Sinclairs Hotels Limited Buyback 2023
Sinclairs is a preferred destination for business and leisure travellers at Siliguri, Darjeeling, Kalimpong, Chalsa in Dooars, Gangtok and Yangang in Sikkim, Port Blair and Ooty. Periodic modernization and refurbishments, based on guest feedback and expert recommendations, have kept Sinclairs properties contemporary. Sinclairs Hotels and Resorts owns and operates nine properties in India.
Darjeeling is famous for its teas and the Himalayan range of mountains, Kalimpong is a quaint hill town famous for its orchids and flowers, Dooars is known for its rich wild life, forests and also teas. Ooty’s claim to fame is its blue mountain range while Port Blair in the Andamans is a perennially attractive destination for its beaches, unarguably among the best in Asia. Siliguri is the main commercial city of North Bengal, and is an important transportation and trading hub. Sinclairs also offers excellent venues for holding conferences, meetings and seminars in these locations.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Sep 28 2023 |
| Buyback Opening Date: | Oct 06 2023 |
| Buyback Closing Date: | Oct 12 2023 |
| Buyback Offer Amount: | ₹ 30.4 Cr |
| Date of Board Meeting approving the proposal: | Aug 10 2023 |
| Date of Public Announcement: | Aug 10 2023 |
| Buyback Offer Size: | 5.6% |
| Buyback Number of Shares: | 15,20,000 |
| Price Type: | Tender Offer |
| FV: | 2 |
| Buyback Price: | ₹ 200 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (in Cr) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales + | 46 | 45 | 17 | 30 | 54 |
| Expenses + | 28 | 28 | 13 | 19 | 32 |
| Operating Profit | 18 | 17 | 4 | 11 | 22 |
| OPM % | 39% | 37% | 26% | 36% | 41% |
| Other Income + | 4 | 2 | 6 | 4 | 22 |
| Interest | 0 | 0 | 1 | 1 | 1 |
| Depreciation | 8 | 7 | 5 | 5 | 5 |
| Profit before tax | 14 | 12 | 4 | 9 | 38 |
| Tax % | 31% | 19% | 17% | 24% | 19% |
| Net Profit + | 10 | 9 | 4 | 7 | 31 |
| EPS in Rs | 3.49 | 3.4 | 1.26 | 2.56 | 11.5 |
| Dividend Payout % | 34% | 23% | 63% | 39% | 13% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,62,000 | 1,62,000 | 1,62,000 | 1,62,000 |
| No. of Shares Buyback | 330 | 500 | 750 | 1000 |
| Buyback Profit | 12,540 | 19,000 | 24,750 | 38,000 |
| Profit% | 7.74% | 11.73% | 15.28% | 23.45% |
133 Comments
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First buyback which I closed out in loss yesterday.
Hello Rohit,
Any idea on the acceptance ratio of this buyback?
AR is 19.83% for retail category
Thank you Rohit ji. I have always tried to avoid loss by holding for few months after the buyback since I hate booking loss before the financial year end . I fortunately have been successful so far except in the case TCS last time and may be one or two,of late.
My trust and patience in this beauty paid of today. Sold the leftovers at a handsome gain.
Awesome…
However, I always like to follow a fixed strategy in share market. If you bought a company on the basis of FA then keep it (I have few shares in my portfolio that is generating more than 40-50% currently) and if bought on the basis of news or buyback etc so get out once it is over and move to other.
Not sure whats your previous experience is but I learned this from my personal experience and advises from market gurus.
Any one having account with the ICICI SECURITIES got contract note regarding the buyback of the shares of Sinclairs Hotels Ltd. If so, when? Such investors may please respond asI haven’t received any so far. That’s why I am requesting. Thank you.
Since received. Sorry for troubling you, if any. Thank you.
19.9% AR. 219 shares accepted from 1100.
Not very Good… lets see the share price in market…
Indeed,a poor 139/700. CMP is also very less. Going to keep the left overs for future.
Hi Gopiji, AR about 19.78%. Approx 20% gain as per my rough calcs. Not bad I would say Money already received in the bank. There is a temp pullback in the market rate, but I assume it will go back to the 160-165 range soon. Going by previous history it will touch 200 in an years time.
Thank you for your positive stand and encouragement, Thankam ji.Let us wait for 162/ atleast.
There you go Gopiji. 175 plus, but IMHO if you wait it will touch 200 plus in the next 12 months. Cheers
Thank you so much 😊. Will be there to buy again on dip. Love you too
Hat’s off to you dear. What a perfect prediction.! I sold my holding today .
Sinclairs near the 200 mark. Think it is a matter of time, it may even surpass the buyback price
I really regret selling. It more than doubled and is still on a song. Wow, what a beauty,Thankam ji.I continue to remember your encouraging comments and hence this post.Wonder why am I missing you in the zone!
