NIIT BuyBack 2020

Established in 1981, NIIT Limited, a global leader in Skills and Talent Development, offers multi-disciplinary learning management and training delivery solutions to corporations, institutions, and individuals in over 40 countries. The company ranks among the world’s leading training companies owing to its vast, yet comprehensive array of talent development programs.

With a strong focus on assuming a leadership role in the Digital Learning World and to further accelerate NIIT’s growth and profitability, the company has charted a focused business strategy to address the Digital Transformation needs for individuals and corporate customers by offering training and consulting to help them re-invent themselves & their organizations.

Further, NIIT entered into a strategic partnership with UP! Your Service, the global leader in creating cultures of service excellence worldwide, to implement a culture of service excellence across organizations. The partnership with UP! Your Service is a strategic move to expand NIIT’s Corporate Learning portfolio to deliver internal and external cultures of Service Excellence. In addition to its cutting-edge Managed Training Services (MTS), NIIT will now offer services like Service Culture Indicator, Service Leader Workshops, and Service Excellence Workshops to take organizations to a new level of service that is enabled by fundamental principles and actionable models.

The Training.com learning platform is a pioneering initiative for advanced career programs, which are delivered live by industry experts in an immersive and interactive online mode, combining instructor-led classrooms with the convenience of accessing the training sessions from anywhere. The programs are targeted at working professionals who want to take their careers to the next level by enhancing their knowledge of the latest concepts through programs offered from premier institutes like IIM Calcutta, DMI Ireland, and edX.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 24 2021
Buyback Opening Date: Apr 12 2021
Buyback Closing Date: Apr 28 2021
Buyback Offer Amount: ₹ 237 Crores
Date of Board Meeting approving the proposal: Dec 24 2020
Date of Public Announcement: Dec 24 2020
Buyback Offer Size: 6.798%
Buyback Number of Shares: 9,875,000
Price Type: Tender Offer
FV: 2
Buyback Price: ₹ 240 Per Equity Share

Details of Buyback:

The company approved a proposal for buyback of up to 9,875,000 fully paid-up Equity Shares of the Company of face value Rs. 2 each, being 6.798% of the total issued and paid-up equity share capital of the Company as per the audited consolidated and standalone condensed interim financial statements ("Audited Condensed Interim Financial Statements") as on 31.03.2020, for an aggregate amount not exceeding Rs. 237 Cr, which is not exceeding 25% of the aggregate of the total issued and paid-up equity share capital and free reserves as per the Audited Condensed Interim Financial Statements of the Company as at and for the period as on 31.03.2020 at Rs. 240 per share via " Tender Route".

Salient financial parameters:

Particulars(Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 953 1,002 845 850 865 889
Expenses 853 930 785 788 799 855
Operating Profit 100 72 60 62 66 34
OPM % 10% 7% 7% 7% 8% 4%
Other Income -142 8 74 84 104 1,429
Interest 17 24 28 22 23 20
Depreciation 107 49 46 40 33 60
Profit before tax -166 7 61 84 114 1,383
Tax % -1% 50% 30% 24% 24% 4%
Net Profit -139 67 41 62 86 1,327
EPS in Rs -8.39 4.06 2.47 3.75 5.17 93.81
Source: Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of NIIT Limited Buyback 2020 in demat or physical form as on the record date [24.02.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [12.04.2021 to 28.04.2021]  by selling your shares through your broker on NSE or BSE. 3. Then on [07.05.2021] , 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:

Buy 833 Shares at CMP of Rs. 199 [2,00,000/240=833)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,65,767 1,65,767 1,65,767 1,65,767
No. of Shares buyback 249 416 624 833
BuyBack Profit 10209 17,056 25,584 34,153
Profit 6.1% 10.2% 15.4% 20.6%

Recommendation:

Review and Recommendation of NIIT Limited 2020 Buyback 2020 by IZ team is: 4/10 [Current ER = 7%] Better to wait for the price to fall below 180 to enter in the script for buyback purpose. This time size of buyback is less as compared to last year which will affect the Acceptance Ratio.

64 Comments

    Entitlement ration for buyback of NIIT is 11% for retail investor. What can be acceptance ratio?

      In last buy back, the amount was high and price low-AR 64%.
      This time the amount is low and price high. We can expect AR around 40%. This is just assumption without any calculation.

    Buyback Opening Date Monday, April 12, 2021
    Buyback Closing Date Wednesday, April 28, 2021
    Last date of receipt of completed tender form and other specified document Friday, April 30, 2021by 5.00 p.m.
    Last date of settlement of bids on the Stock Exchanges Friday, May 7, 2021
    Last date of return of unaccepted Equity Shares by Stock Exchanges to Eligible Shareholder/Stock Broker Friday, May 7, 2021

    NIIT is going down and down. Right now it is 141.25. Anybody any idea why?

      MFs decreased their shareholding last quarter
      Degrowth in Revenue and Profit
      Promoter decreasing their shareholding
      Declining Net Cash Flow
      Companies not able to generate net cash
      Major fall in TTM Net Profit Weak performer
      Stock lost more than 20% in 1 month
      Weak Momentum: Price below Short, Medium and Long Term Averages

      SOURCE: MONEYCONTROL

      Brokerages are giving sell ratings to this script since last two months

      My call is to sell now and recover from a different trade, as the stock will touch 100 by next week. Technically this stock is weakest in S&P BSE SmallCap

      I don’t think they care about shareholders, they delayed the announcement of record date to a month, this is so disgraceful to giving back to the investors. I bought shares back in 2019, and now after this bad CORPORATE GOVERNANCE I sold yesterday with a profit of 80k, SEBI should have acted upon this unusual delay! MARKET IS TOO VOLATILE TO HOLD ON SELL NOW IF YOU BOUGHT FOR BUYBACK!
      Goodluck Pals!

