Goldiam International Limited 2023
Goldiam International Limited (NSE: GOLDIAM, BSE: 526729) is a 3‐decade old exporter of exquisitely designed and luxurious diamond jewellery. Functioning as the manufacturer of choice to many of the leading global branded retailers, departmental stores and wholesalers across American and European markets, the Company is also renowned for utilizing responsibly sourced diamonds, leveraging cutting edge technologies and efficient manufacturing processes for optimal costings and short delivery leadtimes. Targeting the mid‐to‐affordable diamond & bridal jewellery segments, Goldiam has a dedicated sales office in New York, with design teams in both India and the USA.
Today, Goldiam is at an inflection point, where we are witnessing the effects of our proactive business strategies in terms of venturing into lab‐grown diamonds and various digital initiatives. These will be the company’s foundation for exponential growth.
Further, they have maintained their net‐debt free position with their prudence. Going forward, Goldiam aims for a brighter future with resolute commitment and a strong foundation.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jul 21 2023 |
| Buyback Opening Date: | Jul 27 2023 |
| Buyback Closing Date: | Aug 02 2023 |
| Buyback Offer Amount: | ₹ 32.69 Cr |
| Date of Board Meeting approving the proposal: | May 20 2023 |
| Date of Public Announcement: | May 20 2023 |
| Buyback Offer Size: | 2% |
| Buyback Number of Shares: | 21,79,493 |
| Price Type: | Tender Offer |
| FV: | 2 |
| Buyback Price: | ₹ 150 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In Cr) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
| Sales | 311 | 435 | 365 | 406 | 688 |
| Expenses | 285 | 379 | 320 | 328 | 558 |
| Operating Profit | 26 | 56 | 45 | 78 | 130 |
| OPM % | 8% | 13% | 12% | 19% | 19% |
| Other Income | 11 | 18 | 22 | 23 | 25 |
| Interest | 2 | 3 | 2 | 1 | 1 |
| Depreciation | 3 | 3 | 2 | 4 | 5 |
| Profit before tax | 33 | 68 | 62 | 97 | 149 |
| Tax % | 38% | 32% | 27% | 31% | 29% |
| Net Profit | 20 | 46 | 45 | 67 | 106 |
| EPS in Rs | 1.62 | 4.32 | 4.23 | 5.5 | 9.65 |
| Dividend Payout % | 19% | 14% | 31% | 29% | 12% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,91,952 | 1,91,952 | 1,91,952 | 1,91,952 |
| No. of Shares Buyback | 440 | 667 | 1000 | 1333 |
| Buyback Profit | 2,640 | 4,002 | 6,000 | 7,998 |
| Profit% | 1.38% | 2.08% | 3.12% | 4.17% |
Recommendation:
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283/1525 and 279/1500. AR is around 18.5% only as I feared in my comment dated 26/7/2023. It’s not a surprise to me.
I fervently hope that you have bought at around 126/ only and may be in gain over all. Diamonds and gold are for the ladies. I will try to keep away from both (gold and diamonds) except in the form of Gold bonds .
Average cost price is Rs.138.55. Definitely, it will be a loss. Of course, already prepared for.
Good to see the upward movement in this script. Better however is the fact that you have factored in this catastrophe and were well prepared. I am now relieved
How to get allotment information today all shares debit in CSDL
Contract note from your broker is the source of the information. Initially, all the shares will be debited and subsequently, the unaccepted shares will be credited back to your d mat account. All the best.
18 out of 100 are accepted
My Prediction for AR in Retail Category Would be Around 30-40%
Basis of This Calculation is as below
Total Reserve Share for Retail is 326924
Total Bid Submitted :- 5886 assume 95% pertail to Retail share holder i.e. Apx 5600 out of 5916.