219/1100 in SBI SECURITIES. The unaccepted shares of 881 have since been sold @ Rs.151.90. Not a good deal for me. I am not in a position to wait. Hence warranted to do so.
Waiting was worth in case of Siyaram Silk Mills.I sold the left overs today at a handsome gain. Similar was the case with FDC too. SRK Ji could sell today at a good price. It has fallen upto 132/ in the recent times.
Are Remaining shares credited in SBI already? Remaining shares not credited to my zerodha a/c.
Balance shares in my Zerodha ac since morning
Buy back dates over. Any update on AR
Wait for 4 working days .
Thank you
20% ar
If AR is 20% then many would end up in loss . By the way how did u arrive to this number ?
I am facing a problem when I am trying to bid the shares for the buyback through the SBI SECURITIES. It is suggesting to consult the system administrator. Kindly let me know whether any one is facing the same problem. If so, please let me know how they have resolved the issue. Thank you very much.
I am also facing the same problem, please message here if you could resolve the issue
On vigorous pursuance with the SBI SECURITIES , now the problem is resolved. You please try now. If not succeeded, You may please call on 022 68545555 from the Registered Mobile Number, select language and press 3 for placing order on your behalf. Please update.
Today it is accepting buyback order, you can try now.
Why sinclair share is going down… What would be it’s effect no buyback AR.. Is it a panic selling
What could be the AR for sinclairs?
My guess is 30%
Please look kfin technology board meeting on 27.09.2022 on bse and elobarate about buyback
It is related to preference share
It is not related to the equity shares.
A mere 10 percent E R is disappointing, even if it has hardly any relevance, atleast to me.I hope Sumit ji will come up with his valuable predictions which has always been nearly accurate.
Any update on ER as on Record date
Just before 3pm announced.
Check on BSE website.
Retail ER : 10%
Sinclairs good to buy around 159 ?
I think so and bought 500 today @ 158.5
Did you buy it on the basis of FA (Fundamental Analysis)?
Good to hear from you, Rohit Ji. Yes I find the fundamentals are good.PE Ratio of 13.8 against Sector PE of 64.8 and PB of 3.38 against Sector PB of 6.24 and good opm were attractive. Hospitality sector is on the upmove. Above all I recently watched the IPO of loss making Samhi Hotels getting over subscribed and listed on premium. It’s still being traded around ₹150/. It’s FV is ₹1as against ₹2/ of this one. The market is on a free fall because of FPI selling. There is no buy back around. Oil marketting companies can’t be bought until the general election is over. My desire to buy LT is also not going to work because of the relentless upmove. Please suggest some good ones to buy if you have some ideas. I certainly respect your valuable suggestions.
Thanks for your reply, Gopi. However, as per my personal experience, you will be able to buy Sinclair at a much lower level than today. In most cases, the share price gets reduced by a decent percentage once the tender buyback is over.
Thank you Rohit Ji for your kind views. I sold 300 nos today @ 162.9.
The price is now 147.45 and I fear it will fall another Rs 10 once the extra tendered shares returned to the shareholders.
Okay. Thank you very much
Ex-date is mentioned as 28/09/2023 and record date is 29/09/2023. My understanding is that you can buy on or before the ex-date to eligible for buyback.
But the main problem with this buyback is that 29/09/2023 is a settlement holiday and the shares bought on the ex-date will not be credited in the Demat account till 3/10/2023. That is why buying on 28th was not possible for buyback. Is something wrong in this assessment.
Thanks a lot to Gopi Ji , Neeraj Ji & other experts for letting us know about the change in the ex-date.
I am not an expert, Sumit ji .You along with Rohit Ji, Umesh ji and few others are certainly in that panel. Will remain greatful to all of you for ever.
I’m no expert sir, just a learning guy 🙃
Hello record date is changed to 28 sep… so today buying is not eligible…. kindly don’t buy for buyback
Dear all experts
Settlement holiday of bank is not concerned with credit of shares to our demat as it is done by CDSL OR NSDL and not by bank.
It is only concerned with the credit of amount for sell of shares.
Please correct me if I am wrong at any point.
If it was there then ex date could have been postponed and no date can be preponed at rundum which efdects investors interest.
https://www.bseindia.com/stock-share-price/sinclairs-hotels-ltd/sinclair/523023/
Check in corporate action …. ex date changed
Postponement of holiday to tomorrow is the reason for the fall in price.Yesyerday was the exdate for all practical purposes. Will off market transaction work here, Rohit Ji?. Nice to see your post today.
Off market transaction will not work because the shares bought today is not in the list of my holdings. So the query to Rohit Ji is withdrawn. All my LT holdings of 65 were accepted in buyback. I am greatful to you Rohit Ji.