        Yes and insiders exited recently, I assume there’s something wrong!

    NIIT LTD : A CURSE?

    Unfair Share Dilution in recent times.

    Promoter decreasing their shareholding

    Declining Net Cash Flow : Companies not able to generate net cash

    Major fall in TTM Net Profit

    NIIT in today’s Board Meeting neither declared dividend nor Buy Back record date. The results are very good.
    Any news about record date?

    Umesh sir what is expected ar of niit and ..if limited money available then which would you consider between nalco buyback and niit buyback with limited risk capability???

      Bro fundamentally niit is better
      If it cracks a bit say it comes to 185-190
      Buy niit
      Otherwise not much opportunity in both of these
      As the reward is limited (10%) but risk is high(valuations are high currently)
      Market is quite volatile

    I have purchased a half quantity @Rs.190/-. I am waiting for the next target price of Rs. 180/- to buy the remaining half quantity as this is 33% lower than buyback price of 240 so the chances of it going below it is very less before record date. Kindly share your views

    My view on NIIT is keep only 10% shares i.e. the expected entitlement ratio and sell 90% after record date.
    Buy 1000 shares at current price ie 193. Assuming 900 shares are sold @193 after record date and 100 shares tendered @240 in buyback
    So profit on investment of 193000 will be Rs4700

    NIIT Ltd is 188 now. Is it a good idea to start buying slowly ? Only from buyback perspective?

      I have purchased a small quantity @Rs.189/-. I am waiting for the next target price of Rs. 184/- to enter again. In my opinion, you may also purchase in three instalments at your expected prices depending upon your risk appetite. Thank you.

    NIIT is coming in range now for buying….. Keep an eye….good to buy around 180 levels if market falls.

    I request the authority concerned to make arrangements to open a separate page for discussion of GAIL buyback. Please do at the earliest.

    It was stated that the price is high and one should wait for the price to fall below Rs.180 to enter into the scrip for the buy back. Date of public announcement for buy back was 24.12.2020 and on that date the share price closed at Rs.200.45 and till date the share price has touched a low of Rs.199.30 only once on 15.01.2021 when the Nifty has lost 1.11%. So there is a remote possibility of the price to fall below Rs.200 and reach a range of Rs.190-180 unless the market experiences high volatility.
    Market wizard and Umesh Paliwalji and other senior members, please respond whether we can participate in the buy back with the present price range of Rs.199-203? Whether ER and AR will be like that of last year?

      Last year, the buyback price was Rs.125/- and the amount of buyback was Rs.335 crores. Final AR for retail investors was 64%. Now, the buyback price is Rs.240/- and the amount of buyback is Rs.237 crores only. Final AR, as we fear, may be around 35% to 40% only. You may try your luck to purchase small quantities at the levels of Rs. 195, Rs. 190 and Rs. 185, if available before eligible date of purchase for Record Date. Other wise, there is no wrong in skipping. This is my personal opinion and you may take your own decision depending upon your risk appetite. Thank you.

    Engineers India Limited buyback opens on Jan 22nd and closes on Feb 5th. Settlement date Feb 15th. AR hopefully would be more than 70%. Thanks.

    last time 125 pe buyback huwa tha uske bad to ye share kya bhaga hai 206 tak aagaya abi 240 ka buyback

    This query is out of Topic !!!

    All members please advise on the buy back of INdian Toners & Developers as CMP is 135.20 and buyback price is 160

    Record date is 15 January 2021

    Any idea what is going to be the ER and AR
    Should we take risk ???

    market wizard any up comming buy back pls show new page & your valuable guidance archid play buy back announce 06/01/2021

    Is the CMP good to enter for this buyback or can we expect downside in the near future?

    Please advise guys.

      Don’t enter now
      Wait for it to come down
      Acceptance will be low as buyback size is small

      Yes. If it is NIIT you are planning for buyback then you will be considered for buyback as the record date is not yet announced. As per recommendation of this site they are saying ya to wait until price reaches 185 but if you have done your study and want to spend more on buying the shares now then you are most welcome to do so.

      The problem is you are not sure now how shares you buy will be taken back by NIIT.

      So think before you leap!!!

    The Buyback is subject to the approval of the shareholders by passing a special resolution through postal ballot.

      Umesh Saab could you please let me know the ER of EIL ?

      Is it worth it to buy the shares @ 76 for buyback purpose ???

      Thank you in advance 🙏🏾

      The acceptance will be more than 60-70%
      Only issue is that upside is limited 10%
      While risk is considerable
      Market could go down anytime as it’s richly valued right now

        What about the opening date of the buyback

        When will it be announced…Any idea

        Let see if EIL will give gains and if market if is in bull mode then more gains !!!

    This time Entitlement likely to be around 8% in comparision to last year ER of 21.6%.
    Buyback size is also little small in terms of amount and significant less in terms of no. of shares (40%) to be buyback.
    So, this time likely AR (for Retail) would be around 25% in comparision to last year AR of 62%.

    NIIT Ltd – Buyback announced

    buyback price : 240/- per share
    buyback size : 237 crore rupees
    buyback mode : Tender Route

    Buyback size (No. of shares) : 98,75,000 shares

    Retail Quota : 14,81,250 share

      Thanks for the updates. What will be typical acceptance ratio and any chance market price to go up to 240.Thanks

    NIIT 2019 Buyback.

    Buyback price = 125, Buyback size = 335 Crores

    1. Date of announcement of buyback = 10.08.2019, *price* = 98

    2. Record date = 18.10.2019
    *Price* = 84

    3. Buyback date = 25.11.2019 to 06.12.2020

    Price on 25.11.2019 = 104
    Price on 06.12.2019 = 104.25

    4. Final AR = 64% for small holders and 36%.

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