Gujarat Apollo Buyback 2021

Welcome to India’s well respected manufacturer of high quality crushing and screening equipment. Gujarat Apollo Industries Ltd. hails from Mehsana district of Gujarat and is the flagship company of Apollo group of Industries. Established around 50 years ago, Apollo group has catered the Earthmoving industry in India and abroad with its high quality products and world class after sales services.

With the equipment technology being refined through years of experience, as a part of continuous improvement of product and processes, Gujarat Apollo continues to provide state of the art and technically savvy crushing and screening solutions serving industries like quarries, mining, construction and recycling.

The company is backed by a strong team of after sales service engineers offering the best level of comfort to the customers on product life support. With the widest range of equipment offered Integrated Static and Mobile Crushing & Screening solutions and other Allied Equipment along with main business verticals for over four decades unlocking value proposition with ethics and integrity.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 26 2021
Buyback Offer Amount: ₹ 20 Crores
Date of Board Meeting approving the proposal: Feb 13 2021
Date of Public Announcement: Feb 13 2021
Buyback Offer Size: 6.81%
Buyback Number of Shares: 8,61,915
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 222 Per Equity Share

Details of Buyback:

The board of directors of Gujarat Apollo Industries Limited (“Company”) have approved the proposal of buyback of upto 861915 fully paid-up equity shares of the Company of face value Rs.10 each at a price of Rs. 222 (Rupees Two Hundred Twenty Two Only) per equity share on a proportionate basis from shareholders of the Company through the tender offer method. The board of directors of the Company have fixed Friday, February 26, 2021 as the record date for the purpose of determining the entitlement and the names of equity shareholders/beneficial owners to whom the letter of offer will be sent and who will be eligible to participate in the buyback.

Salient financial parameters:

Particulars (in cr) Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 82 68 68 30 26
Expenses 94 85 80 37 33
Operating Profit -12 -17 -12 -7 -7
OPM % -15% -25% -17% -24% -26%
Other Income 28 39 47 19 27
Interest 10 6 2 1 1
Depreciation 3 3 3 3 2
Profit before tax 3 14 31 8 16
Tax % -638% -6% 23% 14% 18%
Net Profit 19 31 31 19 26
EPS in Rs 13.98 22.91 24.87 15.12 20.61
Source: Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Gujarat Apollo Buyback 2021 in demat or physical form as on the record date [26.02.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Available] 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:

No arbitrage available. Buyback price is less than current market price.

Recommendation:

As buyback price is less than current market price, wait for the price to go below current market price and then we will check again.

5 Comments

Leave a Reply