Thanks. Just being busy with audits. Will be available regularly from 01st Oct 23.
Yes, the settlement holiday is shifted to the 29th i.e. shares bought today will be settled in the account on the 03rd Oct 23 (Friday is the settlement holiday, Sat and Sun are the weekends, and Monday is again holiday).
So, today is the Practical Ex-Date for Buyback.
Sir
Am I wrong at replying to Neeraj ?
Unfortunately, yes , even though there is logic in your argument. The last day of acquisition/ purchase for buyback was 27th. That point and position remains unchanged inspite of the postponement of the holiday. So nobody is disadvantaged here. As simple as that.
https://zerodha.com/marketintel/bulletin/361002/settlement-holiday-on-account-of-eid-e-milad-on-september-28-2023
Does this mean shares bought today would not reflect in Demat Account till 3rd Oct. Can’t buy today for buyback purposes it seems.
159…. very good price for bb
Any body has any idea about why this sudden crash in the share price today? The record date is tomorrow. Is tomorrow a market holiday? Knowledgeable members may update please.
Seems to be manipulation… Record date is 29th and also the ex date… So all bought today are eligible for Buyback… IT appears some one dumping expecting to be low buyback and rate fall after buyback..
I added 550@159.9..
Yes, I think so. I have added another 300 shares.
Exit from today’s position at the same rate.
Sumit ji, I checked up in Google.Today’s holiday stands postponed to tomorrow.
I do not find any holiday in the NSE holiday list either for today or tomorrow.
Sir
No manipulation as record date and ex date for all the shares under T+1 settlement will be same.
Correct me if I am wrong.
Yes, today also very unusual fall in the price was noticed. Manipulation should be the reason. I maintain the policy of buying on fall. Today’s fall was so violent that I could not act. Disappointed.
Please don’t buy for buyback.Today’s holiday stands postponed to tomorrow. Sinclairs is ex- buyback today.
Plz confirm this … I think we are eligible
Gopi JI, Thanks a lot for excellent information. But in the case tomorrow or 28/9 is holiday, isn’t the record date to be changed to next day. Anyway, would check in detail and better to avoid, then to be sorry.
But seen the trend, the reason is what you said.
Thanks a lot again.
Unfortunately the next two days are Saturday and Sunday. These are holidays too.
I already exited day before yesterday at price 168.60.
29 sept 2023 is record date for buyback of shares
Record date is known to be 29/9/23.
Is it worth it to buy at 170 for buyback purposes. Gopi ji what is your buy avg. for this share
I have bought the shares in the early days after the buyback was announced. My average purchase price is ₹160.27. I think tomorrow will be the last date to buy if 28th is a market holiday. You may be able to buy @ 169/ or so. I don’t think buying above 170/ is worth except for tax exempt income. Good luck to you, Sahil ji.
When the price crossed ₹173/ today, I could not resist the temptation of profit booking and sold 300 nos out of the 1000 I have been holding. I don’t know whether it was the right decision.
AR for small shareholders-
Buyback – 15,20,000 shares
Quota for small shareholders- 15% i.e – only 2,28,000 shares
No. Small shareholders shares held 65,27,888
AR – 2,28,000/65,27,888 = 3.49%
Please Correct me if i am wrong.
Where did you get the figure of 65L shares held by small shareholders? Looking at teh annual report, even in the most extreme case, I don’t see the number of small sharholders > 30L or so. (That is, including people who own upto 5000 shares). In reality, it could be around 20L shares. So entitlement ratio will be around 10%. And AR will be somewhat higher.
It’s available on bse website under advance shareholding pattern
Not really. It says “nominal share capital”. Which means investors holding < 10,000 shares (face value of each share is Rs. 2). What you want is people with nominal share capital of 24-25k. Page 13 of the annual report lists the percentages.
Correction: 2400-2500 “nominal value”. According to the annual report, the holdings are:
1-500 shares: 3.42 %
501-1000 : 1.98%
1001-5000: 6.26%
Taking all these together, We still get 30L shares or so. Now 5,000 shares is 8l+ rupees. So you need to intrapolate from the 1001-5000. Someone falling in the retail category will have 1200-1250 shares.
Please check here under ‘Resident Individuals holding nominal share capital up to Rs. 2 lakhs’
https://www.bseindia.com/corporates/shpPublicShareholder.aspx?scripcd=523023&qtrid=118.00&QtrName=June%202023
As I said before, your understanding is incorrct, and I also explained why it is so. But stick to your incorrect understanding if you wish.
Repeatedly sharing links doesn’t correct the flaw.
