Garware Technical Fibres Buyback 2022

Garware Technical Fibres Ltd., which used to be called Garware-Wall Ropes Ltd., is one of the most important technical textiles companies in India. Since it was founded in 1976, the company has grown into a technical textiles company with many different divisions and locations. It is known for coming up with world-class solutions for high-performance aquaculture cage nets, fishing nets, sports nets, safety nets, agricultural nets, coated fabrics, polymer ropes, and geosynthetics.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 04 2022
Buyback Opening Date: Dec 05 2022
Buyback Closing Date: Dec 16 2022
Buyback Offer Amount: ₹ 90 Cr
Date of Board Meeting approving the proposal: Oct 21 2022
Date of Public Announcement: Oct 21 2022
Buyback Offer Size: 1.16%
Buyback Number of Shares: 240000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 3750 Per Equity Share

Details of Buyback:

The board of directors of Garware Technical Fibres Buyback 2022 at its meeting has approved the proposal for buyback of fully paid up equity shares of the Company having a face value of INR 10/- (“Equity Shares” and such buyback “Buyback”) from all shareholders/ beneficial owners of the Equity Shares of the Company, as on record date of 04.11.2022,  through the “tender offer” route,  at a price of INR 3750/- for an aggregate amount not exceeding INR 90 Cr/.

Salient financial parameters:

Particulars (in Cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales 846 885 1,018 953 1,035
Expenses 710 724 826 775 830
Operating Profit 136 161 192 178 204
OPM % 16% 18% 19% 19% 20%
Other Income 8 18 21 32 35
Interest 7 10 14 12 10
Depreciation 14 15 17 19 21
Profit before tax 123 153 182 179 208
Tax % 32% 31% 31% 21% 24%
Net Profit 84 105 126 141 158
EPS in Rs 38.55 48.06 57.44 64.22 76.83
 

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Garware Technical Fibres Buyback 2022 in demat or physical form as on record date on 04.11.2022 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 5-12-2022 to 16-12-2022 ] by selling your shares through your broker on NSE or BSE. 3. Then on [27-12-2022 ], 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 53 Shares at CMP of Rs. 3573 (2,00,000/3750 = 53)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 189369 189369 189369 189369
No. of Shares buyback 17 26 40 53
BuyBack Profit 3115 4720 7080 9440
Profit 1.65% 2.49% 3.74% 4.98%
 

Recommendation:

Review and Recommendation of Garware Technical Fibres Buyback 2022 from our IZ team is: 3/10 [ Size of the buyback is very small and the arbitrage is also not that much attractive ]

4 Comments

    Thanks SRK ji, but only 1.16%, too low… Would avoid as large equity with small share holder…

    Reply

    Particulars of the buyback of the shares of Garware Technical Fibres:

    Buyback Price: Rs.3750/-
    Buyback Size: 2,40,000 shares
    Buyback Mode: Tender Offer Route
    CMP: Rs. 3461.50
    Record Date: 04/11/2022

    All the best to all of you. Thank you.

    Reply

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