MPS, a leading global provider of platforms, and content, and learning solutions for the digital world, was established as an Indian subsidiary of Macmillan (Holdings) Limited in 1970. The long service history as a captive business allowed MPS to build unique capabilities and talents through strategic partner programs. MPS is now a global partner to the world’s leading enterprises, learning companies, publishers, libraries, and content aggregators. After change of majority stake in 2011-12 and with an entrepreneurial mindset MPS developed significant momentum as a result of consistent reinvestment in the business and seven successful acquisitions in the same number of years. MPS is listed on the major stock exchanges in India with a market capitalization upward of INR 700 crores. More than 2,700 professionals power MPS across seven delivery centers in India, four offices in Europe, and six client-servicing offices in the US.
MPS Buyback 2021
Buy Back Offer Deal:
|Buyback Type:||Tender Offer|
|Buyback Record Date:||Dec 17 2021|
|Buyback Opening Date:||Jan 14 2022|
|Buyback Closing Date:||Jan 28 2022|
|Buyback Offer Amount:||₹ 85 Crores|
|Date of Board Meeting approving the proposal:||Oct 27 2021|
|Date of Public Announcement:||Oct 27 2021|
|Buyback Offer Size:||5.23%|
|Buyback Number of Shares:||9,44,444|
|Price Type:||Tender offer|
|Buyback Price:||₹ 900 Per Equity Share|
Details of Buyback:
The buyback of fully paid-up equity shares having a face value of INR 10 (Indian Rupee Ten only) each (“Equity Shares”), not exceeding 9,44,444 (Nine Lakhs Forty Four Thousand Four Hundred and Forty Four only) Equity Shares (representing upto 5.23% of the total paid up Equity Share capital of the Company as on 31st March, 2021) at a price of INR 900 (INR Nine Hundred only) per Equity Share payable in cash for an aggregate amount not exceeding INR 85,00,00,000 (INR Eighty Five Crores only), excluding tax payable under Income Tax Act, 1961 and any expenses incurred or to be incurred for the buyback viz. brokerage costs, fees, turnover charges, taxes such as tax on buyback, securities transaction tax and goods and services tax (if any), stamp duty, printing and dispatch expenses, if any, filing fees to SEBI, advisor/legal fees, public announcement publication expenses and other incidental and related expenses and charges (“Transaction Costs”) (such maximum amount hereinafter referred to as the “Buyback Offer Size”) which represents 21.50% and 20.35% of the fully paid-up Equity Share capital and free reserves as at September 30, 2021, (“being the latest standalone and consolidated un-audited & limited reviewed condensed interim financial statements as on September 30, 2021, available after the audited financial statements for the period ended March 31, 2021.
Salient financial parameters:
|Particulars (in Cr)||Mar 2017||Mar 2018||Mar 2019||Mar 2020||Mar 2021|
|Profit before tax||103||102||107||81||93|
|EPS in Rs||37.83||37.71||40.84||32.15||32.44|
How to Participate in buyback?
1. Firstly to be eligible for the buyback the investor should have shares of MPS Ltd Buyback Offer 2021 in demat or physical form as on record date [17.12.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [To be announced] by selling your shares through your broker on NSE or BSE. [14.01.2022 to 28.01.2022] 3. Then on [Not Announced], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.[08.02.2022]
Profit from the buyback on the bases of acceptance Ratio:
Buy 222 shares at CMP of Rs.703 [2,00,000/ 900= 222]
|Amount Invested in Buyback||156066||156066||156066||156066|
|No. of Shares buyback||73||111||166.5||222|
Review and Recommendation of MPS Ltd Buyback 2021 by IZ team is: 5/10 A very small buyback of just 85 Crores. Arbitrage of 23% available which is very good.