HomeBuybackGNFC Limited Buyback 2023

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%

39 Comments

Just got the message – 21/277 .Around 7.58%

Also December 1 – December 7, like TCS.

Very Decent entitlement Ratio here.

GNFC possible AR aprox any idea

50%

Can any1 provide expected er and AR guidance pls . I knw ar is dificult but er atleast
Thanks

Tomorrow is the last day to get rid of as well as to be in. Wish you all good luck.

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.

Any idea on wether promoters are participating in the buyback or not?

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.

Aapko bhi wishing you a very happy and prosperous Diwali

Vikas ji,
Thank you very much for your kind words of response.

Will MTF shares eligible to get entitlement in buyback? Please answer

No .mtf shares are not entitled

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.

Please confirm

@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)

Any idea of approximate AR percentage?

As per shareholding data available last quarter acceptance ratio for retail is around 3.6%.
Final acceptance ratio is generally quite high and should be in range of 15-20%

100 % in retail

Please buy and get it.

Any update on buyback

Only @ ₹770/ per share/.

If the CMP price falls to 630 then 770 would be a good BB price.

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

My expectation was of 850-900/ Not buying at the current price.

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.