Sharda Motor Industries Ltd. Buyback 2024

  1. Market Leadership: Sharda Motor is a leader in manufacturing various automotive components like exhaust systems, catalytic converters, independent suspensions, seat frames, and covers for both two- and four-wheelers.
  2. Advanced Manufacturing: Equipped with state-of-the-art manufacturing facilities, Sharda Motor focuses on innovation, technology upgrades, and R&D for continuous product improvement.
  3. Industry Partnerships: It partners with major automotive companies, including Hyundai, Tata Motors, Mahindra & Mahindra, Cummins, and many more.
  4. Global Reach: The company boasts 13 manufacturing units and an R&D center, covering a significant portion of the global automotive market with a diverse product range.
  5. Comprehensive Solutions: Sharda Motor’s extensive range includes emission systems, suspension systems, and supply chain management, all contributing significantly to the automotive industry.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 184.99 Cr
Date of Board Meeting approving the proposal: Apr 18 2024
Date of Public Announcement: Apr 18 2024
Buyback Offer Size: 3.46%
Buyback Number of Shares: 10,27,777
FV: 2
Buyback Price: ₹ 1800 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 10,27,777 (Ten Lakhs Twenty Seven Thousand Seven Hundred and Seventy Seven Only) equity shares of the Company (representing 3.46% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 1800/- (Indian Rupees Eighteen Hundred only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 1,84,99,98,600 (One Hundred Eighty Four Crore Ninety Nine Lakhs Ninety Eight Thousand and Six Hundred Only).

Salient financial parameters:

Particulars (In Cr)
 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 1,140 863 1,737 2,255 2,700
Expenses + 995 767 1,607 2,027 2,418
Operating Profit 145 96 129 228 282
OPM % 13% 11% 7% 10% 10%
Other Income + 22 24 21 29 42
Interest 0 1 1 1 2
Depreciation 41 40 44 41 46
Profit before tax 126 78 105 215 275
Tax % 30% 26% 25% 25% 25%
Net Profit + 88 58 79 161 205
EPS in Rs 29.58 19.44 26.46 54.32 69.09
Dividend Payout %
 0% 0% 2% 15% 25%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Sharda Motor Industries Ltd. in Demat or physical form as on the record date [To be updated].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE.
3. Then on [To be updated], 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 111 Shares at CPM of Rs. 1504 (2,00,000/1800)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 166944 166944 166944 166944
No. of Shares Buyback 36 55 83 111
Buyback Profit 10656 16280 24568 32856
Profit% 6.38% 9.75% 14.72% 19.68%

3 Comments

      Expecting e voting result for buyback proposal declare after 24 may … So record date probability in June 1st week.

      Reply

    Over all, this one looks better among the current lot. I am Participating.

    Reply

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