KRBL Limited Buyback 2023
Known to be the world’s most precious rice strain, basmati has a special meaning for us at KRBL. It is one of the most treasured grains, and is grown only once a year in the Indo-Gangetic Plain beneath the Himalayan sub ranges. The fertile alluvial soil, fresh and cold air and the sweet water from the ranges contribute primarily to the unique characteristics associated with the grain. It is a remarkably long variety of rice and has a distinct aroma and discrete nutty taste. When cooked, the Basmati is longer, lighter and fluffier than standard white rice, and does not stick together.
Like Champagne of Campaign, Basmati also is geographically indexed to the northern region on the Indian Sub-continent, which includes Basmati growing areas in the states of Uttrakhand, Punjab, Haryana, Uttar Pradesh, adjoining areas of Jammu, Kashmir, Himachal Pradesh and Delhi.
Quite like wine, it gets better with age. It ages Basmati from a minimum of one to two years, to enhance and intensify its taste, aroma and cooking characteristics. Under good conditions it keeps well for up to 10 years. Old rice cooks up fluffy, with separate grains and releases a pleasant aroma.
Basmati can be consumed in the multiple forms listed below. The consumption is typically based on recipe, eating habits, health needs and cultural geographical usage.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Aug 25 2023 |
| Buyback Opening Date: | Aug 31 2023 |
| Buyback Closing Date: | Sep 06 2023 |
| Buyback Offer Amount: | ₹ 32,500 Lacs |
| Date of Board Meeting approving the proposal: | Aug 10 2023 |
| Date of Public Announcement: | Aug 10 2023 |
| Buyback Offer Size: | 2.76% |
| Buyback Number of Shares: | 65,00,000 |
| Price Type: | Tender Offer |
| FV: | 1 |
| Buyback Price: | ₹ 500 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (in Cr) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales + | 4,120 | 4,499 | 3,992 | 4,211 | 5,363 |
| Expenses + | 3,271 | 3,629 | 3,170 | 3,549 | 4,424 |
| Operating Profit | 850 | 870 | 822 | 662 | 939 |
| OPM % | 21% | 19% | 21% | 16% | 18% |
| Other Income + | 15 | 23 | 23 | 43 | 93 |
| Interest | 68 | 62 | 24 | 13 | 15 |
| Depreciation | 64 | 73 | 72 | 74 | 76 |
| Profit before tax | 733 | 758 | 749 | 617 | 941 |
| Tax % | 31% | 26% | 25% | 26% | 26% |
| Net Profit + | 503 | 558 | 559 | 459 | 701 |
| EPS in Rs | 21.37 | 23.71 | 23.74 | 19.52 | 29.78 |
| Dividend Payout % | 12% | 12% | 15% | 18% | 0% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 165000 | 165000 | 165000 | 165000 |
| No. of Shares Buyback | 132 | 200 | 300 | 400 |
| Buyback Profit | 11,484 | 17,400 | 26,100 | 34,800 |
| Profit% | 6.96% | 10.55% | 15.82% | 21.09% |
96 Comments
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Thanks to today’s announcement of Government ‘s possible decision of reduced export price of Basmati rice the share price shot up and I sold half of my holding today. To me this was the best buyback of the recent times. Thanks to everybody and Sumit ji in particular.
183 out of 401 shares accepted in KRBL buyback. Funds are also credited just now in my bank A/c. Congratulations to all the members and thank you very much for your guidance.
KRBL LIMITED Buyback Update : 214 Shares Accepted against 470 Shares
Retail Acceptance Ratio remained at 45.50%
Exactly same here.
217 out of 500
Very good acceptance ratio
Yes very good. Hope price sustain above 410-425.
Hey Ankit,
Did you get the messages from your broker or CDSL or NSDL? Because I do not receive any AR information till now apart from Indiamart from Zerodha or PayTM.
KRBL 464. Very soon it can cross buyback price.
If so, every participant should be very happy about it. I am more than happy as it is.
