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 1976Located 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%


    Friends, I am participating in TCS. Can you please suggest any other buyback that I can participate based on the current price and Acceptance Ratio.

      Yes, they are. The maximum number of shares which promoter will tender in the buyback is as below: –
      1. Gujarat State Fertilizers & Chemicals Limited – 16,80,550
      2. Gujarat State Investments Limited Promoter – 18,14.224

    I wish all the members of the family of INVESTOR ZONE , a very very happy, sparkling, colourful, successful n safe DEEPAAVALI.

      Yes. Since MTF shares are lying in Client beneficiary account and are pledged to Broker/Financier

      Yes, I think so. Generally, all the corporate actions benefit will be enjoyed with the beneficial holder.

        @Rohit sir …what can be the acceptance ratio….???
        i dont thnk many people participated in this …
        is it advisable to hedge it with FO.

          I sold all the shares in the open session today. Will buy it once the ER is declared. My buy price was 672 and I sold all the shares at 699 so already in profit. I hope ER of around 12%.
          Sorry, I haven’t checked the option prices in the last 4-5 days to hedge as it was very high when I was trying to hedge (after the buyback news)

        I was anticipating a price of Rs 775 and an offer size of Rs 826 crore for the buyback. Not bad.

            Gopi ji you were right.
            I have also moved out of gnfc after a small profit.
            For gnfc buyback to give decent profit it will need a very high AR.
            Im not ready to take that risk

              I am still in the trade. I have around 300 shares @ Rs 672. As the price hit the 52-week high today I think it is better to be in trade for another 2-3 days. I am taking a little bit of risk as I do not have any other opportunity.

    Atul limited
    BM ON 7.11.23 for buyback .
    Wait and watch till 7th evening

    Not buying until the outcome of the Board meeting is known. Hope to hear from those who are following up. Looking like a good one.

    Any idea on approximate size & AR of GNFC & Somany ceramics IPO ?

    Anyway any cos coming with good buyback one shud carefully study specially if size is decent

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