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🙏🏾

      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.

      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.

      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…