Total Avg share per Share holder :- 200 Share per shareholder
Total Share tender by retail shareholder is = 5600*200=11200000 Apx
AR = 326924/112000000=29% Apx
Hence AR would be in the range of 30-40%
AS PER MY CALCULATION ACCEPTANCE RATIO WILL BE CLOSE TO 19%. WILL BE VERY HAPPY IF ACCEPTANCE RATIO GOES BEYOND 25%
Hi learner,
Total tendered shares 3.29 times only..
That’s mean 30% shares will be accepted averagely..
So expect around 15-20% for General
40-60% for Retailers..
Yes, Ravindira is correct. The subscription is only 3.29 times (which includes the promoters as well).
Minimum AR – 30.36%
Minimum AR assuming Promoters tenders maximum shares – 36%
Optimistic AR – 50% or more
First in my life that AR is in reserve category is 18.90% and in general category it is 34.24%. Not in loss finally. Make a profit of Rs 8000 on 2400 shares (in 2 accounts) in total much less than what I expected along with a valuable lesson that AR may be lower in reserve category as compared to general category.
How it come to mere 18.5 percent while as expected min 30 percentage.
It means general categories AR may be more than 30.
Disclaimer : Due to miscalculation and higher expectations I am on the loss side.
Good assessment.
A good assessment by Learner
THANKS SIVARAMAKRISHNA JI. HOPING PRICE RECOVERS IN SECONDARY MARKET
Apply today for a tender offer. Hope to see a good AR as the offer is subscribed only 228% as of now.
Gopi, Siva, Sumit, anyone is tendering shares?
or I am the only one in Goldiam?
I also tendered . Actually i bought 2666 shares from 2 accounts (1333 each ) at avg price of 130. I tendered all my shares .
I also have already tendered 1525 shares in one account and 1500 shares in the other account.
Thanks all for replying.
Yes dear, as a committed and compulsive participant , I bought 200 nos of this one again and have tendered. Hope to be able to gain only. Regretting for not buying more.
Yesterday I also tender my share. Hope AR would be more than 50%
Goldiam International Ltd – Buyback
open date : 27-07-23
close date : 02-08-23
Last date for payment consideration : 09-08-23
Entitlement : Reserved : 17 out of 584 (2.92%)
General : 5 out of 264 (1.89%)
Umesh ji,
I fear that the AR may not be more than 20%. Have you analysed in this regard? What is your view? Thank you very much for your inputs.
283/1525 and 279/1500. AR around 18.5% only as I feared. It’s not a surprise to me.
Dear sir, Suppose I have 300 no of stock of goldiama international limited. As per mail it has been confirmed that my entitlement for buy back is 8. As per my knowledge final acceptance ratio will be decided as per bid applied for buy back. I want to know that final acceptance ratio depends on bid applied . For example the final acceptance ratio for above buyback is 25 percent and I have total no of equity on record date is 300. If I applied 300 equity my no of equity taken during buy back will be 75. I want to know that if, I apply only 200 equity during buyback than no of equity taken during buyback will be 50 or 75. please confirm it.
50 nos.being 25% of 200/ tendered shares only.
ER for Small Shareholders – 17 Equity Shares out of every 584 fully paid-up Equity Shares held on the Record Date.
Buyback Opening Date Thursday July 27, 2023
Buyback Closing Date Wednesday August 2, 2023
Have taken a decent position for buyback.
buyback price will change it goes from Rs. 150 to expected price Rs. 200 as per buyback price reconsider, and meeting will be held before one day from record date, check it from BSE site…..it is right or wrong please confirm!
This is what the company has mentioned in the public announcement, a copy of which has been submitted to the BSE for the attention of the shareholders of the company.
“The Board of Directors of the Company may till one working day prior to the record date i.e 20.07.2023 increase the buyback price and decrease the number of securities proposed to be buyback such that there is no change in the aggregate size of the buyback”
So tomorrow they may take a decision.
Okay Thank you
I personally think the buyback price will remain the same i.e. 150 as the buyback price is already 20% higher than today’s closing rate.
