NMDC Buyback 2019
Incorporated in 1958 as a Government of India fully owned public enterprise. NMDC is under the administrative control of the Ministry of Steel, Government of India.
Since inception involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc.
NMDC is India’s single largest iron ore producer, presently producing about 30 million tonnes of iron ore from 3 fully mechanized mines viz., Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State).
NMDC has made a valuable and substantial contribution to the National efforts in the mineral sector during the last five decades and has been accorded the status of schedule-A Public Sector Company. In recognition of the Company’s growing status and consistently excellent performance, the Company has been categorized by the Department of Public Enterprises as “NAVRATNA” Public Sector Enterprise in 2008.
Strong back up of an ISO 9001 certified R&D Centre, which has been declared as the “Centre of Excellence” in the field of mineral processing by the Expert Group of UNIDO.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jan 18 2019 |
| Buyback Opening Date: | Feb 13 2019 |
| Buyback Closing Date: | Feb 27 2019 |
| Buyback Offer Amount: | ₹ 1000 Cr |
| Date of Board Meeting approving the proposal: | Jan 08 2019 |
| Date of Public Announcement: | Jan 08 2019 |
| Buyback Offer Size: | 3.23% |
| Buyback Number of Shares: | 102040815 |
| FV: | 1 |
| Buyback Price: | ₹ 98 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Year | Revenue(Cr) | PAT(Cr) | EBITDA Margins | Profit Margins | EPS |
| FY16 | 8226 | 2703 | 55.0% | 32.86% | 6 |
| FY17 | 9738 | 2583 | 46.0% | 26.52% | 7 |
| FY18 | 12138 | 3802 | 52.0% | 31.32% | 12 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,93,775 | 1,93,775 | 1,93,775 | 1,93,775 |
| No. of Shares buyback | 673 | 1020 | 530 | 2040 |
| BuyBack Profit | 2054 | 3112 | 4668 | 6224 |
| Profit | 1% | 2% | 2% | 3% |
Recommendation:
37 Comments
Leave a Reply
You must be logged in to post a comment.
NMDC 2019 Buyback Final Analysis:-
1. Buyback Announcement date: 08.01.2019 — Share Price was Rs 94.95
2. 2040 shares bought at Rs 94.95 means an investment of 1,93,775
3. Retail Acceptance Ratio was 100%. Profit on Accepted Shares= 6222
Call anyone tell when is the board meeting for NMDC
Final AR is 100%.
No. Of Shares Reserved for Buyback is 1,53,06,123
No. of Shares Tendered is 1,39,81,064
Ok
Final Bid status 136.33% means overall AR is 73.35%,
AR for retail investors may be 100%?
It should be close to 100%
Nmdc buyback last date is 27th feb 19. price 98. now the currunt price is 97.2. how? what will be the price at 27th feb 19?
Technically It should cross 100 next week.
what will be the acceptance ration wizard sir, please provide link for live subscription
Appreciate if someone can update number of retail shareholders and number of shares holding by them as on closing of record date..
Tender date??
open date – Feb 13, 2019 and close date – Feb 27, 2019.
13-02-2019 to 27-02-2019
A R is 19.33% ie. 58 out of 300
kya sirf buy back ke liye buy kar sakte he kitna % ratio lag raha he..
Should we participate
Please suggest minimum Acceptance Ratio… Should I buy or wait for more downside.
40-50% will be accepted.
Minimum Acceptance Ratio for retail investors as per their last shareholding pattern would be 14% .
How to Calculate Minimum Acceptance ratio for retail share holders:
They declared 1000 Crores as buyback amount.. 15% of 1000 Crores i.e., 150 Crores will be reserved for retail investors (those holding shares value less than 2 Lakhs)..
So, at the buyback price of Rs 98 … there are 1,53,06122 (which is 150 cores divided by 98Rs) shares are reserved for retail investors..
As per their last shareholding there are 10,32,46,320 shares are held by retail investors..
So minimum acceptance ration will be 14% which is (1,53,06122 / 10,32,46,320) ..
Nicely presented
Thank you…
Start buying in SIP mode from 90 onwards.
Sir, Do you know NMDC buyback Open -Close date ? or Atleast the close Date will come before or after the FEB expiry ? i need to sell covered call on NMDC. so i need this data.
Please tell approximately also.
