Oriental Carbon & Chemicals Limited Buyback Offer 2018

Oriental Carbon & Chemicals Limited is as much a people driven company as it is a technology driven one. It is on these cornerstones that OCCL has been able to build its standing and reputation in the Industry. Today OCCL, belonging to JP Goenka Group of companies, is one of the market leaders in the production of Insoluble Sulphur for the Tyre and Rubber industry around the world both in terms of quality as well as quantity. The company is oriented towards growth in a socially and environmentally sustainable manner. It has state of the art manufacturing facilities in India at Dharuhera (Harayana) and at Mundra (Gujarat). Apart from Insoluble Sulfur OCCL also manufacture Sulphuric Acid and Oleums in our chemical complex at Dharuhera. Starting in 1994 with modest capacities of 3000 mt per annum capacity, The production capacity of Insoluble Sulphur now stands at 28,500 Mt per annum with new capacities slated to be added in near future.

“Diamond Sulf” the brand under which our Insoluble sulphur is sold is synonymous with quality Insoluble sulphur in which it is the undisputed leader in India. Our strong belief in quality at each production stage has helped OCCL to be widely accepted around the world as a preferred vendor by leading tyre companies. This has also made it possible to control and develop products to serve various requirements. Diamond Sulf is offered in various grades to satisfy diverse compounding requirements of Tire companies. The company today offers the widest range of Insoluble Sulphur in the world. This allows our customers to choose the grade which best suits their requirement . Custom made grades are also offered to meet some specific performance requirements.

They have all necessary systems in place to ensure timely deliveries and technical services. They have an office and a warehouse in Germany to facilitate distribution of their products in Europe. They can make their products reach their customers easy and fast. THEIR products are REACH compliant and the registration process has already been completed.

With well equipped lab in place, Their research and development team is constantly experimenting, evolving and innovating to make their products better performing and more stable. They take pride in consistently working on enhancing the performance of Their products and setting a new paradigm in Their product’s performance. Widely appreciated by leading tyre manufactures for experience and innovation in it’s product range OCCL is now looking at a brighter and sustainable future.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Nov 14 2018
Buyback Closing Date: Feb 27 2019
Buyback Offer Amount: ₹ 1150
Date of Board Meeting approving the proposal: Nov 01 2018
Date of Public Announcement: Nov 01 2018
Buyback Offer Size: 9.60%
Buyback Number of Shares: 3,04,347
FV: 10
Buyback Price: ₹ 1150 Per Equity Share

Details of Buyback:

The Board of Directors of the Company, at its meeting held on 01.11.2018, have approved the buyback of fully paid up Equity Shares of a face value of Rs.10 each ("Equity Shares" and such buyback, the "Buyback"), for an aggregate amount not exceeding Rs.35 Crores (Rupees Thirty Five Crores only) excluding expenses like filing fees payable to the Securities and Exchange Board of India, stock exchange fees, advisors fees, public announcement publication expenses, transaction cost viz., brokerage, applicable taxes such as securities transaction tax, stamp duty, etc., and any other incidental and related expenses ("Maximum Buyback Size"), at a price not exceeding Rs.1150/- (Rupees Thousand One Hundred Fifty Only) per Equity Share payable in cash ("Maximum Buyback Price") from the Open market through stock exchange mechanism in such manner as may be prescribed in the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018

Shareholding Pattern Pre and Post buyback:

 Particulars        Pre-Buyback      Post- Buyback
 Equity Shares % Equity Shares %
(A) Promoters and Promoter Group 5,150,675 50.03 5,150,675 51.55
(B) Public 5,145,387 49.97 4,841,040 48.45
(Cl) Shares underlyin DRs --, -- -- --
(C2) Shares held by Employee Trust -- --
(C) Non Promoter-Non Public -- --
Grand Total 10,296,062 100 9,991,715 100

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Oriental Carbon & Chemicals Limited” announces buyback plan of its shares up to value of Rs.1150, it means that the company will be purchasing shares of "Oriental Carbon & Chemicals Limited" from the open market at a price not exceeding Rs.1150 per share. Scenario 1- If the share price is below Rs. 1150, in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 1150, in that case, the company will put buy order at Rs. 1150 only and if someone is ready to sell at Rs.1150 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

Oriental Carbon & Chemicals Limited Buyback is an Open Market BuyBack In this method of share buyback, the company buys its own stocks from the market. This transaction happens through the company’s brokers. This repurchase program happens for an extended period of time as a large block of shares needs to be bought. The company is under no obligation to conduct the repurchase program after the announcement. The company has the option to cancel it. Also, it can make changes in the repurchase program according to company’s situations and needs. If this method is effectively implemented, it can prove to be very cost effective.

Recommendation:

Oriental Carbon & Chemicals Limited Buyback 2018 Rating by InvestorZone team => 2 (Avoid) 1-5: Fair 5-7: Good 7-10: Excellent

Company Contact Details:

Oriental Carbon & Chemicals Limited 14th Floor, Tower-B, World Trade Tower Plot no. C-1, Sector-16, Noida-201301 Uttar Pradesh, India. Phone No. +91 120 2446850

    The Buy-back was commenced on 14.11.2018 in accordance with the provisions of the Buyback Regulations. In this regard, please be informed that the Company has bought back 305970 (Three Lakhs Five Thousand Nine Hundred and Seventy} Equity Shares at an average price of Rs. 1143/- (Rupees One Thousand One Hundred and Forty Three Only) per Equity Share (price calculated has been rounded to the nearest paisa).

    Accordingly, the Company deployed approximately Rs. 3497 Lakhs {Rupees Three Thousand Four hundred Ninety Seven Lakhs Only) (excluding Transaction Costs), which represents approximately 99.92% of Maximum Buy-back Size.

    Consequently, the Buy-back committee of the Company vide resolution dated 27.02.2019 inter-alla resolved to close the Buy-back and thereby the Company announces the closure of the Buy-back with effect from closing hours of 27.02.2019.

    Open offer may or may not benificial to the shareholders.It depends on company management.

    Open type and NOT Tender type…
    Can be looked if price comes down further down by 10%…