On board meeting date price was around 143 to 144 so that was hardly 5% so at that time this submission may be done.let us wait .increase was suppose to be done on ex date but no movement on that observed.
The result of the postal ballot will going to be released today. Have taken a decent position yesterday as I think the risk is quite less and have a good chance of 50% AR if the buyback is approved. If the buyback gets canceled (by the way I have also voted against buyback for my previous small holdings) then will keep this share in my holding for a couple of months as I hope the management will again come with a buyback offer.
Any idea of record date
The resolution for buyback gets approved. Record date not released yet.
Record date is 21 July 2023
Thanks
21/07/23
Request all to consider that is is only 2% Buyback, so even if it falls to 130 or 125, there is a chance of getting stuck and make loss.
Sumit ji,
Thank you very much for your kind n helpful views.
May be history will repeat itself if the share keep trending upward in the next few days.
Time to buy I think
The buy back price won’t change. Price may increase in the market during the period of the process. But still reaching ₹ 250/ is a very wild dream. May be you thought living in dreams is better 😉
Gopi ji, I think probability of price falling to 110-120 is much higher. Then buyback price 150 became very attractive 😀😀
In view of the class comment posted by my new found Guru , Sree Rohit ji I withdraw this premature comment and hope that this Company will shine like Kohinoor and carry forward it’s magical performance of the past which Rohit ji has high lighted. I hereby withdraw my comment with appology and wait for better things to happen. After all Diamonds are for ever
👏
This comment is withdrawn with apology in view of the comments/clarification made by Rohit Ji with detailed research data.
Gopi ji,
Your character have been elevated high with your post. Only broad minded great people will realise that they have hastily commented. From the bottom of my heart, I really appreciate your readiness in tendering apology. God bless you with all the best.
“have been” may please be read as “has been”. Typographical error . Inconvenience caused, if any, is very much regretted.
Thanks a ton SRK Ji for your warm, and kind hearted words. I feel greatly honoured and indebted. Have been learning a lot by going through the comments of so many experienced people like you, Sumit ji, Paliwal Ji and very recently,of the hard working Rohit ji. Every one who has been commenting in this group are really contributing by sharing their valuable informations and experiences. This is an exciting platform to me,of late
Thank you all my great unknown friends. Waiting for some good companies to come up with buyback. I enjoy participating in buyback. It provides some tax free income apart from the thrill and excitement with out which life would be a big bore.
In that case moto behind buyback will be failed.it get dropped from 143 to ………..
Every body should wait. I think price will fall and may reach to a level from where this buyback became very attractive. Then you can buy
Looks like people knew about this earlier itself, it tried to go above 156 few days back but fell to 140 levels, so some insider news to traders!
Relieved to know that it has fallen only this much. Hope will reach up to 140+. Best of luck dear.
I sold off at 134 and booked the loss, let see if good to buy at later date
Very good 👍
Awesome!
I too hope the same, added 475 @ 135 yesterday, today ( 5% in my portfolio). This buy back price may change to 250/-
Last time also increased. I love this company.
Hi… can you share details of earlier buy back price change? I don’t know if that is possible?
The buy back price won’t change. Price may increase in the market during the period of the process. But still reaching ₹ 250/ is a very wild dream. May be you thought living in dreams is better 😉
Sorry Gopi but it happened with Goldiam. Here are the details: –
1) Board approved a buyback on 21 July for Rs 675 per share. The approx share price on this date is Rs 580.
Link – https://www.bseindia.com/xml-data/corpfiling/AttachHis/52884a34-a84b-4bdf-b34f-5f1d0913ca3b.pdf
2) The member rejected this in the Annual General Meeting on 28 Aug 2021. The approx share price on this date is around Rs 675.
Link – https://www.bseindia.com/xml-data/corpfiling/AttachHis/443b44c5-9ca9-4da4-a918-d151bda7b3db.pdf
Promoters voted against the special resolution and I think the reason is the CMP is already the same to the buyback price.
