Shervani Industrial Syndicate Ltd. Buyback 2024

Shervani Industrial Syndicate Limited, established in 1948 by Late M.R. Shervani, has transitioned from manufacturing Geep brand Torches & Drycell Batteries to a prominent real estate player.

Led by Chairman Mr. Saleem Iqbal Shervani, a former Union Minister and Managing Director Mr. Mustafa Rashid Shervani, the company has successfully completed residential projects like “Sterling Apartments” and is developing “Shervani Legacy,” a comprehensive residential colony in Prayagraj.

Additionally, the company has plans for a multispecialty hospital within this estate. Originating as Great Eastern Electroplators Limited, it underwent several transformations, culminating in the sale of its Geep brand in 1998, which led to its current name and business focus.

The Shervani group also includes Farco Foods Private Limited, a biscuit manufacturing entity, and Star Hotels Private Limited, which operates several hotels and a restaurant under the Shervani brand.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 07 2024
Buyback Opening Date: Mar 13 2024
Buyback Closing Date: Mar 20 2024
Buyback Offer Amount: ₹ 6.83 Cr
Date of Board Meeting approving the proposal: Feb 23 2024
Date of Public Announcement: Feb 23 2024
Buyback Offer Size: 4.96%
Buyback Number of Shares: 1,34,000
Price Type: Tender Offer
Buyback Price: ₹ 510 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 1,34,000(One Lakh Thirty-Four Thousand) equity shares of the Company (representing 4.96% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 510/- (Rupees Five Hundred and Ten only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 6,83,40,000/- (Rupees Six Crores Eighty-Three Lakhs Forty Thousand only).

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 79 92 32 9 27
Expenses + 35 67 27 12 23
Operating Profit 43 25 4 -3 4
OPM % 55% 27% 14% -32% 14%
Other Income + 0 1 1 1 22
Interest 0 0 0 0 0
Depreciation 1 1 1 1 1
Profit before tax 43 25 5 -3 24
Tax % 20% 21% -46% 6% 3%
Net Profit + 34 20 7 -3 24
EPS in Rs 109.31 73.79 24.66 -10.26 87.49
Dividend Payout %
0% 3% 10% -19% 3%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Shervani Industrial Sydicate Limited in Demat or physical form as on the record date [07-03-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [13-03-2024] by selling your shares through your broker on NSE or BSE. 3. Then on [20-03-2024], 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:

As Buyback price is less than CMP, so no arbitrage is available.


    The only positive is that the circuit limit is 20% on this stock , so price discovery will happen quickly.

    What’s happening here can anyone explain.
    Price is already too much about buyback price and size is smaller than last buyback.

    Is promoter only want to sell shares in buyback?

      Nothing surprising about the buyback announcement. What was surprising was why the share price shot up after the board meeting was announced.

    Shervani Industrial Syndicate Buy Back 2019

    Size: 24.49 % of Equity
    Total Shares to be bought Back: 4,15,000
    Offer Value: Rs 20.75 crores
    Price on record date: 606 (Yes, price was higher than buy back price)
    Max Shares for Small Share Holders: 330 shares
    Buy Back Price: 500
    Actural ER: 63.63% (7 shares out of 11)
    AR : Not a single share (small share holder category) participated

    Shervani Industrial Syndicate Buy Back Feb 2024:

    Expected Minimum ER (based on data of 31-03-2023) : 45%
    Expected Offer in Rupee Terms: more than 40 crores
    Expected Buy back price: ?????

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