this one, it is due to my strong resolve to keep away from Penny stocks no matter what I possibly might have gained.
ROHIT AGARWAL , Sir your analysis is quite impressive, I’m new to stock market ,I’m seen ur comments on buyback that u just buy share for buyback and sell regardless of profit or loss , do u use option to hedge stocks or how does it really work to get out in profit .
Hope to listen from u as soon as possible 🙏
TO,
ROHIT AGARWAL
Sir your analysis is quite impressive, I’m new to stock market ,I’m seen ur comments on buyback that u just buy share for buyback and sell regardless of profit or loss , do u use option to hedge stocks or how does it really work to get out in profit .
Hope to listen from u as soon as possible 🙏
This could potentially be a trap, depending on how many retail buyback traders get involved. The total number of shares is around 35 lakhs. 15% of that is 5.25 lakhs. The condition for ER to be the same for retail and HNI is that retail investors should hold less than 15% of the total shares. So, if retail holds more than 5.25 lakh shares, ER for both retail and HNI will be 19.04%. Assuming the average retail account buys about 500 shares for the buyback play, then it requires only 1000 accounts ( some people may apply through multiple friends/family accounts) to apply in order for retail ER to become the same as HNI ER (19.04%). And if these accounts are buying for the buyback, AR will be close to ER. Hence, buyback profit could be as low as 17% * 19.04% or less than 3.5% . Potential lose from non-tendered shares could be much higher.
Please let me know what you think.
Correction: * The condition for ER to be the same for retail and HNI is that retail investors should hold MORE than 15% of the total shares.
Can you please explain what you meant by HNI and the criteria to which you are referring? As per my knowledge and experience, the reserve portion of the Small shareholder is 15% of the buyback shares or actual shares held by the small shareholders on the record date whichever is less, and small shareholder meant the shareholders who are holding shares of less than Rs 2,00,000 as on record date at the closing market price (not on the basis of the face value of the share).
By HNI, I mean those holding more shares worth more than INR 2 lakh on the record date. I am referring to the same criteria you are. The only reason that ER is usually higher for small shareholders compared to non-small shareholders is that at least 15% shares are reserved for them and their cumulative shareholding is usually smaller than 15%. If, as an example, small shareholders held 90% of total shares, then, 90% of the shares of the shares would be reserved for them and 10% for other shareholders who together hold 10%. Thus, the relative advantage in ER that small shareholders enjoy over non-small shareholders due to the minimum 15% reservation criteria would be irrelevant in this case . So, both would have the same ER, which would be equal to the percentage of shares being bought back.
Please let me know if that makes sense.
“As per my knowledge and experience, the reserve portion of the Small shareholder is 15% of the buyback shares or actual shares held by the small shareholders on the record date whichever is less,” I think you mean whichever is MORE, otherwise it would be unfair to small shareholders and their ER would always be equal to or less than( when small shareholders hold more than 15% of shares) ER of big shareholders
Thanks for correcting me. I always think it was the number of shares which is held by the small shareholder but it is not shares, it is entitlement.
Just for explaining other members of the forum (as I am also confused after reading your message)
As per the SEBI Buyback Rules – Provided that fifteen per cent of the number of securities which the company proposes to buy-back or number of securities entitled as per their shareholding, whichever is higher, shall be reserved for small shareholders.
Let’s assume 2 scenario in which small shareholders are more than 15% of the total share holders and second when they are less than 15% of total shareholders
Scenario – 1
Total shares – 100
Small shareholders – 20
Share buyback – 19 (rounded off for easy calculation)
Reserved shares will be
1. 19 (shares to be bought back) *15% = 2.4 shares
2. Actual entitlement for buyback for small shareholder = 20 (small shareholders)/100 (total shares) * 19 (shares bought back) = 3.8 shares
So, it will be 3.8 in this case.
ER of small shareholders – 19%
ER of other category – 19%
(Assuming all the shareholders will tender all the shares)
Scenario – 2
Total shares – 100
Small shareholders – 5
Share buyback – 19 (rounded off for easy calculation)
Reserved shares will be
1. 19 (shares to be bought back) *15% = 2.4 shares
2. Actual entitlement = 5 (small shareholders)/100 (total shares) * 19 (shares bought back) = 0.95 shares
So, it will be 2.4 in this case
ER of reserver category – 48%
ER of other category – 17.47%
(Assuming all the shareholders will tender all the shares)
Rohit ji can u pls elaborate how in first case er for small shareholders come out to be 19% when actual entitlement was 3.8 shares
In second scenario how it came out to be 48% where actual entitlement was 2.4 shares
Ok I got it anyways thanks for elaborating so fantastically
Rohit Ji, you have made confusion most confounding.☺️😀
I must be in deep sleep when doing this calculation. Correcting it now: –
As per the SEBI Buyback Rules – Provided that fifteen percent of the number of securities which the company proposes to buy-back or number of securities entitled as per their shareholding, whichever is higher, shall be reserved for small shareholders.
Let’s assume 2 scenarios in which small shareholders are more than 15% of the total share holders and second when they are less than 15% of total shareholders
Scenario – 1
Total shares – 100
Small shareholders – 20
Share buyback – 20
Reserved shares will be
20 (shares to be bought back) *15% = 3 shares
Actual entitlement for buyback for small shareholder = 20 (small shareholders)/100 (total shares) * 20 (shares bought back) = 4 shares
So, it will be 4 in this case.