Link – https://www.bseindia.com/xml-data/corpfiling/AttachHis/6b59212d-773f-408c-955c-9ebc7dc4f864.pdf (Resolution 6)
3) Board again approves the buyback of shares on 13 Sep 2021 @ Rs 1200 per share which get approved
Link – https://www.bseindia.com/xml-data/corpfiling/AttachHis/97c05a8e-d0e2-4d06-b2a4-905b2537c8f9.pdf
On this date, the approx share price is around 950 and on the date of approval in the shareholder meeting on 13 Oct, the price is around 940.
Awesome research work, simply amazing. Lot more again to learn. You look like a great teacher 😍. Love you for the efforts. Awaiting for more of your exceptional contributions ☺️
Thanks for your comment!
I hereby withdraw my comment and tender my unconditional apology for the same.🙏
Very Surprising and Very Bad. I really feel good that I have not jumoed to purchase and waited for the announcement.
It has been reverse in Welspun india, but better safe than sorry…
Sumit ji,
Congratulations. I have purchased 675 shares, the cost price of which is 147.9 per share. Now a days no benefits in the Buybacks. In fact, may have to face significant loss in the case of symphony. Eagerly waiting for your response on the recent Buybacks. Thank you n all the best.
Dear SRK ji,
Thanks for kind words. Some Buyback, has been extremely good. I suggest to check EPS and PE of the share and not only Buyback thing. Like this Goldiam had high PE therefore chances of going up limited…
Else all is a pure chance.
Wish you better luck next time.
Sumit ji,
Thank you very much for your valuable views n wishes
32.69 cr buyback at the price of 150 only..is it a joke?
If your information is true, it is out right cheating. Not just a joke. We should be very cautious with Diamonds and firms dealing with it. Remembering Nirav Modi. Thanks.
It is true and available on NSE web site.. They also declare result of Q4.
https://www.moneycontrol.com/stocks/reports/goldiam-international-outcomeboard-meeting-under-regulation-302-and-31646041.html?classic=true
Hi Gopi Ji, as you said, my position has become a gambling, I am learning now, not everything we monitor will work when we get into it. I bought at 147 (2000 quanitity) but they delcared buyback at 150, I think i will end up in another big loss! Looks like i need to learn a lot 🙁
Hello Sri,
It looks like the share will open negatively as the result is negative in comparison with Q4 2022 as well as a poor buyback rate. If I were in your position, I will try to get out of the stock rather than wait for the buyback. However, I will keep the holding if it opens below 130 and go with buyback but will make sure I will qualify as a small shareholder. Also, I suggest you not place a sale order on Monday in the pre-open market.
Can’t be fairer, humile, honest and in short, better than that.👍👌
Thanks dear for the understanding. Good to know that you are learning fast. Experiences like this will be the best teacher. Rohit ji has given some very good and sensible suggestions which are worth following. When the company announced the board meeting about two weeks in advance, as against the usual 3 to 4 days,I was feeling suspicious but still leaped in to the trap and came out due to Rohit Ji’s comments. Wishing you good luck and hoping for the best 🙏
Thanks for your comment Gopi. Please do not take any decision on my advice or anyone else advice. Suno sab ke karo man ke 🙂
Axita cotton board meeting on 23rd May 23 for buyback .expert’s pl advise
Although I am not expert but Axita is heavily operates stock. You may expect things opposite of general perception. Since company do not have much of the cash flow huge buyback is not expected. This stock usually deals in circuit if someone got traped then it will be very difficult to escape. I will stay away from this.
Agree with you Atul ji. It looks like what is commonly known as penny stock. Chance of gaining any thing is as slim as winning in lottery. I will run away from it.
Thanks Atul, Gopi for your views, this would help people like me to save from getting trapped
Purchased 280 shares at the average price of Rs. 149 so far.
