GNFC Limited Buyback 2023

It is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizers & Chemicals Ltd.(GSFC). It was set up in Bharuch, Gujarat in 1976. Located at Bharuch in an extremely prosperous industrial belt, GNFC draws on the resources of the natural wealth of the land as well as the industrially rich reserves of the area.

GNFC started its manufacturing and marketing operations by setting up in 1982, one of the world’s largest single-stream ammonia-urea fertilizer complexes. Over the next few years, GNFC successfully commissioned different projects – in fields as diverse as chemicals, fertilizers and electronics. GNFC today has extended its profile much beyond fertilizers through a process of horizontal integration. Chemicals/Petrochemicals, Energy Sector, Electronics/Telecommunications and Information Technology form ambitious and challenging additions to its corporate portfolio. GNFC has an enterprising, strategic view towards expansion and diversification.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 24 2023
Buyback Opening Date: Dec 01 2023
Buyback Closing Date: Dec 07 2023
Buyback Offer Amount: ₹ 652.81 Cr
Date of Board Meeting approving the proposal: Nov 08 2023
Date of Public Announcement: Nov 08 2023
Buyback Offer Size: 5.46%
Buyback Number of Shares: 84,78,100
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 770 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 84,78,100 (eighty four lakhs seventy eight thousand one hundred) equity shares of the Company (representing 5.46% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 770/- (Rupees Seven Hundred Seventy only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 652,81,37,000 (Rupees Six Hundred Fifty Two Crores Eighty One Lakhs Thirty-seven Thousand only)

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 5,896 5,162 5,129 8,642 10,227
Expenses + 5,022 4,621 4,125 6,259 8,348
Operating Profit 874 542 1,003 2,384 1,879
OPM % 15% 10% 20% 28% 18%
Other Income + 215 153 237 209 361
Interest 6 5 20 3 5
Depreciation 263 264 272 292 303
Profit before tax 819 425 948 2,298 1,932
Tax % 10% -17% 27% 26% 24%
Net Profit + 741 499 689 1,704 1,464
EPS in Rs 47.69 32.1 44.35 109.62 94.2
Dividend Payout % 15% 16% 18% 9% 32%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  GNFC Limited in Demat or physical form as on the record date [24/11/2023].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [01-12-2023] by selling your shares through your broker on NSE or BSE.
3. Then on [14-12-2023], 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 260 Shares at CPM of Rs. 675 (2,00,000/770)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 175500 175500 175500 175500
No. of Shares Buyback 86 130 195 260
Buyback Profit 8,170 12,350 18,525 24,700
Profit% 4.66% 7.04% 10.56% 14.07%

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