Mangalam Organics Limited Buyback Offer Feb 2018

Mangalam Organics Limited Buyback

Mangalam Organics Limited Board has approved a proposal for buyback of up to 6.10 lakh shares at Rs 230 per share, aggregating Rs 14.03 crore which is 6.74

Company Overview
Mangalam Organics Limited (Formerly Dujodwala Products Limited) is a BSE listed company (stock code 514418) and are Prime Manufacturers of Camphor, Resin and Sodium Acetate. The company has a strong foothold in the pine chemicals Industry through its management who has been in the field for over 50 years. Mangalam Organics Limited is a government recognized export house with customers in Europe, USA, Africa and the Middle East Manufacturing plant was established in 1996 at Kumbhivali, Mumbai. Over the years the company has successfully increased its production, augmented its sales reach and maintained its superior quality for which it is renowned. Going forward Mangalam Organics Limited will continue to strive and innovate to meet the growing requirements of its valued customers.
Mangalam Organics Limited employs highly qualified and trained personnel to monitor, maintain and grow its manufacturing and sales activities of our various products(Camphor, Resin, Sodium Acetate, etc.).

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Apr 04 2018
Buyback Opening Date: Apr 23 2018
Buyback Closing Date: May 07 2018
Buyback Offer Amount: ₹ 14.03
Date of Board Meeting approving the proposal: Feb 02 2018
Date of Public Announcement: Feb 02 2018
Buyback Offer Size: 7.5%
Buyback Number of Shares: 6.10 Lacs
FV: 10
Buyback Price: ₹ 230 Per Equity Share

Details of Buyback:

Details of

Mangalam Organics Limited Buyback

are 1.The Board of meeting held on February 02, 2018, considered all relevant factors, including the strategic and operational cash requirements in the medium term, present debt to equity ratio of the Company, the increase in accumulated free reserves, considered it appropriate to allocate a sum not exceeding Rs. 14,03,00,000/- (Rupees Fourteen Crores and Three Lakh Only) for distributing to the Eligible Shareholders holding equity shares of the Company on the Record Date, through a Buyback. In line with the above and with an objective of enhancing the shareholder's returns, the Board decided to recommend Buyback at a price of Rs.230/- (Rupees Two Hundred and Thirty Only) per equity share for an aggregate consideration of up to Rs. 14,03,00,000/- (Rupees Fourteen Crores and Three Lakh Only) 2. The Company proposes to Buyback up to 6,10,000 Equity Shares of the Company representing 6.74% of the paid-up equity capital of the Company.

Salient financial parameters:

Parameters                           Standalone
Pre-Buyback Post- Buyback
(i) Net worth (in Crore)       5,767.77      4,364.77
(ii) Return on Net worth (%)        26.58       35.13
(iii)Earnings Per Share        12.70       13.62
(iv) Book Value per Share         63.71        51.70
(v) P/E         13.65        12.73
(vi) Total Debt/ Equity Ratio          0.60         0.80

Source of funds for the Buyback:

The fund for the Buyback will be sourced out of the free reserves of the Company. Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback of 6,10,000 Equity shares at a price of Rs. 230/- per Equity share would be Rs. 14,03,00,000/- (Rupees Fourteen Crores and Three Lakh only) excluding transaction cost, viz. brokerage, advisors’ fees, printing and dispatch expenses, applicable taxes such as securities transaction tax, goods and service tax, stamp duty and other related and incidental expenses.

Shareholding Pattern Pre and Post buyback:

Particulars Pre Buyback Post Buyback
 Equity Shares % Equity Shares %
(i) Promoters and Members of Promoter Group 42,46,211 46.91 42,46,211 50.29
(ii) Foreign Investors (including NRI, FIIs and MFs) 48,06,469 53.09 41,96,469 49.71
(iii) ) Financial Institutions / Banks & MF
(iv) Others (Public, Public Bodies Corporate, etc.)
 Total 90,52,680 100 84,42,680 100

How to Participate in buyback?

1.  Firstly to be eligible for the buyback the investor should have shares of Mangalam Organics Limited in demat or physical form as on Record Date 04 April 2018. 2.  Once you have shares in demat, you can participate in the buyback process which is opening from             23 April to 07 May 2018 by selling your shares through your broker on NSE or BSE. 3.  Then on 20 May 2018, 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:

Mangalam Organics Limited Buyback offer calculation for an investment of Rs 2,00,000 @205 per share
% Share Accepted No of Shared Accepted Gain from Buyback Offer
33% 322 Rs 8050
50% 488 Rs 12200
75% 732 Rs 18300
100% 976 Rs 24400
Categories in Buyback: (i) Reserved category- For Small Shareholders who hold Shares worth up to Rs. 2 Lacs before the Record date. (ii) General category - For all Shareholders other than Small Shareholders.

Recommendation:

Review and Recommendation of

Mangalam Organics Limited Buyback

from our side is: Rating: 3/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Registrar Contact Details:

Universal Capital Securities Private Limited 21/25, Shakil Nivas, Opp. Satya Saibaba Temple, Mahakali Caves Road, Mumbai - 400093 Maharashtra Website: www.unisec.in

Company Contact Details:

Mangalam Organics Limited Kumbhivali Village, Savroli Kharpada Road,,Taluka-Khalapur, Raigad District Maharashtra 410202