KIOCL Limited Buyback offer 2018

KIOCL Limited, a flagship Company under the Ministry of Steel, Government of India, with Mini Ratna status was formed in 2nd April 1976. The country’s prestigious Export Oriented Unit having expertise in Iron Ore Mining, Filtration Technology & Production of high quality Pellets has its Corporate office at Koramangala, Bangalore & Pelletization Complex at Mangalore, the coastal city of Karnataka.

The annual capacity of the Pellet Plant is to produce about 3.5 Million tons of Iron ore Pellets. Other facilities include Reclaimer to load Pellets directly from Stockyard to vessel. Pellets produced at the Mangalore Plant have excellent metallurgical properties and are an ideal feed for Blast Furnace and DRI Units.KIOCL has to its credit ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007 certifications.

KIOCL has dedicated and experienced senior level staff having more than 25 years of experience in Operation and Maintenance of Beneficiation and Pelletization Plant. KIOCL has already entered into several O&M works across India. It has entered  O&M contract with NMDC for Iron Ore Beneficiation and Pelletization Plant, O&M contract with M/s Orissa Mining Corporation (OMC) to operate and manage 1.4 MTPA Chrome Ore Beneficiation plant at Kaliapani Odisha and had Operated Coke Handling System(Crusher Conveyors) of M/s MRPL, Mangaluru.

Under the Make in India initiative of Government of India, KIOCL produced high grade Pellets out of imported high-grade ore procured from Brazil and exported.

In order to support and participate in the National Policy on Skill Development of Govt of India, KIOCL has entered into MoU with National Skill Development Corporation and Quess Corporation Ltd an approved NSDC Partner, which envisages conducting training programme for employees, contract workers, local youth, women and disadvantaged groups and employees of other establishments including CPUs on their behalf.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Oct 01 2018
Buyback Opening Date: Oct 22 2018
Buyback Closing Date: Nov 02 2018
Buyback Offer Amount: ₹ 214 Cr
Date of Board Meeting approving the proposal: Sep 18 2018
Date of Public Announcement: Sep 18 2018
Buyback Offer Size: 1.98%
Buyback Number of Shares: 1,25,88,235
FV: 10
Buyback Price: ₹ 170 Per Equity Share

Details of Buyback:

The Board of Directors of the Company Approved the proposal to Buyback of not exceeding 1,25,88,235 equity shares (representing 1.98% of the total number of equity shares in the Paid-up share capital of the Company at a price of Rs. 170 (Rupees One Hundred Seventy only) per equity share (the “Buyback Offer Price”) of face value Rs.10 each, payable in cash for an aggregate consideration not exceeding Rs. 214 crores (Rupees Two Hundred Fourteen Crores Only), which is not exceeding 10% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited financial statements of the Company for the financial year ended March 31, 2018

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of KIOCL Limited Buyback offer 2018 in demat or physical form as on the record date [01.10.2018]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Announced Yet] by selling your shares through your broker on NSE or BSE. 3. Then on [Not Announced Yet], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Recommendation:

Review and Recommendation of KIOCL Limited Buyback offer 2018 by InvestorZone team is: 1/10 [Acceptance Ratio: 100% But Loss Due to CMP is 185 and Buyback Price 170] Fair: 1-5 Good:5-7 Excellent: 7-10

Company Contact Details:

KIOCL Limited Block II, Koramangala, Sarjapura Road Bangaluru 560 034 Phone No. 080 25531461/66 Website www.kioclltd.in

    It is best to buy only after knowing that it is atleast tender and NOT A GOVT company!!
    Thankfully, i waited and is saved!

    I would really like to see, if any retail tender their shares in this BUyback!!!

    Everyone was thinking that buyback will come at 250 and in that anticipation the price went from 170 to 250 within 3-4 days. A lot of people got trapped in KIOCL near 240-250. As soon as the news comes out in the media that buyback price is just 170 ,the Shares got severely hammered and hit 20% LC today. So be careful with Govt. companies buyback. Do not try to enter till price is announced.

    Kiocl buyback
    Buyback size – 1,25,88,235 shares
    Buyback price – 170/-
    Buyback size – Rs. 214 crore