Sasken Buyback 2019

Sasken is a specialist in Product Engineering and Digital Transformation providing concept-to-market, chip-to-cognition R&D services to global leaders in Semiconductor, Automotive, Industrials, Smart Devices & Wearables, Enterprise-Grade Devices, Satcom and Transportation industries.

Currently, the company is focusing on AI(Artificial Intelligence), Block-Chain, 5GV2X and IOT( Interner Over Things).

Buy Back Offer Deal:

Buyback Type: Tender offer
Buyback Record Date: Jul 05 2019
Buyback Offer Amount: ₹ 169 Cr
Date of Board Meeting approving the proposal: Apr 23 2019
Date of Public Announcement: Apr 23 2019
Buyback Offer Size: 11.68%
Buyback Number of Shares: 20,59,243
FV: 10
Buyback Price: ₹ 825 Per Equity Share

Details of Buyback:

The Board has unanimously approved the proposal to Buy-back up to 20,59,243  fully paid up Equity Shares of the Company having face value of Rs.10 each representing 11.680% of the total number of equity shares of the Company at a price not exceeding Rs.825 per Equity Share ('Maximum Buy-back Price') payable in cash for a total consideration not exceeding Rs.16988.76 lakhs through the “Tender Offer” route.

Salient financial parameters:

 
(in Cr.) 2019 2018 2017
Revenue 550 539 500
Expenditure 439 439 423
Net Profit 90 82 84
Equity 17.11 17.11 17.42
EPS 53 48 48
EBITDA Margins 21.4 19.6 16.6
PAT Margins 16% 15% 17%
(i) For FY18-19, Sasken net profit was higher by 9.7 percent to Rs 90.42 crore as compared to 83 Cr last year while the Revenue is up by a mere 2%. (ii) The Sasken is trading at P/E of 13.84 based on FY18-19 earnings. (iii) The Improvement in the EBITDA Margins in the last 3 years is quite encouraging.

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Sasken Buyback 2019 in demat or physical form as on record date. [ 05.07.2019 ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ Not Announced Yet ] by selling your shares through your broker on NSE or BSE. 3. Then on [ Not Announced Yet ], 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 235 Shares at CMP of Rs. 735 [2,00,000/850 =235)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,72,725 1,72,725 1,72,725 1,72,725
No. of Shares buyback 77 117 176 235
BuyBack Profit 8855 13445 20240 27025
Profit 5.126% 7.78% 11.71% 15.64%

Recommendation:

Review and Recommendation of Sasken Buyback 2019 by IZ team is: 5/10 Fair: 1-5 Good: 5-7 Excellent: 7-10 [ The Sasken has shown good results in FY19. The Share is currently available at P/E of 13 and it is discount to its IT peers. Entitlement should above 20% ]

Company Contact Details:

Sasken Technologies Ltd 139/25, Ring Road, Domlur, Bengaluru 560071, India CIN# L72100KA1989PLC014226

    The company is not reluctant to push Buyback either they will wait another quarter for buyback or most probably SEBI will give permit them to Cancel Buyback as Tax laws have changed.

    Is sasken buyback happening or not ? I have 2 applications for this and this stock is bleeding…any news on buyback ? seems it is cancelled or something

    If I buy today on 4th July, am I eligible to participate in buyback?

    Record Date – Friday, July 5, 2019

    Purpose – To determine the entitlement and names of Equity Shareholders, who are eligible to participate in the proposed offer for Buy-back of up to 20,59,243 (Twenty Lakhs Fifty Nine Thousand Two Hundred Forty Three only) Equity Shares of the Company at the price of Rs.825 per Equity Share

    On Wipro members had commented that record date will be announced on 3rd JUne which company did.So members any idea when is the company going to announce record date?

    SASKEN has reached 704. is it a good price to buy for buyback or it can fall further?any suggestions or views from members?

    Why the price is going down. I bought 30 for 750. should I get out now or keep invested. The probability of price going down is high?

      You should not have bought around 750. Had you read my old messages in this forum I warned all not to buy around 750, but to wait till the price comes around 715-720 to initiate a buy that too in SIP mode as the election is around the corner.

      Nevertheless, this is the share market such things are inevitable. Please Don’t sell in the loss. Keep holding the share, the company has a comfortable valuation at CMP as compared to peers. So need to worry.

      Just enjoy the market without worry!!! The market is more psychological than emotional or excitement.

    Market wizard bhai bse ltd ka buyback update karo. 5 tarikh ko announce hone ja raha he

      Price has appreciated after the announcement. Initial chance of picking it up has been lost. Just wait for the announcement of a record date to enter again of price comes around 720-725.

    Ason 31.03.2019,

    Individual share capital up to Rs. 2 Lacs=29,57,758
    Shares reserved for Retail Shareholders= 2,99,801
    Entitlement based on this would be = 10.13%

    Sasken is available discount to its peers like Infosys, Wipro, and TCS which are trading at P/E of 19,20 and 25 respectively.

    The Board of Directors have recommended a final dividend of Rs.7.50 per equity share of Rs.10 each

    for the year ended March 31, 2019. This is subject to approval of shareholders. In all, the Company
    has declared and recommended a dividend of Rs.12.50 per equity share of Rs.10 each for the year
    2018-19 – 125%