What if price crosses 500 and zooms to 600 and then I think we will regret to tender the issues at discount.
Also, price suddenly jump when majority of the retail investors already tendered. Seems like someone was holding the price.
Unlikely to cross₹ 600/ If at all that happens, please accept it as one of those things which are beyond your control and still be satisfied with the huge gains you have made.
Agreed
If 50% of shares are accepted you will still have 50% on which you would have made some gains
What more can we expect from a buyback
Now, price is around 350/ Have you bought any? I bought 190 . Hope to sell around 375/
Gopi, please consider this my advice only (not otherwise)
Do not do such type of trading as you will not going to earn decent money ever. Try to invest only for the long term or at least for a term of up to 2 years. I remember you asked me for a few shares for the long term but I haven’t responded to you but after reading your comment I think it is better to share with you as I do not like it if you lose money. I have various shares in my portfolio which I am accumulating over the long term including CARTRADE TECH, RATTANINDIA ENT LIMITED, ICICI SECURITIES (which I recently added after the delisting news), IZMO, NAZARA TECHNOLO, etc.
Krbl no of orders – 34,297
Expected AR – 38-48%
AR FOR KRBL WILL BE 35 TO 42% BEST RETURN AMONG ALL 4 BUYBACK
DUE TO SUDDEN PRICE MOVEMENT TODAY AR WILL MOST PROBABLY BE TOWARDS THE UPPER RANGE I.E 42%
I Also Think AR for KRBL will be in the range of 40 to 50%.
I think the positive move is due to the release of annual results. I hope this buyback will give a decent return.
I think it is the good time to sell some KRBL shares and book profit as after buyback closure, there will be huge selling pressure and price can go further down. Also, govt. imposed export duty also Impact the share badly.
Good ER in KRBL and PEL.
Expecting 35 to 45% AR in KRBL and 40 to 50% in PEL depending on the market price fluctuations.
PEL can surprise positively if price shoots up very near to Buyback price in 4-5 days or till closing of Buyback date… Showing great strength.. Even if it fails … It appears good to hold for a month after buyback…
Sumit ji,
Thank you very much for your kind post. Undoubtedly you are an expert and have won the hearts of the readers.
What a perfect prediction, Sumit ji! Big up move in KRBL today. Hope participation as per your suggestion is going to yield another bumber return. Thanks a ton again.
81/465 ER
https://buyback.alankit.com/
Can check entitlement for krbl from this link
Thanks for providing this link.
Buyback opens on 31/8/2023 and closes on 06/9/2023. Last date of settlement of bids is 13/9/2023.
KRBL
17.46% ER
Retail or general?
Retail
Retail
ER is 51/292 for Retail Category and 5/208 for General Category.
DId you guys get email from the registrar or checking on some website? If so, please share the link. I haven’t got any email related to ER from the registrar.
Thanks, this is the best ER of the recent times. I have no idea why members are really interested in the ER, which to me is totally irrelevant. AR is what matters , ofcourse,apart from the post buyback price of the script in the short term.
ER gives at least basic confirmation that this is the bare minimum quantity will be accepted. Some people do not tender all the hold shares and only tender the ER shares as the sell after record date and buy on the last date of tender duration.
Thank you Varun ji for your prompt response
Definitely AR matters. But ER gives guaranteed returns and how much down side risk we can take after the buyback. In my case 450 shares at Rs 403. ER gives 80 shares with profit of Rs 7760 without tax. Down side risk is zero on share price upto 382.
Hope it helps. Different views you can elaborate
Thank you RAOD for the finest explanation. I have so far not thought of this possibility. I stand enlightened, although I may not follow this idea of selling in between.
Hi Sir
I am holding 800 shares and want to tender in the buyback ,kindly advise what is the expected acceptance ratio as I would like to buy similar qnty of shares from the market to maintain my holding qnty.
Also,what does AR & ER stands for ?
Thanks
ER: Entitlement Ratio – this is shared by company prior to tender the shares. This implies that minimum this number of shares will be accepted.
