NLC India Limited Buyback offer 2018
(i) NLC India Limited, formerly Neyveli Lignite Corporation Limited, was incorporated on 14th November of the year 1956 as a private limited company under the house of Government of India (GOI). It went to public on 7th March of the year 1986.
(ii) The main core activity of NLC is lignite excavation and Power Generation using lignite excavated. NLC is having three lignite mines of the total capacity of 28.5 Million Tonnes per Annum at Neyveli, Tamil Nadu and one open cast lignite Mine of capacity 2.1 Million Tonnes per Annum at Barsingsar, Rajasthan. The company has five pithead Thermal Power Stations with an aggregate capacity of 3240 MW.
(iii) Further, NLC has also so far installed 17 Wind Turbine Generators of 1.50 MW each, aggregating to 25.5 MW, thereby increasing the overall power generating the capacity to 3265.50 MW. NLC forayed into renewable energy sector with the inauguration of a 10 MW Solar Photo Voltaic power plant in Neyveli, thereby increasing the overall power generating the capacity to 3275.50 MW.
(iv) Interesting facts about NLC India Limited
(a) A NAVRATNA company under the Ministry of Coal.
(b) since 1956 – more than 60 years of its glorious existence.
(c) Present Mining Capacity: 30.6 MTPA ( Lignite ).
(d) Present Power Generation Capacity (including JVs) : 3240MW (Lignite), 1000MW (Coal), 440MW (Solar), 51MW (Wind), Total : 4731MW.
(e) Projected Capital Expenditure (up to 2025) : Rs.1,28,983 Crore with a debt-equity ratio of 70:30.
(f) Moved from an only lignite mining and power generation Company to become an energy company.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Oct 24 2018 |
| Buyback Opening Date: | Nov 13 2018 |
| Buyback Closing Date: | Nov 28 2018 |
| Buyback Offer Amount: | ₹ 1248.99 |
| Date of Board Meeting approving the proposal: | Oct 09 2018 |
| Date of Public Announcement: | Oct 09 2018 |
| Buyback Offer Size: | 9.28% |
| Buyback Number of Shares: | 141,931,818 |
| FV: | 10 |
| Buyback Price: | ₹ 88 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Year | Revenue(cr) | PAT(cr) | EPS | P/E |
| 2016 | 7194 | 1204 | 7.18 | 11.14 |
| 2017 | 9235 | 2368 | 14.14 | 5.66 |
| 2018 | 9076 | 1848 | 12.09 | 6.62 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| (i) Amount Invested in Buyback | 193,600 | 193,600 | 193,600 | 193,600 |
| (ii) No. of Shares buyback | 726 | 1100 | 1650 | 2200 |
| (iii) BuyBack Profit | 9,438 | 14,300 | 21,450 | 28,600 |
| (iv) Profit(%) | 4.8% | 7.38% | 10.94% | 14.77% |
Recommendation:
Company Contact Details:
25 Comments
Leave a Reply
You must be logged in to post a comment.
So the buyback with profit!!!
Got 16K profit…
Happy 🙂
Nice!!!! Congrats!!!!
Congrats to the Participants… 100% Acceptance Ratio.
The price spiked up as the buyback was announced. However, even if somebody bought the share on 10.10.2018( the next day of announcement) at Rs. 81, the total gain is close to 8%.
YES !!! Thanks Market Wizzard!!
8% profit with 100% acceptance much better than 15% but with 30% acceptance…
I liked it !!
Shares reserved for Retail Category are close to 2.128 Cr.
Shares bid for till now -83,35,197
Great !!!
100% acceptance for retail!!!.
Although only 10% profit, still goo…
Acceptance seems to be coming 100%…
Good buyback, although not much gain in %age…
The ratio of the Buy-back: (i) in case of Small Shareholders, 49 Equity Shares
for every 65 Equity Shares held by such Small Shareholder on the Record
Date; and (ii) for Eligible Shareholders other than Small Shareholders, 39
Equity Shares for every 485 Equity Shares held by such Eligible Shareholder
on the Record Date ,
What is acceptance ratio ? does anyone knows ?
