Navneet Education Limited BuyBack 2021

Navneet Education Limited Buyback

(i) The company has emerged as the preferred brand for educational products among teachers and students. The immensely popular products like Vikas workbooks, Gala practice books, YouVa full-scapes, are hot favorites amongst the young segment of India. These products are bestsellers not just because of their superior quality but also because of the nostalgic association of 90’s kids.

(ii) In December 2016, Company acquired Encyclopedia Britannica (India) Pvt. Ltd. for publishing CBSE Textbooks. With this acquisition, Navneet will focus on serving the regional teaching and learning needs with supplemental digital solutions.

(iii) Navneet reaches students of all age groups, teachers, parents, coaching institutions, and the community at large.

(iv) The products are smartly designed to keep them functional, both in the terms of educational as well as marketing aspects. Products and brands can be advertised on the cover pages of bestselling products. Here’s a list of products where advertising opportunities are available.           

Buy Back Offer Deal:

Buyback Type: Open Offer
Buyback Offer Amount: ₹ 50 Cr
Date of Board Meeting approving the proposal: May 27 2021
Date of Public Announcement: May 27 2021
Buyback Offer Size: 5.40%
Price Type: Open Offer
FV: 2
Buyback Price: ₹ 100 Per Equity Share

Details of Buyback:

On 27.05.2021 the company has approved the buy-back by the Company of its equity shares of face value of Rs. 2/-(Rupees Two Only) each ("Equity Shares") from the open market through the stock exchange mechanism as prescribed under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended ("Buyback Regulations") and the Companies Act, 2013, as amended ("Companies Act"), and other applicable rules law, at a maximum price of Rs. 100/- (Rupees One Hundred only) per Equity Share ("Maximum Buyback Price") payable in cash, for an aggregate maximum amount of up to Rs.50,00,00,000/- (Rupees Fifty Crores Only), which excludes any expenses incurred or to be incurred such as filing fees payable to the Securities and Exchange Board of India, advisors' fees, stock exchange fee for usage of their platform for Buyback, brokerage, applicable taxes such as buyback tax, securities transaction tax, and Goods and Services Tax, stamp duty, public announcement publication expenses, and other incidental and related expenses ("Transaction osts") ("Maximum Buyback Size"), which represents 4.83% and 5.40% of the total paid-up Equity Share capital and free reserves (including securities premium account.

Salient financial parameters:

Particulars (in Crores) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 974 956 1,168 1,203 1,442 1,496
Expenses 735 749 892 979 1,170 1,180
Operating Profit 239 207 275 223 272 315
OPM % 25% 22% 24% 19% 19% 21%
Other Income 3 17 22 26 23 22
Interest 11 5 6 9 17 19
Depreciation 31 30 28 31 33 47
Profit before tax 200 190 264 210 245 272
Tax % 35% 37% 31% 39% 38% 27%
Net Profit 130 107 171 127 153 197
EPS in Rs 5.47 4.51 7.3 5.45 6.68 8.62
Dividend Payout % 40% 49% 34% 28% 15% 35%
Source: Screener.in

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: “Navneet Education ” announces buyback plan of its shares up to value of Rs 100, it means that the company will be purchasing shares of "Navneet Education " from the open market at a price not exceeding Rs.100 per share. Scenario 1- If the share price is below Rs. 100 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. 100, in that case, the company will put buy order at Rs. 100 only and if someone is ready to sell at Rs.100 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio: 

NA

Recommendation: 

NA

Registrar Contact Details:

Link Intime India Pvt. Ltd. C 101, 247 Park, L.B.S. Marg, Vikhroli (West) Mumbai - MH - 400083 Website: www.linkintime.co.in

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