Goldiam International Buyback 2021

They have been in this business for the last 2 decades and their business model of being an OEM to retailers globally has given their company unmatched brand equity.

Their company is listed on the Indian stock exchange and this public + private partnership is forging the company ahead on a growth trajectory. Their focus on providing a 360 degree service to major retail corporations based in USA, Europe and other countries has made them the first choice for sourcing diamond jewelry that adorns the shelves of major departmental stores. Their diamonds are sourced responsibly and their jewelry is crafted with the finest set of hands the industry has to offer.

By combining the best in CAD CAM technology, precision tooling, the finest diamonds and experienced hands, they can offer a range of designs in several product categories with one of the shortest lead times in the industry. For a retailer, this translates into an agile and nimble product line, trendy styling that is in sync with fashion trends and the best finishing on every curve, setting and contour of the piece.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 45 Cr
Date of Board Meeting approving the proposal: Jul 21 2021
Date of Public Announcement: Jul 21 2021
Buyback Offer Size: 3%
Buyback Number of Shares: 6,65,248
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 675 Per Equity Share

Details of Buyback:

At its meeting held on July 21 , 2021 the board has approved a proposal to buyback up to 6,65,248 equity shares (Six lakhs sixty five thousand two hundred forty eight only) of the Company for an aggregate amount not exceeding Rs.44,90,42,400/- (Rupees Forty four crores ninety lakhs forty two thousand four hundred only) (hereinafter referred to as the "Buyback Size"), being 3.00% of the total paid-up equity share capital and 19.05% of the total paid-up equity share capital and free reserves of the Company based on the audited standalone financial statements of the Company as on March 31, 2021, at a price of Rs. 675/- (Rupees Six hundred seventy-five only) per equity share (hereinafter the "Buyback Price" and such buyback, the "Buyback").

Salient financial parameters:

Particulars (in Cr.) Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Sales 326 308 311 435 365 406
Expenses 295 280 285 379 320 328
Operating Profit 32 28 26 56 45 78
OPM % 10% 9% 8% 13% 12% 19%
Other Income 15 8 11 18 22 23
Interest 2 3 2 3 2 0
Depreciation 3 3 3 3 2 4
Profit before tax 42 31 33 68 62 97
Tax % 21% 34% 38% 32% 27% 31%
Net Profit 32 21 20 50 47 73
EPS in Rs 13.03 8.41 8.08 21.59 21.14 33.01
Dividend Payout % 19% 24% 19% 14% 31% 24%
Source : Screener.in

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Goldiam International Buyback 2021 in demat or physical form as on record date [ Not announced ]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ Not announced ].by selling your shares through your broker on NSE or BSE. 3. Then on [ Not available ], 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 296 Shares at CMP of Rs. 580 (2,00,000/120=1666)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,71,680 1,71,680 1,71,680 1,71,680
No. of Shares buyback 98 148 222 296
BuyBack Profit 9,280 14,060 21,090 28,120
Profit 5.41% 8.19% 12.28% 16.38%

Recommendation:

Review and Recommendation of Goldiam International Buyback 2021 by IZ team is: 4/10 Fair: 1-5 Good:5-7 Excellent: 7-10 ER = 5-10%.

Registrar Contact Details:

M/s. Link Intime India Pvt. Ltd. C-101, 247 Park, L. B. S. Marg, Vikhroli (West), Mumbai - 400 083 E-mail: rnt.helpdesk@linkintime.co.in

3 Comments

Leave a Reply