Mindteck Buyback 2022
Mindteck is an engineering and technology solutions company devoted to delivering knowledge that matters to help clients compete, innovate and propel forward along the digital continuum. The company, established in 1991, serves a top-tier Fortune 1000 clientele, start-ups, leading universities, and government entities around the globe.
Buy Back Offer Deal:
| Buyback Type: | Open Market |
| Buyback Opening Date: | Aug 24 2022 |
| Buyback Closing Date: | Feb 23 2023 |
| Buyback Offer Amount: | ₹ 13 |
| Date of Board Meeting approving the proposal: | Aug 11 2022 |
| Date of Public Announcement: | Aug 11 2022 |
| Buyback Offer Size: | 9.99% |
| Buyback Number of Shares: | 7611111 |
| Price Type: | Open Market |
| FV: | 10 |
| Buyback Price: | ₹ 180 Per Equity Share |
Details of Buyback:
Board has approved Buyback for an amount not exceeding Rs. 13.70 Crore at a price not exceeding Rs. 180/- which represents 9.99% and 9.02% of the total paid-up equity share capital and free reserves. The buyback is via Open Market Buyback.
Salient financial parameters:
| Particulars in Cr. | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 | Mar-21 | Mar-22 |
| Sales | 312 | 342 | 297 | 299 | 276 | 287 | 299 |
| Expenses | 291 | 331 | 296 | 295 | 272 | 267 | 278 |
| Operating Profit | 21 | 11 | 1 | 4 | 4 | 20 | 21 |
| OPM % | 7% | 3% | 0% | 1% | 2% | 7% | 7% |
| Other Income | 2 | 3 | 0 | 3 | -59 | 5 | 23 |
| Interest | 0 | 0 | 1 | 1 | 2 | 2 | 1 |
| Depreciation | 2 | 2 | 1 | 2 | 7 | 6 | 5 |
| Profit before tax | 21 | 11 | 0 | 4 | -64 | 16 | 38 |
| Tax % | -25% | 19% | -4608% | 37% | -1% | 33% | 13% |
| Net Profit | 26 | 9 | -6 | 3 | -65 | 11 | 33 |
| EPS in Rs | 10.3 | 3.66 | -2.21 | 1.07 | -25.29 | 4.24 | 12.95 |
| Dividend Payout % | 10% | 27% | -45% | 92% | 0% | 0% | 8% |
How to Participate in buyback?
In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Mindteck ” announces buyback plan of its shares up to value of Rs 180, it means that the company will be purchasing shares of "Mindteck " from the open market at a price not exceeding Rs.180 per share.
Scenario 1- If the share price is below Rs. 180 in that case, the company will put buy order at Current Market Price and purchase shares.
Scenario 2- If the share price is above Rs. 180, in that case, the company will put buy order at Rs. 180 only and if someone is ready to sell at Rs180 or less then only company will get back shares.
Profit from the buyback on the bases of acceptance Ratio:
As it is an open market buyback, so arbitrage is available
Recommendation:
Open Market Buyback.
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Please note that the Mindteck buyback is through the open offer, not through the tender route.
Suraj limited buyback @77 record date 20 august 22
CMP 72.5
Not attractive