Majesco Buyback 2020
(i) Majesco is strategic partner insurers count on to deliver digital business transformation. They combine technology, expertise and leadership to help insurers modernize, innovate and connect to build the future of their business – and the industry – at speed and at scale.
(ii) An insurance platform, like Majesco Digital1st Insurance® is a portfolio of solutions designed to enable those journeys. It includes an innovative microservices platform to support products and business models in an on-demand world.
(iii) Majesco works with insurers, reinsurers, brokers, MGAs as well as greenfields and start-ups in the insurance industry. They have over 200 customers across P&C, L&A and Group Benefits who are transforming their businesses by modernizing, optimizing or creating new business models with Majesco solutions.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Nov 13 2020 |
| Buyback Opening Date: | Nov 27 2020 |
| Buyback Closing Date: | Dec 11 2020 |
| Buyback Offer Amount: | ₹ 631.26 Cr |
| Date of Board Meeting approving the proposal: | Oct 08 2020 |
| Date of Public Announcement: | Oct 08 2020 |
| Buyback Offer Size: | 25% |
| Buyback Number of Shares: | 74,70,540 |
| Price Type: | Tender Offer |
| FV: | 5 |
| Buyback Price: | ₹ 845 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars(Cr) | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 |
| Sales | 757 | 826 | 806 | 988 | 1,040 |
| Expenses | 752 | 804 | 784 | 896 | 929 |
| Operating Profit | 5 | 23 | 22 | 92 | 111 |
| OPM % | 1% | 3% | 3% | 9% | 11% |
| Other Income | 9 | 8 | 22 | 34 | 42 |
| Interest | 4 | 8 | 5 | 4 | 2 |
| Depreciation | 18 | 17 | 18 | 20 | 34 |
| Profit before tax | -8 | 6 | 21 | 103 | 117 |
| Tax % | 195% | -21% | 87% | 30% | 23% |
| Net Profit | 7 | 5 | 6 | 54 | 69 |
| EPS in Rs | 2.99 | 2.17 | 2.24 | 19.07 | 24.09 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
Recommendation:
14 Comments
Leave a Reply
You must be logged in to post a comment.
Majesco Buyback Dates Announced:-
Tender Dates:- 27 Nov. 2020 – 11 Dec. 2020
Payment /Settlement Date:- 22 Dec. 2020
So, expect announcement for dividend during Jan’21 period also the price has shot up and left very little margin for profit from dividend route .If you are planning to buy now. Please avoid.
Parth G Majesco buy before record date for dividend
If you are an retail investor and trying to enter now you can go ahead but there are some conditions:-
a> This suggestion is not for buyback participation.
b>You will have to hold till Jan’21.
c> You will have to be in the NIL tax bracket or less than 10% bracket at the most.
The company will announce the dividend within Dec’20- Jan’21 after the buyback.Then after the dividend ex-date is over the share will correct to 40-50. Then you will have to sell the share within March’21 at the most and book a loss which you can show as capital loss in your IT filling which you can carry forward for adj. in your profits for next year and the dividend will not be taxed since you are in the NIL bracket. (for TDS fill 51G/51H as applicable and you will get the full dividend without any deduction) .Consult your CA/FA before taking any action on my strategy as I will not be liable for any fallout from the same.
Yes, also if you have some DP in nae of family, which are non taxable, you can buy.
I still believe it would show Rs 800/- before buyback record date and would be a very good rate to enter…
If the dividend is 1000 rs why hasn’t it shot up. Considerable
And shouldn’t it crash after dividend is given
Why just 40-50rs
Wait for the dividend announcement in Dec’20-Jan’21 .Then it will react accordingly.
40-50 rs due to property & real estate holdings. kuch toh homework karliya karo.. aashish ji.
Hello parthg
Ex dividend
Stock crashed to levels I presumed
It will still go down to its face value that is 5
The property holdings worth would be rs 5 per share only
Mostly you could have benefitted only by saving on stcg
That too when you are able to sell the share and u fall in 0 tax bracket
Going forward I think there will only be sellers and no buyers until it comes to rs 5
So not 40 to 50 but huge fall as I asked
This is a Different class!!!
The current price is Rs 852/- while the buyback price is Rs 845/-..
Why?
Because of the US sales company is sitting on cash and had decided to give dividend of Rs 1000/- + to the remaining shareholder, after buyback..
Tax implications…
Buyback – No Tax
Dividend – Tax on the receivers..
So if you are a non tax payer than you have some thing still at Rs 850/-..
Company has approved the proposal to buyback upto 74,70,540 fully paid equity shares of Rs. 5/- each of the Company at a price of Rs. 845/- Price”), for an aggregate amount not exceeding Rs. 631,26,06,300/.
Thanks for starting on Majesco.
Those who are not aware…
Majesco is mostly active in USA and is a holding company of Majesco listed in Nasdaq. Now that company has been sold and Majesco India has received a huge windfall of around Rs 1200+ per share. The company is surely going to be closed in 6 to 9 months, and buyback is the way to distribute money received by sales of Majesco US.
Any addition?
Are you saying Majesco India will be closed down after buyback & Dividend Distribution ? And if yes will they delist the remaining shares after Jan’21 once the dividend distribution is also completed .Please share your opinion.