AR: Acceptance Ratio – This is calculated after company buy the tender shares. This can be either equal to ER or more.
Thanks Sahil ji ,basis ER of 17.8% approx.working as shared by Mr. Rahul in previous comments, would it be safe to assume that I can tender 800*17.8% = 142 shares, if KRBL maintains the similar ER in their communication ?
But 800 shares value under 2 lakh. So you eligible in General category.
Thanks Varun ji
I have some queries regarding this buyback. Please enlighten me.
1. If I buy today will I be considered for this buyback.
2. I’m planning to sell the shares after the record date. When can I sell my shares tomorrow or on Monday.
Regarding Your Queries.
1 You will be eligible if you buy today.
2. You Can Sell it tomorrow and repurchase again.
But now buyback process is started with in T+5 days. So it not make any sense to sell it after record date and repurchase again to tender in buyback.
Thank You Ankit ji. This is my first buyback hoping for good acceptance of shares.
Are you sure about selling it tomorrow? If I sell it tomorrow the shares will not be recorded in demat account as on record date? I’m confused. Can anyone explain this process about when can i sell my shares and when canI buy corresponding to tender form?
I don’t think buying on 24 will make it eligible. You should have shared in account 1 day prior to record date. So last date to buy is 23rd.
Record date was 25th Aug
Kama ji , Sumit ji and other members
I heard that now shared are credited the next day and that’s why we can buy even today for shared that have the record date 25th
My understanding is t+2 days, earlier it used to work like this only
Kindly confirm if anyone knows about this
I checked my demat and it shows krbl shares that I purchased yesterday
Based on that took some risk and bought krbl today thinking that they will be credited by tommorow and will be considered, let’s see if they will be considered in buyback
Earlier it was T+2 days but now it is T+1. So if you purchased today i.e. on 24th Aug you will be eligible for buyback.
Hello members
Kindly respond
Which is the best fr share buyback among the 3
Krbl fdc piramal
Best fundamentals
I tried to analyse them
And liked krbl
What do you think
Kama ji, Sumit ji, nd other members
My order of preference is KRBL,PIRAMAL, FDC. FDC appears to be not yielding reasonably good benefits .
KRBL is reasonably placed. It would be interesting to see the ER/AR.
Thanks kama ji
I am holding on to FDC and KRBL .FDC because of fewer participation and hence,hoping for a better A R.
YES I TOO BOUGHT FDC AND KRBL HOPING FOR REASONABLE ER AND GOOD AR
Where to find if promotors are going to participate in buyback or not? Also, if there is any website that provide details about % retailers holding the stocks. I checked many website but majorly overall public shareholder details available. Experts, please provide your valuable responses.
Whether promoters are participating or not is declared during the board meeting only. So, you will get the same in BSE. Regarding % of Retail shareholding will not be available anywhere.
Thanks for your kind response. I appreciate that.
Took a position of 450 each in 2 accounts. Understand its too aggressive and risky, but it seems to be the best of the recent bunch and ~20% AR may be possible.
Still considering PE , EPS and current results, it may rise ….
Medium term share if not short term..
Experts kindly suggest.
You are the expert and you are absolutely right and spot on. All the best and good luck.I will wait for a small correction to buy, but will be participating.
I also have purchased only small quantities for the two accounts due to my limitations. Thank you, Sumit ji, for your kind gesture of sharing your valuable views. As we believe that you are the expert with good knowledge n experience, please continue to help our readers with your opinions on each and every BUYBACK. I pray God to bless you with all the best.
Thanks Gopi ji & SRK ji . I really believe in combined wisdom and hope this equity would be beneficial for us.. We need to see till Oct – Nov, the paddy season for this counter… If remain invested…
Buyback may be 20% -30%. The daily turnover of the shares also suggest that how much active shareholders are there in the stock…
The lesser the turnover, more the chances of having high acceptance…
I have added 20 @405, I will add up to 100 in multiple trenches to participate in Buyback
I think ER will be somewhere around 17.8% (on the basis of the last financial statement). I have an open position in it. I think we can see some big up moment if the share close above 427 with a decent volume. Will buy more if the share close below 395 with decent vloume.