It would definitely fall to 86…
Today or tomorrow, definitely before record date…
One can consider buying NMDC below 90. That will give 8.8% of the return if AR is 100%. Chances of AR 100% is high because eventually, the share price will cross 98 till buyback process gets completed.
Today price will decrease upto 90?
Everyone was expecting a buyback price of 105-110. At buyback price of 98, a limited upside is there in the buyback. However, the bright side is the AR could be 100% as very few people will apply. So 3% gain is not that bad either if it happens the way we are assuming today.
The Company has fixed Friday, January 18, 2019 as Record Date for determining the entitlement and the names of the Eligible Shareholders.
Sources on
NMDC buy back worth Rs.10bln
Outcome of the meeting of Board of Directors of the Company held on 8th January 2019
In furtherance to our intimation dated 1st January 2019 and in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, please note that the Board of Directors of the Company in their meeting held on 8th January 2019 has inter-alia:
Approved the proposal to buyback of not exceeding 10,20,40,815 equity shares (representing 3.23% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 98 (Rupees Ninety-Eight only) per equity share (the ‘Buy Back Offer Price’) payable in cash for an aggregate consideration not exceeding Rs. 1,000 Crore (Rupees One Thousand Crore only) (the ‘Buyback Offer Size’) representing 4.11% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone financial statements of the Company for the financial year ended March 31, 2018 (the last audited financial statements available as on the date of Board meeting recommending the proposal of the Buyback) and is within the statutory limits of 10% (Ten Percent) of the aggregate of the fully paid-up equity share capital and free reserves under the board of directors approval route as per the provisions of the Companies Act, 2013 from all the equity shareholders of the Company, as on the record date, on a proportionate basis through a Tender Offer route in accordance the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (the ‘Buyback Regulations’) (hereinafter referred to as the “Buyback”), subject to all other applicable statutory approvals.
The pre-buyback shareholding pattern of the Company as on January 4, 2019 is enclosed as Annexure A to this letter.
The Board Meeting commenced at 3.00 p.m. and concluded at 6.30 p.m.
Buyback Size 1000 Cr that too at very low price of Rs 98/-😞
Last to last Year the NMDC Buyback was announced on 07.06.2016. The Buyback was approved by shareholders on 04.08.2016.
1. Price of Share on 07.06.2016= 92
2. Buyback Price = 94
3. Record Date= 19.08.2016
4. Share Price on Record Date= 107
5. Letter of Offer announced on 19.09.2016( Entitlement Ratio= 100%)
5. Buyback Open = 19.09.2016
6. Buyback Close = 30.09.2016
So by seeing the Entitlement ratio of 100% on 19.09.2016, all buyback participants must have sold their shares in the market as on 19.09.2016, the share price was 101 because had they wait for buyback the company would have bought at 94 which would be a loss to them.
Last time buyback size was 80.08 cr fully paid-up equity shares of face value `1 each, for an aggregate consideration not exceeding 7527 cr (the “Buyback Offer Size”).
The Entitlement ratio was 100% because of the huge size of the buyback. The company in 2016 had 14000 Cr cash in books so they have done this big buyback. However, as on FY18, the company had only 5738 Cr of cash, so this time the size won’t be much bigger.
What is expectations?
Market wizard ji, what is your opinion for buying NMDC share only for buyback purpose at this stage ?
Though taking chance for buyback before the announcement is very difficult as we do not know what is the buyback size, price, and no. of shares to be buyback. However, at CMP the risk savvy investors can look for the NMDC as stock price is near 52 weeks low. The Motilal Oswal on Dec, 10 has recommended NMDC for a target of Rs.110. The report is mentioned below.
https://www.moneycontrol.com/news/business/stocks/buy-nmdc-target-of-rs-110-motilal-oswal-3271831.html
Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. and other applicable provisions of law, notice is hereby given that the Meeting of Board of Directors of the Company will be held on Tuesday, 8th January 2019, inter-alia, to consider the proposal for Buy-Back of the fully paid-up equity shares of the Company.
In pursuance of the Internal Code of Conduct for Prevention of Insider Trading in dealing with Securities of NMDC Limited, the trading window for trading in the equity shares of the Company shall remain closed from 2nd January 20 19 to 10’h January 2019 (both days
inclusive), in connection with the above-scheduled meeting.