Selan Exploration Technology Limited Buyback 2018

Selan Exploration Technology Limited (SELAN) is a private sector listed company, incorporated in 1985, engaged in oil exploration and production since 1992.

The Promoters and Management have extensive experience and domain knowledge in the field of Petroleum Exploration, Development and Production as well as in the field of Geophysical Data Acquisition, Processing and Interpretation.

Following the move by the Government of India in 1992 in opening up the oil sector for private initiative in exploration and production of Hydrocarbons, SELAN was amongst the first private sector companies to have obtained rights to develop three discovered oilfields situated in the state of Gujarat namely Bakrol, Indrora and Lohar, all with proven oil and gas reserves. SELAN was subsequently awarded two more fields in Gujarat namely Ognaj Oilfield and Karjisan Gas field.

All the oil and gas blocks have a well laid out infrastructure. Hence these blocks are easily accessible and are in close proximity to the Government’s crude gathering station as well as are in close proximity to a large industrial town.

The various seismic and reserves assessment studies have established substantial amounts of oil and gas reserves in these blocks.

SELAN thus has significant oil and gas assets in its control which require developmental work and for the purposes, it would require substantial amounts of Capital investment to augment its development and growth objectives.

SELAN has a Development Plan for drilling of additional wells in these blocks in the next 3 to 5 years. The Plan is intended to be executed in a phased manner and would involve large capital expenditures, to be funded through a combination of external borrowings and internal accruals. The proposed external borrowings shall be drawn in various stages of completion of each phase. This approach offers a view to judiciously monitor the debt

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Jan 07 2019
Buyback Closing Date: Jul 06 2019
Buyback Offer Amount: ₹ 25 Cr
Date of Board Meeting approving the proposal: Dec 27 2018
Date of Public Announcement: Dec 27 2018
Buyback Offer Size: 8.66%
Buyback Number of Shares: 8,33,333
FV: 10
Buyback Price: ₹ 300 Per Equity Share

Details of Buyback:

The Board of Directors of the Company at its meeting held on 27.12.2018  has approved a proposal to buy back up to 8,33,333 Equity Shares of the Company, being 8.66 % of the total paid up equity share capital and Free Reserves of the Company, for an aggregate amount not exceeding Rs.25 Crores at Rs. 300 under the Open Market offer route using the stock exchange mechanism.

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: “Selan Exploration Technology ” announces buyback plan of its shares up to value of Rs 300, it means that the company will be purchasing shares of "Selan Exploration Technology " from the open market at a price not exceeding Rs.300 per share. Scenario 1- If the share price is below Rs. 300 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. 300, in that case, the company will put buy order at Rs. 300 only and if someone is ready to sell at Rs.300 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

Selan Exploration Technology 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:

Selan Exploration Technology Limited Buyback 2018 Rating by InvestorZone team => 2/10 1-5: Fair 5-7: Good 7-10: Excellent

    if i buy 100 shares of selan exploration how much i can able to apply for buyback ?? can you please clarify ??

    if i buy 10 shares of selan exploration how much i can able to apply for buyback ?? can you please clarify ??

    Fall in crude price is negative for oil exploration companies .The quarterly results will be poor for these companies.