ICRA Limited BuyBack 2018

ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency. Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange.
Alliance with Moody’s Investors Service
The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder. The participation of Moody’s is supported by a Technical Services Agreement, which entails Moody’s providing certain high-value technical services to ICRA. Specifically, the agreement is aimed at benefiting ICRA’s in-house research capabilities, and providing it with access to Moody’s global research base. The agreement also envisages Moody’s conducting regular training and business seminars for ICRA analysts on various subjects to help them better understand and manage concepts and issues relating to the development of the capital markets in India. Besides this formal training programme, the agreement provides for Moody’s advising ICRA on Rating-products strategy, and the Ratings business in general.
The ICRA Factor
Our services are designed to
(a) Provide information and guidance to institutional and individual investors/creditors
(b) Enhance the ability of borrowers/issuers to access the money market and the capital market for tapping a (c) larger volume of resources from a wider range of the investing public
(d) Assist the regulators in promoting transparency in the financial markets
(e) Provide intermediaries with a tool to improve efficiency in the funds raising process.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Oct 01 2018
Buyback Closing Date: Dec 12 2018
Buyback Offer Amount: ₹ 85.40 Cr
Date of Board Meeting approving the proposal: Aug 09 2018
Date of Public Announcement: Aug 09 2018
Buyback Offer Size: 2.27%
Buyback Number of Shares: 2,24,736
FV: 10
Buyback Price: ₹ 3800 Per Equity Share

Details of Buyback:

(i) The board of directors of lCRA Limited at its meeting held on 09 August 2018, approved the buyback of the Company's fully paid-up equity shares having a face value of INR 10 each from the members of the Company (except promoters, promoter group or the persons in control of the Company) from the open market through the stock exchanges for a total amount not exceeding INR 8,540 lakh excluding brokerage, costs, fees, turnover charges, taxes such as securities transaction tax and goods and services tax (if any), stamp duty and other transaction charges (the "Maximum Buyback Size"), and at a price not exceeding INR 3,800 (Indian Rupees Three Thousand Eight Hundred Only only) per Equity Share (the "Maximum Buyback Price"). (ii) The Maximum Buyback Size represents 14.98% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the audited financial statements of the Company as at March 3 t. 2018, which is less than 15% of the total paid-up equity share capital and free reserves of the Company, in accordance with the proviso to the Regulation 4(1) of the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998, as amended from time to time ("Buyback Regulations"). (iii) The indicative maximum number of Equity Shares proposed to be bought back at the Maximum Buyback Size and Maximum Buyback Price under the Buyback would be 2,24,736 (Two Lakh Twenty Four Thousand Seven Hundred Thirty Six) Equity Shares ("Maximum Buyback Shares") (comprising around 2.27% which is less than 25% of the existing paid up equity share capital of the Company). The Maximum Buyback Shares would be subject to the Regulation 38 of the Listing Regulations and Regulation 14(3) of the Buyback Regulations.

Shareholding Pattern Pre and Post buyback:

 Particulars        Pre-Buyback      Post- Buyback
 Equity Shares % Equity Shares %
(A) Promoters and Promoter Group 50,05,622 50.55 50,05,622 51.72
(B) Public 48,57,665 49.05 46,72,922 48.28
(Cl) Shares underlyin2 DRs -- --
(C2) Shares held by Employee Trust 39,993 0.4
(C) Non Promoter-Non Public (CJ+C2J 39,993 0.4
Grand Total (A+B+C) 99,03,280 100 96,78,544 100

How to Participate in buyback?

ICRA Limited BuyBack is an Open Market BuyBack In this method of share buyback, the company buys its own stocks from the market. This transaction happens through company’s brokers. This repurchase program happens for an extended period of time as a large block of shares needs to be bought. The company is under no obligation to conduct the repurchase program after the announcement. The company has the option to cancel it. Also, it can make changes in the repurchase program according to company’s situations and needs. If this method is effectively implemented, it can prove to be very cost effective.

Recommendation:

Review and Recommendation of ICRA Limited BuyBack 2018 from InvestorZone Team is: Rating: Avoid ICRA Limited BuyBack shares on the open market over an extended period of time.

Company Contact Details:

ICRA Limited Building No.8, 200 Floor, Tower A DLF Cyber City, Phase II Gurugram 122002, Haryana Phone No. +91.11.23357940-45, +91.124.4545300 Website : www.icra.in Email: info@icraindia.com

    *L&T Buyback*

    Paid up equity 280
    Retained earnings 14,250
    Share premium. 8,363
    General reserve. 25,396

    Total free reserve = 48,289 crore

    Maximum buyback size = 12,072 crore

    Expected buyback size = 8,000 crore

    Expected buyback price = 1,480/-

    Calculation based on March 2018 data