GHCL Limited Buyback 2020

(i) GHCL Limited is engaged in the business of manufacturing and trading of inorganic chemicals, home textiles, and wind power generation.

(ii) The Company’s segments include Inorganic Chemicals, Textiles, and Others. The Company’s geographical segments include India and the Rest of the world.

(iii) In Chemicals, the Company manufactures Soda Ash (Anhydrous Sodium Carbonate) that is used as a raw material for detergents and glass industries, and sodium bicarbonate (baking soda).

(iv) Its Textile operations include spinning of fiber, weaving, dyeing, and printing till the finished products, such as sheets and duvets, which are primarily exported across the world.

(v) The Company is also engaged in the salt business. It produces edible and industrial grade salt. It is involved in cotton fabrics and furnishing, and cotton yarn business. The Company’s subsidiary is Grace Home Fashion, LLC, which is engaged in the home textile segment and caters to home-textile retailers.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 60
Date of Board Meeting approving the proposal: Jan 23 2020
Date of Public Announcement: Jan 23 2020
Buyback Offer Size: 3.26%
Buyback Number of Shares: 32,00,000
Price Type: Open Market
FV: 10
Buyback Price: ₹ 250 Per Equity Share

Details of Buyback:

Buy-Back of the Company’s fully paid-up equity shares of Rs. 10/- each from the *Open Market* through Stock Exchange route, at a Maximum Buyback Price of Rs. 250/- (Rupees Two Hundred and Fifty) per Equity Share.

Salient financial parameters:

Particulars(Crs) 2019 2018 2017 2016 2015
Revenue 3,371.18 2,956.52 2,969.39 2,558.99 2,373.61
Other Income 13.54 35.75 10.78 3.95 11.26
Total Income 3,384.72 2,992.27 2,980.17 2,562.94 2,384.87
Expenditure 2,727.32 2,467.26 2,392.55 1,941.15 1,878.63
OPM % 19.5 17.76 19.79 24.3 21.33
Net Profit 361.03 364.51 386.77 257.78 184.31
NPM % 10.71 12.33 13.03 10.07 7.76
Equity 98.03 97.42 99.47 100.02 100.02
EPS 36.88 37.32 38.82 25.77 18.43
Source: BSE

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “GHCL Limited” announces the buyback plan of its shares up to the price of Rs 250, it means that the company will be purchasing shares of "GHCL Limited" from the open market at a price not exceeding Rs.250 per share. Scenario 1- If the share price is below Rs.250 in that case, the company will put buy orders at the current market price and purchase shares. Scenario 2- If the share price is above Rs. 250, in that case, the company will put buy order at Rs. 250 only and if someone is ready to sell at Rs.250 or less then the only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA

Recommendation:

[ As it is the Open-Market Buyback, so no arbitrage for the investors. ]

2 Comments

    *GHCL Limited*

    *Buy-Back*

    Buy Back of the Company’s fully paid-up equity shares of Rs. 10/- each from the *Open Market* through Stock Exchange route, at a Maximum Buyback Price of Rs. 250/- (Rupees Two Hundred and Fifty) per Equity Share

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