NIIT Technologies Limited Buyback 2019

NIIT Technologies is a leading global IT solutions organization, enabling its clients to transform at the intersect of unparalleled domain expertise and emerging technologies to achieve real-world business impact.

The Company focuses on three key verticals: Banking and financial services, Insurance, Travel, and Transportation. This domain strength is combined with leading-edge capabilities in Data & Analytics, Automation, Cloud, and Digital.

NIIT Technology has over 10,000 employees serving clients across the Americas, Europe, Asia, and Australia.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 12 2020
Buyback Opening Date: May 29 2020
Buyback Closing Date: Jun 11 2020
Buyback Offer Amount: ₹ 336 Crores
Date of Board Meeting approving the proposal: Dec 23 2019
Date of Public Announcement: Dec 23 2019
Buyback Offer Size: 3.0%
Buyback Number of Shares: 19,56,290
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 1725 Per Equity Share

Details of Buyback:

Subject to the approval of the shareholders by means of a special resolution through postal ballot and regulatory approval(s) as may be required, buy-back of up to 19,56,290 fully paid equity shares of face value of Rs. 10/- each at a price of up to INR 1,725 per share aggregating up to INR 337.46 Crores which represents 20.23% of the paid-up equity share capital and free reserves of the Company through " Tender Route". Promoters have also shown an intention to participate in the buyback.

Salient financial parameters:

Particulars(Cr.) 2019 2018 2017 2016 2015
Revenue 2,153.40 1,761.60 1,628.92 1,508.91 1,368.51
Expense 1,704.90 1,403.00 1,341.23 1,198.78 1,130.64
OPM % 22.43 21.79 18.04 21.13 17.67
Net Profit 299 226.2 164.9 194.01 147.59
NPM % 14.96 13.74 10.34 13.22 10.96
Equity 61.8 61.5 61.36 61.19 61.04
EPS 48.55 36.83 26.9 31.75 24.25
Source: BSE

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of NIIT Technologies Limited Buyback 2019 in demat or physical form as on record date on [ 12.03.2020 ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 29.05.2020 to 11.06.2020 ] by selling your shares through your broker on NSE or BSE. 3. Then on [ 13.06.2020 ], the settlement will be done for accepted shares and unaccepted shares will be returned to your demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 115 Shares at CMP of Rs.1577( 2,00,000/1725=115)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,82,841 1,82,241 1,82,241 1,82,241
No. of Shares buyback 38 58 87 115
BuyBack Profit 5,663 8,580 12,876 17,020
Profit 3.10% 4.71% 7.07% 9.34%

Recommendation:

Review and Recommendation of NIIT Technologies Limited Buyback 2019 from our side is: Rating: 4/10 (i) ~19 Lakh shares are available in the buyback. (ii) Retail quota ~2.85 Lakh shares. (iii) Share capital up to Rs. 2 Lacs ( as on 30.09.2019) is ~30 Lakh (iv) Add ~10 lakh more share after the buyback. So total shares approx ~40 Lakh (v) Approx. Acceptance Ratio = 7-10%. Fair: 1-5 Good: 5-7 Excellent: 7-10

    Entertainment 5 share against 16 shares In Niit BB- Source

    31% of Entitlement in NIIT Tech.

        Dishman Carbogen fall from high price 396 in 2018 to 80 in news of IT search of group companies. But no effect on financial position.

        Board meeting is held tomorrow, on 16th Jan for buy back and Dec result. According to moneycontrol, buyback is likely at Rs. 150.
        In short term return may be more than double.