Thanks Rohit ji, added 300 more at 397, seeing your conviction…
NO ER WONT BE 17.8% WILL BE 100% LOWER THAN THAT
Yes, in most cases, it will be lower than this as I have computed it using the details of the shareholders as on 31 March 2023. That’s why I used somewhere 🙂
Rohit ji, you mean ER or AR will be 17.8%?
The above details are for the ER. AR will be always the same or more than ER
Sirji, as per my calculation ER is around 4-5%?
9.75L shares for retail.
2.34 CR shares with retail.
Is this wrong?
sir can you please help with this calculation ….??
how we are calculating this since i got figures of 2.34 cr retail shares on 30th june and retail portion for buy back is 9.75 lac shares …so dividing them it comes around 4.5 %
is it done this way only or not … if you can please explain
thanks
As per Annual Report 31 Mar 23: –
Small Shareholder holding – 5481569
Reserved Buyback Shares – 975000
ER – 17.78%
2.34 crore shares are based on the face value of shares, not market value whereas for the purpose of buyback market value is used to determine small shareholders.
thanks for the info. sir but the last annual report data is for yr. 21-22 only ..is it right than how much difference should it make
Hi Sir
I am holding 800 shares and want to tender in the buyback ,kindly advise what is the expected acceptance ratio as I would like to buy similar qnty of shares from the market to maintain my holding qnty.
Also,what does AR & ER stands for ?
Thanks
Rohit bhai how you calculate no. of market value share please explain i can’t understand
AR should be around 15-18%.
Thank you very much for your kind views, Umesh ji.
Should we enter now
How are the fundamentals of the company
Any chances of it going down
After record date
Also what is the expected AR
KRBL Limited Tender Route Buyback
Buyback Price : 500
Today’s Closing Price : 413
Buyback Size ₹ : 325 Crore
Buyback Size in Shares : 65,00,000 Shares
Retail Quota : 9,75,000 Shares
Record Date for Buyback : Friday, 25 August.
Mode: Tender Offer
Price: Rs.500/-
Size: 65,00,000 shares ( 2.76% of the total paid up)
Record Date: 25/08/2023
Overlapping. Sorry.
Buyback announced
No of shares : 65,00,000
Price – 500rs
Size : 325cr
Record date : 25 August
Take a decent position today in KRBL. Hope for the tender offer. Little risky.
Tried to buy @ 290/ Could not succeed. Will see how it will be tomorrow. FDC and Control PR are also looking good to me.
May be Rs.390/-
Yes, SRK Ji. Thanks yet again.
WHAT CUD BE THE SIZE OF BUYBACK ? IF SMALL SIZE THEN ITS A WASTE OF TIME AND MONEY
The buybacks in 2014 and 2017 were open offer buybacks, not tender offer buybacks. I do not know of any other recent-year buybacks from this company.
Thanks Pavan ji for your prompt update. I think the era of Open market buyback is coming to an end with the recent intervention of SEBI with the support of the Central Government which to me is a very welcome and much needed reform. Chance of manipulation may have been inbuilt in open market buyback. Let us assume that all forthcoming buybacks will be by tender route and hope for a better buyback experience.
Apologies Gopi ji. I have read an article from 2017. The open offer buyback was from only in 2014. Hope the upcoming buyback will be a tender offer.
I am able to find details for buyback only for the year 2014 but not for 2017. Can you please recheck for the 2017 year buyback? I think the last buyback by the company is in the year 2014 only and not after that.
Apologies, I have read an article from 2017.
https://www.thehindubusinessline.com/markets/stock-markets/Buyback-window-closes-for-KRBL/article20724694.ece
But you are correct the details of the buyback were about the 2014 open offer.
Good that lots of buybacks are coming up. Selection and segregation of the good ones from bad looks very challenging. Knowledgeable members are requested to help with their valuable informations and views.