Netlink Solutions (India) Ltd Buyback Offer Feb 2018

Netlink Solutions (India) Ltd Buyback

Netlink Solutions (India), incorporated in 1984, offers successful web-based solutions for strategic business management. The company was earlier known as VGR Constructions, it got its present name on March 10, 2002.
In the year 2007, the launch of the magazine’s new avatar, the ‘Gifts & Accessories E-Magazine’ evoked a pleasant and positive response with portals easy2source.com and corporategiftseasy2source.com easing the magazine online. The treasury management and administration division, with an eye on the heated stock market, recommended investment in private equity. Aditya Infotech has consolidated its position as one of the leading search engine marketing companies. The B2B portal www.easy2source.com has established itself as a top business and trade information source with popular search engines like Google and Yahoo participating in the form of advertisement in the portal.
In the year 2008, eight new portals were successfully launched under easy2source on a wide array of subjects such as electrical, electronics, herbs and spices, jewellery, leather, material handling, foods and beverages, and automobiles,
Business area of the company
The company’s principal activity is to provide information media and software development services.
Divisions
Gifts & Accessories magazine
Aditya Infotech
easy2source.com
Treasury management and administration
Software technology park (STP)
Netlink Solutions (India) Limited Board is going to consider a share buyback in board meeting which is planned on Feb 09, 2018.
Feb 09, 2018 – Netlink Solutions (India) Ltd (BSE:509040, NSE:) board has approved a proposal for buyback of up to 7.41 lakh shares at Rs 17 per share, aggregating Rs 1.26 crore

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: May 21 2018
Buyback Opening Date: Jun 19 2018
Buyback Closing Date: Jul 02 2018
Buyback Offer Amount: ₹ 1.26
Date of Board Meeting approving the proposal: Feb 09 2018
Date of Public Announcement: Feb 09 2018
Buyback Number of Shares: 7,41,750
FV: 10
Buyback Price: ₹ 17 Per Equity Share

Details of Buyback:

The equity shareholders have approved the Buy Back of up to 7,41,750 fully paid-up Equity Shares from the existing shareholders / beneficial owners of Equity Shares of the Company, on a proportionate basis, through the tender offer process, in accordance with the provisions contained in Article 12 of the Articles of Association of the Company, Section 68, 69, 70 and all other applicable provisions, of the Companies Act, 2013 and the provisions contained in the Buy Back Regulations subject to approval(s) as may be necessary from statutory authorities including but not limited to Securities and Exchange Board of India (“SEBI”), BSE Limited (“BSE”), Reserve Bank of India, etc. at a price of Rs. 17/- (Rupees Seventeen only) per Equity Share (“Buy Back Price”) payable in cash, for an aggregate maximum amount of up to Rs. 1,26,09,750/- (Rupees One Crore Twenty-Six Lakhs Nine Thousand Seven Hundred Fifty only). The Buy-Back Size represents less than 25% of the total paid-up equity share capital and free reserves as per the audited balance sheet of the Company as at March 31, 2017, which stood at Rs. 9,78,78,583/.

Salient financial parameters:

Particulars      Pre-Buyback      Post- Buyback
(i) Equity Share Capital (Rs.) 2,96,70,000 2,22,52,500
(ii) Equity Shares 29,67,000 22,25,250
(iii) Reserves & Surplus 6,82,08,583 6,30,16,333
(iv) Net worth (Rs. in lakhs) 9,78,78,583 8,52,68,833
(v) Profit including exceptional items (Rs.) 55,28,049 55,28,049
(vi) Profit excluding exceptional items (Rs.) 55,28,049 55,28,049
(vii) Return on Net worth (%) (including exceptional items) 5.65% 6.48%
(viii) Earnings per Share (Rs.) (including exceptional items ) 1.86 2.48
(ix) Book Value per Share (Rs.) 32.99 38.32
(x) Total Debt*/Equity Ratio (Total Debt/Networth) 0.01 0.01

Source of funds for the Buyback:

(a) Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buy-Back would be Rs. 1,26,09,750/ (Rupees One Crore Twenty-Six Lakhs Nine Thousand Seven Hundred Fifty only). (b) The Company does not propose raising debt for buying back Shares. However, the Company may continue to borrow funds in the ordinary course of its business, if required. (c) The Company shall transfer from its free reserves or securities premium account, a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the capital redemption reserve account, and the details of such transfer shall be disclosed in its subsequent audited financial statements.

Shareholding Pattern Pre and Post buyback:

 Particulars        Pre-Buyback      Post- Buyback
 Equity Shares % Equity Shares %
(i) Promoters and Members of Promoter Group 14,52,885 48.97% 14,52,885 65.29%
Public- Body Corporates 1,99,619 6.73% 7,72,365 34.71%
7,218 0.24%
-- --
13,07,218 44.06%
60 -
15,14,115 51.03%
 Total 22,550,000 100.00 16,950,000 100
 

How to Participate in buyback?

How to Participate in

Netlink Solutions (India) Limited Buyback

Offer: 1. Firstly to be eligible for the buyback the investor should have shares of Netlink Solutions (India) Limited in demat or physical form as on record date 21 May 2018. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [] by selling your shares through your broker on NSE or BSE. 3. Then on [.], 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:

Netlink Solutions Limited Buyback offer calculation for an investment of Rs 2,00,000 @ 6.50 per share
% Share Accepted No of Shared Accepted Gain from Buyback Offer
33% 10154 Rs 101540
50% 15384 Rs 153840
75% 23077 Rs 230770
100% 30769 Rs 307690

Recommendation:

Review and Recommendation of

Netlink Solutions (India) Limited Buyback

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

Registrar Contact Details:

Adroit Corporate Service (P) Limited 9, Jaferbhoy Industrial Estate, Makawana Road, Marol Naka Mumbai - 400059 Website: www.adroitcorporate.com

Company Contact Details:

Netlink Solutions (India) Limited 507 Laxmi Plaza, Laxmi Industrial Estate, Off New Link Road, Mumbai, MH - 400053 Website: www.nsil.co.in