MOIL Limited Buyback Offer Feb 2018

MOIL is a Schedule “A” Miniratna Category-I Company. It was originally incorporated as Manganese Ore (India) Limited in the year 1962. Subsequently, a name of the Company was changed from Manganese Ore (India) Limited to MOIL Limited during the financial year 2010-11.
MOIL was originally set up in the year 1896 as Central Province Prospecting Syndicate which was later renamed as Central Provinces Manganese Ore Company Limited (CPMO), a British Company incorporated in the UK. In 1962, as a result of an agreement between the Government of India and CPMO, the assets of the latter were taken over by the Government and MOIL was formed with 51% capital held between the Govt. of India and the State Governments of Maharashtra and Madhya Pradesh and the balance 49% by CPMO. It was in 1977, the balance 49% shareholding was acquired from CPMO and MOIL became a 100% Government Company under the administrative control of the Ministry of Steel.
MOIL Ltd(BSE: 533286 | NSE: MOIL ) Board has approved a proposal for buyback of up to 87.66 lakh shares at Rs 240 per share, aggregating Rs 210.4 cr which is 3.29% of a total number of paid-up equity shares.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 22 2018
Buyback Opening Date: Mar 07 2018
Buyback Closing Date: Mar 20 2018
Buyback Offer Amount: ₹ 210.4 Cr
Date of Board Meeting approving the proposal: Feb 06 2018
Date of Public Announcement: Feb 06 2018
Buyback Offer Size: 3.29%
Buyback Number of Shares: 87.66 Lacs
FV: 10
Buyback Price: ₹ 240 Per Equity Share

Details of Buyback:

The Board of Directors of MOIL Limited on February 5, 2018 passed a resolution to buyback Equity Shares of the Company not exceeding 87,66,720 (Eighty Seven Lakh Sixty Six Thousand Seven Hundred Twenty) fully paid-up Equity Shares of face value 10 each from all the existing shareholders / beneficial owners of Equity Shares of the Company as on Record Date, on a proportionate basis, through the “Tender Offer” process, at a price of 240 (Rupees Two Hundred Forty only) per Equity Share payable in cash, for an aggregate consideration not exceeding of 210,40,12,800 (Rupees Two Hundred Ten Crore Forty Lakh Twelve Thousand Eight Hundred only).

Salient financial parameters:

Ratio Standalone
Parameters Pre-Buyback Post- Buyback*
Net worth (in Crore) 2,80,535.06 2,59,494.94
Return on Net worth (%) 10.90 11.79
Earnings Per Share () 20.21 11.87
Book Value per Share () 210.63 100.73
P/E as per the latest audited financial results 15.53 26.44
Total Debt/ Equity Ratio 0.00 0.00

Source of funds for the Buyback:

Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback of 87,66,720 (Eighty Seven Lakh Sixty Six Thousand Seven Hundred Twenty) Equity Shares at a price of ` 240 (Rupees Two Hundred Forty only) per Equity Share would be 210,40,12,800 (Rupees Two Hundred Ten Crore Forty Lakh Twelve Thousand Eight Hundred only) (excluding transaction costs viz. brokerage, applicable taxes such as securities transaction tax, service tax, stamp duty, etc.)

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of MOIL Limited in demat or physical form as on record date 22 February 2018. 2. Once you have shares in demat, you can participate in the buyback process which is opening from 07 March to 20 March 2018 by selling your shares through your broker on NSE or BSE. 3. Then on 02 April 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:

MOIL Ltd Buyback offer calculation for an investment of Rs 2,00,000 @220 per share
 
% Share Accepted No of Shared Accepted Gain from Buyback Offer
33% 300 Rs 6000
50% 454 Rs 9080
75% 682 Rs 13640
100% 909 Rs 18180
(a) 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.
Category Entitlement Ratio of Buyback Per Equity Shares Entitlement Ratio of Buyback in %
Reserved Category 32 Equity Shares out of every 525 Equity Shares 6.10%
General Category 29 Equity Shares out of every 856 Equity Shares 3.39%

Recommendation:

Rating: 4/10 Fair: 1-5 Good: 5-7 Excellent: 7-10 Final Acceptance Ratio

Registrar Contact Details:

Bigshare Services Private Limited 1st Floor, Bharat Tin Works Building Opposite Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai – 400 059 Phone No. 022 62638200 Fax. 022 62638299 buybackoffer@bigshareonline.com Website: www.bigshareonline.com

Company Contact Details:

MOIL Bhawan, 1- A, Katol Road, Nagpur - 440013, Maharashtra. Phone No. 0712 2806208/182 Fax: 0712 2591661 Email: compliance@moil.nic.in Website: www.moil.nic.in