IBull Ventures Limited Buyback 2019

(i) Indiabulls Ventures Limited is one of India’s leading capital market companies providing securities and derivative broking services. The company is registered with SEBI as a Stock Broker, a Depository Participant, a Research Analyst and a Merchant Banker in Category I. The Company’s equity shares are listed on the National Stock Exchange of India Limited and BSE Limited and its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. The combined market capitalization of these companies for the financial year 2017-18 was Rs. 75,838.2 Cr.

(ii) The company’s subsidiary, Indiabulls Commodities Limited, provides commodity services in MCX and NCDEX exchanges. Indiabulls Ventures was the first Company to be assigned the BQ-1 grading by CRISIL, which is the highest broker quality grading and is a reflection of the financial stability, strong fundamentals, and stringent risk management controls that the Company possesses. Brickworks Ratings has also assigned a strong credit rating of BWR A+ and BWR A1+ for its fund and non-fund based facilities.

(iii) The company is a pioneer of the online trading platform in the country. The company provides its healthy client base, in excess of 7 lacs, with investment solutions across asset classes through a dedicated sales team of more than 900 individuals across 18+ cities. The company is also engaged in the marketing of non-discretionary wealth management products through its subsidiaries.

(iv) Indiabulls Ventures is a part of the Indiabulls Group, which is one of the country’s leading business houses with interests in housing finance, real estate, securities, personal financing, construction equipment leasing, and facilities sector. The group had combined revenues of over Rs. 22,114.9 Cr. and PAT of over Rs. 6,072.2 Cr. as on the 31st of March 2018.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Dec 19 2019
Buyback Opening Date: Jan 15 2020
Buyback Closing Date: Jan 28 2020
Buyback Offer Amount: ₹ 1000 Cr
Date of Board Meeting approving the proposal: Oct 11 2019
Date of Public Announcement: Oct 11 2019
Buyback Offer Size: 12.61%
Buyback Number of Shares: 6,66,66,666
Price Type: Tender Offer
FV: 2
Buyback Price: ₹ 150 Per Equity Share

Details of Buyback:

The Board of Directors of Indiabulls Ventures Limited (the “Company”) at its meeting held on October 11, 2019, has approved a proposal of Rs. 1,000 Crores of buyback of up to 6,66,66,666 Fully Paid-up Equity Shares having Face Value Rs. 2/- each of the Company, representing 12.61% of its total existing fully paid-up equity capital (“Equity Shares”) at Rs. 150/- per Equity Share through the “Tender Offer” route.

Salient financial parameters:

Particulars(cr) 2018-19 2017-18 2016-17 2015-16 2014-2015
Revenue 128.63 83.6 76.34 80.89 76.31
Other Income 73.7 67.82 28.18 122.1 87.18
Total Income 202.33 151.42 104.52 202.99 163.49
Expenditure -130.38 -90.52 -35.67 -37.24 -41.65
Net Profit 52.12 47.09 16.87 118.26 87.26
Equity 92.63 64.04 58.57 52.25 46.22
EPS 1.21 1.6 0.58 4.57 3.78

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of IBull Ventures Limited Buyback 2019 in demat or physical form as on record date on [ 19.12.2019 ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 15.01.2020 to 28.01.2020] by selling your shares through your broker on NSE or BSE. 3. Then on [ 04.02.2020 ], the settlement will be done for accepted shares and unaccepted shares will be returned to your demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 1333 Shares at CMP of Rs.106( 2,00,000/150=1333)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,41,333 1,41,333 1,41,333 1,41,333
No. of Shares buyback 440 667 1000 1333
BuyBack Profit 19,360 29,333 44,000 58,667
Profit 13.70% 20.75% 31.13% 41.51%

Recommendation:

Review and Recommendation of IBull Ventures Limited Buyback 2019 from IZ team is:  2/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

11 Comments

    Buyback Resolution passed with 100% of Votes polled in favor. Now wait for the Record date to be announced.

    Reply

        IB Ventures is already trading Rs 13 more than buyback price. Management achieved its objective of improving valuations for the company. If people don’t participate, company may save a part of Rs.1000 crore earmarked for buyback.

        Reply

    We wish to inform you that the Board of Directors of Indiabulls Ventures Limited (the “Company”) at its meeting held on October 11, 2019 (which commenced at 10:00 a.m. and got concluded at 10:35 a.m.) has approved a proposal of Rs. 1,000 Crores of buyback (hereinafter referred to as the “Buyback Size”) of upto 6,66,66,666 Fully Paid-up Equity Shares having Face Value Rs. 2/- each of the Company, representing 12.61% of its total existing fully paid-up equity capital (“Equity Shares”) at Rs. 150/- per Equity Share (hereinafter the “Buyback Price”), through the “Tender Offer” route, as prescribed under SEBI (Buy-Back of Securities) Regulations, 2018 (“Buyback Regulations”) and the Companies Act, 2013 and rules made thereunder, as amended (hereinafter referred to as the “Buyback”).

    Reply

    In the last 5 months, the price has fallen from a high of 347 on 20 May 2019 to 100 on 10.10.2019.

    Reply

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