ER of small shareholders – 20% (4/20*100)
ER of other category – 20% (16/80*100)
Scenario – 2
Total shares – 100
Small shareholders – 5
Share buyback – 20
Reserved shares will be
20 (shares to be bought back) *15% = 3 shares
Actual entitlement = 5 (small shareholders)/100 (total shares) * 20 (shares bought back) = 1 shares
So, it will be 3 in this case
ER of reserver category – 60% (3/5*100)
ER of other category – 17.89% (17/95*100)
Please correct me if you find any mistake in my calculation.
Sirji, retail have to buy 8% stake which as you say is possible.
However, 8% of buying will most probably lead to appreciation in price as seen today.
However, as a penny stock it carries big risk in any case.
Sir ji what if retail starts buying a good amount of stake
and then operators dumps the stock on retailers
This is Possible. Even in their last buyback the price crashed after Buyback. For past many months the stock price was around Rs 125. The biggest risk in this Buyback is for the unaccepted shares. There are usually no byers in this scipt so slight caution is advisable.
The stock has doubled in about 2 months. It is possible that some of the buying has already happened.
As per the current shareholding as on 30 Sep 2023, total shareholders is 1193 and 91.63% are held by promoters and shareholders holding more than Rs 2 Lakh nominal capital (as below)
Promoters – 71.71
Ssk Scripts Pvt.Ltd – 4.46
Clairvoyance Energy Private Limited – 3.04
Investor Education And Protection Fund Authority Ministry Of Corporate Affairs – 1.1
Hina Kirti Doshi – 2.05
Mita Dipak Shah – 1.18
Niraj Mansukhlal Ved – 3.01
Sangeetha S – 1.87
Sapna Niraj Ved – 3.01
Single LLP – 0.2
Total – 91.63%
Out of the remaining 8.37% shares (3,06,342) some of them are large shareholders and some of them will not tender. Even if we assume all are small shareholders and all will tender the minimum ER will be 34.12% and I am hoping it will be more than 50% this time.
As per the distribution of the shareholders for 2018-19, the small shareholders hold around 3.213% share (after the buyback). Last time the buyback premium is around 10% and ER is 40% and AR is around 88%. Also, last time, shareholder get the decent chance to move out and as the AR is 88% so I hope it will be positive return at the end.
Note – I tried to search the distribution of the sharholders but it is not available anywhere.
I do not think this will happen. Even in the case of the last buyback the number of the retail shareholder does not increased. However, it will get reduced. The total number of shareholders as in Sep 17 is 1579 (before release of buyback new) and after declaration of buyback in Nov 17, the total shareholders is 1,377 (for Dec 17 quarter) and after completion of Buyback in March 18 the total shareholders in Mar 18 is 1406 (record date is in Jan 18). So, I am very positive this buyback will get a decent gain and you may not require to tender the shares as it is quite possible that the price will hit 350-360 before buyback.
Also, keep in mind, the board has the power to increase the buyback price.
Is the offer size really 19.2%
Exactly saying it is 19.04% as per their letter addressed to the BSE
Thank you srk ji for your confirmation. Have you considered taking a position in this stock for buyback?
Placed order for purchase of 150 shares @Rs.324/-. Order wasn’t executed. I don’t want to purchase above the price n above the number. Thank you n all the best.
Able to buy 235 shares @ 324.45 as all of my remaining funds are stuck in TCS, Somany, GNFC & INSPIRISYS.
Rohit ji, the position in INSPIRISYS is for the delisting play?
Yes, I bought it around 500 shares @ 76.45 as I am still trying to learn trading in case of delisting and open offers.
Moved out from INSPIRISYS today after a decent gain of 22%. As I am still learning delisting trading so do not want to take any further risk.
Good gain sir.
I find delisting & open offers very difficult due tot the long duration for approvals.
Rohit ji where can i find list of companies that are going to be delisted.
Takeover – https://www.bseindia.com/markets/PublicIssues/FIS_Takeover.aspx
Delisting – https://www.bseindia.com/markets/PublicIssues/IPOIssues_new.aspx?id=1&Type=D
OFS – https://www.bseindia.com/markets/PublicIssues/OFSIssuse_new.aspx
OTB – https://www.bseindia.com/markets/PublicIssues/AcqIssueDetail.aspx?Type=1
You have to keep an eye on the corporate disclosure as well.
Rohit ji do you participate in right issues as well.
No, most of the time my funds will remain blocked either in buyback or IPO, and if not then delisting (occasionally). I traded 2 delisting to date. The first one is ICICI Securities (which I still hold) and the second is INSPIRISYS (no open position as of now).
I hope it is very good buyback as more than 92% is held by large shareholders so I think ER will be around 35-40%. So I am taking risk. Just remember it is penny stock
Umesh Ji*
Sumit Ji, Thanks for posting. I missed this buyback. Just bought 250 shares.
Sir your analysis is quite impressive, I’m new to stock market ,I’m seen ur comments on buyback that u just buy share for buyback and sell regardless of profit or loss , do u use option to hedge stocks or how does it really work to get out in profit .
Hope to listen from u as soon as possible 🙏
Thanks for your message. I calculate ER and AR for the purpose of buyback and if seems favourable, I enter in the trade and tender shares in buyback.