Indian Toners & Developers 2020 Buyback

Established in 1992, Indian Toners and Developers Limited has been a pioneer in the field of toner manufacturing. ITDL’s huge client base spread across more than 20 countries is testimony to its excellence in toner manufacturing for 26+ Years.

Indian Toners manufactures world-class products using the best raw materials sourced from world-renowned manufacturers. The quality and performance of toner powders manufactured at Indian Toners, is at par with OEM standards. Purchasing compatible toners from Indian Toners is a big cost saving opportunity for customers, as they get high quality products at competitive prices.

Buy Back Offer Deal:

Buyback Type:	Tender Offer
Buyback Record Date:	Jan 15 2021
Buyback Offer Amount:	₹ 37 Crores
Date of Board Meeting approving the proposal:	Nov 05 2020
Date of Public Announcement:	Nov 05 2020
Buyback Offer Size:	17.56%
Buyback Number of Shares:	2311610
Price Type:	Tender Offer
FV:	10
Buyback Price:	₹ 160 Per Equity Share

Details of Buyback:

The board of directors (“Board”) of the Company approved a Buy-back up to 23,11,610 (Twenty-Three Lakhs Eleven Thousand Six Hundred Ten Only) fully paid-up Equity Shares of Rs. 10 each of the Company”) at a price of Rs.160/-(Rupees One Hundred Sixty only) per Equity Share (“Buyback Price”) payable in cash for an aggregate amount of up to Rs.36,98,57,600 (Rupees Thirty-Six Crores and Ninety-Eight Lakhs Fifty-Seven Thousand Six Hundred Only) (“Buyback Size”), on a proportionate basis through the tender offer process.

Salient financial parameters:

Particulars(Crores)	Mar-15	Mar-16	Mar-17	Mar-18	Mar-19	Mar-20
Sales	92	105	114	112	115	92
Expenses	70	81	87	85	92	79
Operating Profit	21	24	27	27	23	12
OPM %	23%	23%	24%	24%	20%	14%
Other Income	3	2	7	7	6	7
Interest	0	1	1	1	1	1
Depreciation	3	3	3	4	4	4
Profit before tax	21	22	30	30	25	14
Tax %	24%	26%	22%	18%	19%	17%
Net Profit	10	11	23	24	20	12
EPS in Rs	13.02	13.2	28.38	18.27	15.14	9.02

Source: Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Indian Toners & Developers 2020 Buyback in demat or physical form as on record date [ 15.01.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not announced], by selling your shares through your broker on NSE or BSE. 3. Then on [Not announced] 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 1250 Shares at CMP of Rs.135 (2,00,000/160=1250)

Acceptance Ratio	33%	50%	75%	100%
Amount Invested in Buyback	168750	168750	168750	168750
No. of Shares buyback	412	625	937	1250
BuyBack Profit	10300	15625	23425	31250
Profit	6.10%	9.26%	13.88%	18.52%

Recommendation:

Review and Recommendation of Indian Toners & Developers 2020 Buyback Buyback from our IZ team is: 5/10 [Expected ER = 15-20%]

Did not sell when price reached 147

Now stuck at buyback

Ohh….I am now stuck as I bought 535 shares in Bought at Rs 138.70

Now thinking what to do…Should I exit before the buyback

What is AR expected ???

Any advise from senior members

After announcement of buyback, about 5 lakhs of shares traded, with average over 50k per day, price moved up to Rs.145 from about Rs.130. When it went Ex, hardly 10k shares brought it down to Rs.135. Can someone explain please?

Lack of Buyers at this price. No one is ready to pay 132.5 for this stock now. I had this problem in few buybacks. Price can really drop even below 125 till the time letter of offer is received.

Is it advisable to enter at current levels
I don’t think gain of 10% merits the risk we will be assuming

Whatever little knowledge I do have, I want to share. If it helps, fine. The price of the share reached to Rs.145 from Rs.110 since the announcement of buyback. The share is being traded in BSE only. The liquidation of unaccepted shares may be at a very low rate and this may results in lowering of the advantage of the buyback. I will be happy, iThank you.

I have a query just for my understanding

If I have 535 shares in Indian Toner before record date and ER is 20%(107 shares)

If AR is 50%(266 shares)

Then will total no of shares be taken back by company thru buyback will be 266 shares and balance shares returned to my account.

Correct me if I am wrong.

Thank you🙏🏾

Yes

530-107(er) = 423
Then 50%(ar) of 423 = 211.5

Accepted = 107 + 211.5 = 318.5(319)

Ashish sir, please re examine your calculation. I am sorry to say it. If I am not wrong, balance of 50% shares will be returned after acceptance of 50% shares for buyback. ER is nothing to do with, once AR is finalised. If am wrong, please ignore my posting. Thank you.

Expected AR of Indian Toners please.

Around 50% to 60% as the CMP is just less than 10% of the buyback price.

Thanks Umesh ji, for adding page on ITIL.
I had bought some at 122-125…

Market leader in compatible toner manufacturer. Largest in domestic and largest exporter. Largest capacity in South East Asia.

Toner is used in laser printers, new digital machines and many more.

Key advantage of toner printing :

1. Affordable for high volume print users
2. High precision prints
3. Better print spreads on average.

Indian Toner caters to more than 600 dealers, 1500 rifellers, 44,000 photo copy outlets.

Total capacity of 3600 mtpa vs domestic industry size of 700p mtpa.

Focused on R&D, key clients are HP, Samsung, Brother, Toshiba and many.

Financials:
Annual revenue run rate at 100Cr (normalised) and 20-22% EBITDA margin which is 100% converted into CFO.

Zero debt and Book Value of Rs 188 Cr (current Mcap : 178 Cr)

Thanks a lot for your valuable information.
Sir,
Can you inlight about E R of Engineers Ind as per present shareholding data.
It will help many.
Thanks in advance sir.

Y no comments here ??????

Admin please update page with details so that all can discuss in forum

How is this buyback like ??

Is it worth 123 rs to buy today only for future buy back @160

Now it is Rs 135….is it worth it to buy 1500 shares for buyback

Any idea what is going to be the ER and AR

Should we take risk ???

available CMP is not advisable for entry as it will fall surely after the ex date.Then it will mostly stay sideways around the 122-125 range…Though for high risk takers it’s worth a gamble…

Ohh….I am now stuck as I bought 535 shares in Morning @ Rs 138.70

Now thinking what to do…Should I exit before the buyback

kindly advise members ???

@rashid ji….continue to be alert and hold for short term gains…as the rally will likely to continue till 13-14 Jan in this scrip…exit thereafter … otherwise continue to hold for buyback ( if you are using surplus capital) as the capital will get stuck after 13/14 jan due to selling pressure.. as this is an small cap….with below avg- avg performance…