Considering, even if 70% (which is very unlikely, as normally 50% do) retail apply for buyback. the acceptance would be 100%.
Buyback is open from Today i.e. 13th? as stated above?
Yes. The company has filed Letter of offer yesterday in which it was mentioned that it will open up from 13.11.2018 to 28.11.2018. Please see the screenshot below.
https://d2un9pqbzgw43g.cloudfront.net/main/Screenshot_2018-11-13-12-12-24-490_com.UCMobile.intl_1.png
Have anyone received buyback offer for NLC India? I mean the email for eligibility?
i think only two website provide buyback latest information.
1. MARKETBHAI.COM
2. INVESTORZONE.IN
THANX BOTH OF U
BHEL Approves Buyback up to 189.3 Million Shares and Rs. 86. 20% Premium to CMP.
Acceptance Ratio Calculation:
No. Of Shares Reserved for Reatil= 2.83 CR
As per Sept 18 shareholding pattern, the number of investors having shares up to 2 Lacs of paid-up Capital is close to 15 CR.
As per the above figure, the Acceptance Ratio would be 18%
COCHIN SHIPYARD BUYBACK
No. Of Shares= 43,95,610
Price= Rs. 455
Total AMount =200 Cr
A Retail investor can buy 440 Shares( 2lakh/455) to participate in the buyback.
As per Mar 18, the number of investors having shares between 1-500 are close to ~73 Lakh.
The No. of Shares reserved for Retail Investor in Cochin Buyback is close ~6.60 Lakh.
As per above figure the Acceptance Ratio would be 9%
1. Shares reserved for Retail Category are close to 2.128 Cr.
2. As per March’18 Shareholding Pattern, the total number of shares up to 3000 is ~2.17 Cr
3. As per June’18 Shareholding Pattern, the total number of shares up to 20k is 2.77 Cr.
4. Assuming total shareholders till Record Date is ~3 Cr.
5. Then Acceptance ratio would be close to 70%.
If Share price move closer to buyback price than 100% Acceptance also possible.
Is this for NLC
Yes.
Svmbol NATIONALUM
Subject: Outcome of the meeting of Board of Directors of the Company held on Friday,
October 12, 2018
The proposal to buyback not exceeding 67,3 I 1,386[Six Crores Seventy Three Lakhs Eleven
Thousand Three Hundred and Eighty Six on/y]equity shares of Rs. 5/- each of the
Company(representing 3.48% of the total number of equity shares in the paid-up share capital
of the Company) at a price of Rs. 75/- (Rupees Seventy Five only)
*Nalco buyback*
6,73,11,386 shares to be bought at 75/- per share
NLC India fixes 24/10/18 as RD for Buyback .
Don’t Jump to buy immediately!!
It’s already up and market is very good today!!
May be good at Rs 72-76/- and possible in 2-3 days..
I would buy in staggered from 78 towards downside.
The Price of share is already up 10%.
This is the new technique Govt is using to meet their target of disinvestment. Actually, in every budget, the govt has a fixed target of disinvestment. Now we have already seen that meeting of disinvestment target through IPO in this market is looking very bleak. The recent listing of PSU has made big holes in the pocket of investors. So investors will think twice-thrice before applying in upcoming PSU IPOs.
So what is the way left for the govt?
The answer is the buyback.
The question is How?
The Govt is now targeting cash-rich PSU companies, meeting their board members and convincing their board to bring buyback. The govt will participate in the buyback and money received via buyback will be used to meet the target of disinvestment.
Now you all must have got the answers why so many PSU companies are suddenly coming up with so may buybacks.
Action of current govt is not investors friendly.. See some of decisions:
1) Introduction of Long Term gain tax
2) Soveriegn Gold bond sold at such a high rate that the sale rate never achieved again even though actual gold price has crossed
3) Most govt sector IPOs has been highly priced
4) In buyback also, prices are being kept like no one can think of..
So, investors, beware of this govt decisions and do not rush to govt companies buyback immediately.