Garware Technical Fibres Limited Buyback 2024

Established in 1976, Garware Technical Fibres Ltd. (Formerly Garware-Wall Ropes Ltd.) is one of India’s leading players in the technical textiles sector. The company has a global presence with customers spread across 75 countries. The company offers solutions for Fisheries, Aquaculture, Shipping, Yarns & Thread, Sports, Coated fabric, agriculture and Geosynthetics.

The company is a multi-divisional, multi-geographical technical textiles company and is known for providing world-class innovative solutions in 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: Mar 12 2024
Buyback Opening Date: Mar 18 2024
Buyback Closing Date: Mar 25 2024
Buyback Offer Amount: ₹ 199.50 Cr
Date of Board Meeting approving the proposal: Jan 29 2024
Date of Public Announcement: Jan 29 2024
Buyback Offer Size: 2.58%
Buyback Number of Shares: 5,25,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 3800 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 5,25,000 (Five Lakh Twenty-Five Thousand) equity shares of the Company (representing 2.58% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 3800/- (Rupees Three Thousand Eight Hundred only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 199,50,00,000 (Rupees One Hundred Ninety Nine Crores Fifty Lakhs only).

Salient financial parameters:

Particulars (In Cr)
Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 1,018 953 1,035 1,189 1,306
Expenses + 826 775 830 966 1,076
Operating Profit 192 178 204 223 230
OPM % 19% 19% 20% 19% 18%
Other Income + 21 32 35 25 28
Interest 14 12 10 11 12
Depreciation 17 19 21 21 22
Profit before tax 182 179 208 216 223
Tax % 31% 21% 24% 24% 23%
Net Profit + 126 141 158 165 172
EPS in Rs 57.44 64.22 76.83 79.92 84.5
Dividend Payout %
9% 26% 3% 9% 4%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  Garware Technical Fibres Limited in Demat or physical form as on the record date [12-03-2024]. 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 52 Shares at CPM of Rs. 3660 (2,00,000/3800)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 190320 190320 190320 190320
No. of Shares Buyback 17 26 39 52
Buyback Profit 2380 3640 5460 7280
Profit% 1.25% 1.91% 2.87% 3.83%

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