S. P. Apparels Limited Buyback 2022
i. One of India’s top producers and exporters of knitted clothing for infants and children is S.P. Apparels Limited (SPAL). The business has integrated manufacturing facilities that offer full-cycle apparel production, from grey fabric to finished goods. Additionally, the business produces and sells menswear clothing in India under the Crocodile label.
ii. The two main business divisions of SPAL are
(i) the garments division, which produces knitted clothing for babies and children and exports it, and
(ii) the retail division, which produces, distributes, and markets goods in India under the Crocodile brand.
iii. Crocodile Products Private Limited (CPPL) and S. P. Apparels (UK) Private Limited are the two subsidiaries of SPAL (SPUK). An agreement for a technology licence has been made between CPPL, a joint venture between SPAL and Crocodile International Pte. Ltd. (CIPL), and CIPL for the exclusive manufacture, distribution, and marketing of menswear under the trademark Crocodile in India.
iv. CPPL is also engaged in the business of establishing and managing units to manufacture trade deal import and export garments. In order to investigate potential marketing opportunities and conduct business with new clients in the United Kingdom, Ireland, and other European nations, SPUK was established in 2014. As of June 2018, SPAL had 24 manufacturing facilities in and around Avinashi, Tamil Nadu, and 125 km from its corporate office. SPAL uses a hub-and-spoke business model.
v. The company’s facilities have a wide range of infrastructure and equipment for the production of yarn, dyed fabric, sewing, cutting, printing, embroidery, and finishing of garments, allowing the company to quickly fulfil orders from multiple large customers.
Buy Back Offer Deal:
|Buyback Type:||Tender Route|
|Buyback Record Date:||Oct 07 2022|
|Buyback Offer Amount:||₹ 35.1 Cr|
|Date of Board Meeting approving the proposal:||Sep 21 2022|
|Date of Public Announcement:||Sep 21 2022|
|Buyback Offer Size:||5.68%|
|Buyback Number of Shares:||6,00,000|
|Price Type:||Tender Route|
|Buyback Price:||₹ 585 Per Equity Share|
Details of Buyback:
Salient financial parameters:
|Particulars (in Cr)||Mar 2019||Mar 2020||Mar 2021||Mar 2022|
|Profit before tax||109||44||59||115|
|EPS in Rs||28.56||18.26||16.8||32.96|
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
|Amount Invested in Buyback||1,52,427||1,52,427||1,52,427||1,52,427|
|No. of Shares buyback||112||170||255||341|