R Systems Buyback 2021
They were incorporated in 1993 as a software consulting firm in the United States. With a focus on delivering quality to all customers, they started the India operations in 1997, by setting up our offshore software development center in Noida, India.
They received strategic investments from Intel Capital and GE Capital in 2001 and 2002. With a backdrop of successful response from ISVs, they underwent a massive transformation in 2006. From offshore software Development Company to global outsourced product Development Company, they revisited their business focus. The remarkable acquisitions at that time included Pune-based Indus Software and Singapore-based ECnet.
During this phase, they strengthened their serviceability by aligning mature quality assessments like CMMI Level 5, ISO: 9001: 2008, PCMM Level 5, and Six Sigma certifications. They also added US-based Web Converse & Europe-based Sento in their list of acquisitions and became a listed member on National Stock Exchange (NSE) and Bombay stock Exchange (BSE)
They began offering services in four major verticals including; Banking & Finance, Telecom & Digital Media, Healthcare, and Manufacturing & Logistics. To further strengthen the Telecom Vertical, we acquired UK-based Computers.
Buy Back Offer Deal:
|Buyback Type:||Tender Offer|
|Buyback Record Date:||Aug 27 2021|
|Buyback Offer Amount:||₹ 30 Cr|
|Date of Board Meeting approving the proposal:||Aug 06 2021|
|Date of Public Announcement:||Aug 06 2021|
|Buyback Offer Size:||10.83%|
|Buyback Number of Shares:||1,333,000|
|Price Type:||Tender Offer|
|Buyback Price:||₹ 225 Per Equity Share|
Details of Buyback:
Salient financial parameters:
|Particulars (in Crores)||Dec 2016||Dec 2017||Dec 2018||Dec 2019||Dec 2020|
|Profit before tax||76||35||63||72||97|
|EPS in Rs||4.33||1.82||4.12||4.83||6.87|
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
|Amount Invested in Buyback||1,72,444||1,72,444||1,72,444||1,72,444|
|No. of Shares buyback||293||444||666||888|
Review and Recommendation of R Systems Limited Buyback 2021 by IZ team is: 4/10
[Currently the expected ER is around 5-6% . The good part is the record date is near i.e. 27.08.2021. The stock may move to 225 level as we approach near the record date. If that happens, the AR will be improved significantly. The results of the company for FY20-21 are very good.]