Thanks dear Sri Ji, for the comments. I was only appreciating your actions and courage in a humourous way. Your judgement in the case of this script was super. It moved up substantially today and I hope your targets will be achieved soon. I have been a regular participant in buy back , but has been a little bit more selective and cautious. Didn’t participate in Symphony because of the high margin which I felt would attract single share buyers. I had ,a few years ago participated in the buyback of a company named HEG . Suffered huge loss.because A R was less than 7 percent. Naturally I am over cautious since then. The loss in the case of TCS was another one. I wish all the Buyback mates good luck and better returns. After all we are all in the same boat.
Thanks Gopi for sharing details, it helps me to understand and I need to be cautious is what I learnt. Looks like Buyback will not work in every company to our favour, I am sure will end up in big loss in Symphony, will know in couple of weeks
Bought 500 @ 146.75. Further addition only after knowing the outcome of the Board meeting. Any guesses on price and percentage of buyback, presuming it to be tender based?
Congratulations on purchase at a very good price.
My assumptions based on the previous buy back
Type – Tender Offer via Special Resolution
Price – 20-25% premium on the price as on date of board meeting for approval.
Amount of Buyback – Aroun 50 crore
I am not participating in this buyback as it should be via special resolution which generally take longer time period as compared to via Board resolution.
Also, I am currently holding teamlease, hgs, wipro and welspun for the buyback.
Thanks dear Rohit ji for sharing your valuable information and considerate opinion. Your comments influenced me to get rid of my holdings, ofcourse at a small gain.May buy again after the Board meeting,if found attractive.
Thank you once again Rohit Ji
As has already been stated, I got rid of the shares after your post. Thanks again for your prompt reaction. The share price had moved above ₹ 154/ in the beginning of the week due to manipulation, probably. I feel sorry for those, particularly Mr. SRI if they are still holding the shares
Wishing them good luck. May be, they get the advantage of 100 percent A R which might save them from loss in the end. Please continue to post useful comments.
I brought 2000 quantity at 147, will sell them after the buyback announcement. Can we expect 5-10% return, please suggest if this would work? Or we should try pure buyback?
Congratulations dear Sri Ji for your courage. Pure gambling. Good luck.
Dear Gopi, I have no intention to do gambling. Based on what i monitored recently for 4-5 buybacks. I have seen the trends, as soon as board meeting is announced, there would be some upmove and after annoucement of details, there would be further upmove, hence i thought of getting out during that upmove. I have seen symphony shared moving up untill record date but fell after the record date. Wipro also had almost 5-6% runup but it came down now. Similarly have seen in Welspun also moving up before the record date. By going these I though can make some money. Please suggest based on your experience, so that I wont get trapped !
Symphony I purchased 166 shares close to ex-date at 1127 and they are taking lots of time to get the buy back process completed. Now buyback acceptance going on but price has fallen almost 21%. Based on ER of about 10% need to see how much would be the AR and will I recover this loss?
Wipro I bought 1200 at 272 shares and saw about 20rs profit but waited for more, however got out with 10rs profit. looks like Wipro also will take lots of time to complete the process
Similarly Welspun i waited to buy after the annoucement but it quickly moved from 87 levels to 100+ and came back to 95, I bought 2080 at 95.35 levels close to ex-date. However one good thing is they are very quick and completing the full process within a month or so
Based on these experiences, I brought Goldiam 2000 quantity at 147, I am expecting some profit once annoucement is made, either will sell all shares after annoucement or retain upto 2L and exit rest close to ex-date.
Request Sr to suggest if I am taking a too much of risk and follow some particular process
Wipro brought at 372
Hi Gopi Ji, looks like my purchase in Goldiam turned gambling, though it went up by 10rs, now in loss. looks like i have to be more careful
Purchased 287 shares today at the average price of Rs. 147.85 in the first phase in connection with the buyback.