S H Kelkar & Company Limited Buyback 2021

In 1922, Keva began as S.H. Kelkar and Co. and Saraswati Chemicals – a manufacturer of industrial perfumes in British India. Today, its fragrances and flavours are found in a number of bestselling brands in their respective product categories all over the world. Some of the fragrances developed by the company decades ago are still market leaders, reinforcing our belief that a commitment to quality and imaginative solutions can bring enduring success.

The company is now the leading fragrance manufacturer in India. Over the years, they’ve perfected the art of delivering the ideal sensorial solution for every market. Their knowledge and rich heritage earned it a number of distinguished awards and milestones, motivating and inspiring them to create more sensorial breakthroughs.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 12 2021
Buyback Opening Date: Dec 15 2021
Buyback Closing Date: Dec 28 2021
Buyback Offer Amount: ₹ 2.05%
Date of Board Meeting approving the proposal: Oct 29 2021
Date of Public Announcement: Oct 29 2021
Buyback Offer Size: 61%
Buyback Number of Shares: 29,00,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 210 Per Equity Share

Details of Buyback:

1. The Board approved the proposal of S H Kelkar & Company Limited buyback of fully paid-up equity shares of face value  10 each of the Company for an amount not exceeding  60.9 crores. 2. S H Kelkar & Company Limited buyback is approximately 2.65% of the total paid-up equity share capital based on the audited standalone and consolidated financial statements of the Company respectively as of March 31, 2021 3. S H Kelkar & Company Limited buyback 2021 price is  Rs.210 per Equity Share through the "tender offer" route, on a proportionate basis.

Salient financial parameters:

Particulars (in Crores) Mar 18 Mar 19 Mar 20 Mar 21
Sales 1,021 1,048 1,114 1,322
Expense 862 908 955 1,083
Operating Profit 159 141 160.00 239.00
OPM % 16% 13% 14% 18%
Other Income 13 21 -28 36
Interest 5.00 16.00 26.00 20.00
Depreciation 24 31 52 62
Profit before tax 143 115 54 194
Tax % 35% 24% 34% 26%
Net Profit 94 88 36 145
EPS 6 6.12 2.53 10.24
Source:Screener

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of S H Kelkar & Company Limited Buyback 2021 in demat or physical form as on record date [12.11.2021]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [15.12.2021 to 28.12.2021] by selling your shares through your broker on NSE or BSE. 3. Then on [06.01.2022], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 952 Share at CMP of Rs.158 [2,00,000/210=952 )
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,50,416 1,50,416 1,50,416 1,50,416
No. of Shares buyback 314 476 714 952
BuyBack Profit 16,328 24,752 37,128 49,504
Profit% 10.80% 16.40% 24.60% 32.90%

Recommendation:

Review and Recommendation of S H Kelkar Ltd Buyback 2021 by IZ team is: 4/10 A very small buyback of just 60 Crores. Arbitrage of 31% available which is very good. Expected Entitlement Ratio = 4-5%

12 Comments

    30% AR as 229 shares are accepted out of the 769 shares held on the Record Date n tendered for the buyback. I am quite happy for that. My assessment of around 13% AR in this buyback has also proved that I know nothing about the assessment of the AR. Now, I understand that I am not having any knowledge to share my views on the Buybacks. Thank you.

    Reply

      How it is I dont know but in my case only 30 shares are buyback out of 200 means 15% AR

      Reply

        Sir,
        Please refer to the mail received regarding intimation of the Number of shares held on the Record Date and the Number of shares entitled for the buyback. Have you found the same number of 200 in that mail against the Number of shares held on the Record Date? I doubt whether you are holding 200 shares on the Record Date.

        Reply

        Rechecked and found that there was only 100 shares on record date. 100 shares purchased latter onsorry for creating doubt.thanks for reply.

        Reply

          Sometimes it happens. No need to feel bad n sorry. Thank you.

          Reply

    One can purchase shares at the CMP for tendering for buyback. Size of the buyback is not a negligible one. You will definitely get a reasonably minimum profit. I hope that the ER will be around 6% and AR around 13 to 17%. Chances of much downfall in the price of unaccepted shares after the buyback are very less. Thank you.

    Reply

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