No sir, I am novice and i watched youtube videos regarding calculations of AR and ER so please make me understand:)
There is a large discrepancy between what you say and what the BSE site says. I have given you a hint. Try to work out what “nominal share capital” means. Its not what you think it does. Each share has a face value aka nominal value of Rs. 2. So “Resident Individuals holding nominal share capital up to Rs. 2 lakhs” means people holding < 1 Lakh shares.
Thank you for your guidance sir but aapko yeh percentages kaha se mille? I searched whole annual report 22-23 but kahi bhi nai milla …
Hi, can anybody please explain me the difference between ER and AR
1. The Entitlement Ratio represents the proportion of shares that a shareholder is entitled to offer in a buyback, based on their existing shareholding in the company as on Record Date.
2. The Acceptance Ratio indicates the percentage of shares that are likely to be accepted by the company for a buyback from the tendered shares.
Thanks Umesh, can you give an example?
For example, when Piramal was doing its buyback, the enitlement ratio was 7 for every 47 shares for retail investors, i.e 14.9%. Even if every retail holder had tendered every share, it was guaranteed that 14.9% of the shares should be accepted. Acceptance was a bit shigher, around 25% for the shares tendered.
There is nothing in this script for single share holders, because of small margin of ₹30-40 in rupee terms. Needless to state that transaction cost will be more than the margin.
Gopi Sir, My humble suggestion is to also consider %age, like 30 is ~18% of current rate… So Rs 30-40 may be Ok for value of 160-165, specially considering 1 or 1.5 month only.
Anyway its personal choice…
I don’t dare to disagree with you Sumit ji in any manner whatsoever. I will continue to remember the recommendation you had made immediately after the buyback of Welspun Enterprises which I followed only partially and ran out of patience and sold it much earlier. Subsequently the script appreciated so much and went out of my reach. I am definitely going to hold on to KRBL for few months as suggested by you. Will continue to be a humble fan and admirer of you, like SRK Ji.
Gopi ji, its collective wisdom. And I re-read your messaege is about single share and therefore correct.
I would prefer to keep PEL instead of KRBL.
Welspun ent is still looking good and I have purchased 1000@263 in recent drop… Look at PE , simply magnificent…
Thank you Sumit ji. I will buy both again after LT buyback proceeds are received
Welspun ent
10% increase today :-))
As the price is low or say not in thousand so there is no load of single share and low price looks unattractive till you calculate in percentage so Chances of AR are slightly high.Its my perception. Others may differ
Sinclair appears to be a good bet now, specifically near 161-162, I have taken position of 1100 at 161.25.
Any fall in market can be used to buy it, as some stability is their due to buyback. But would not be of much usefulness at more than 170
Thanks for your views. Just made exit from the all previous buyback positions.
Will share my review in next couple of hours.
Expected ER for Small Shareholders – 10-12% Approx
Expected AR for Small Shareholders – 35-40% Approx
I thank both Sumit ji and Rohit ji for their priceless comments.
I bought around 1100 shares at 167. Will buy another 900 in next couple of days before the record date if price remain below 170. Also, as mentioned previously I have disposed off all the open position in equity for short term as I think market is at top. However I am still accumulating shares in small chunks for long term investment available at attractive rates.
Rohit ji, please consider that although Nifty is at all time high, but it has reclaimed it now after 19th July, it means this is a rebound and expected to go beyond.
Crude is the main spoiler else the current rally may go beyond 21500 Nifty atleast….
Its good to dispose buyback positions in profit, but shares like PEL could be continued…
These are only my personal opinions…
Sumit thanks for your message. As per my trading rule, if I purchase shares for the purpose of buyback then I get exit whenever excess tendered shares are available for sale (even in losses).
In regards to the Nifty, it is trading around 22 PE which I think is near to overbought zone. I love to invest in Nifty if it trades around 20 PE or lower. Also, Nifty Midcap and Nifty Smallcap are trading at lifetime high PE so the investor has to be cautious.
I have not done any financial analysis on PEL but I do not bet on the finance sector at the moment due to the entry of Jio in the long term. I do have a lot of scripts where I am already making more than 50% and have opted for monthly SIP. Long-term means remaining invested for at least a period of more than 5 years.
Thanks Rohit ji for sharing.
AR for small shareholders-
Buyback – 15,20,000 shares
Quota for small shareholders- 15% i.e – only 2,28,000 shares
No. Small shareholders shares held 65,27,888
AR – 2,28,000/65,27,888 = 3.49%
Please Correct me if i am wrong.
You are correct .it’s 11.6 declared. Good done
Sumit ji,
Your post has inspired me to purchase more shares. Placed order @Rs.165/-. Let me see whether the order will be executed. Thank you once again.
Sinclair appears to be a good bet now, specifically near 161-162, I have taken position of 1100@161.25.
Any fall in market can be used to buy it, as some stability is their due to buyback. But would not be of much usefulness at more than 170
Record date announced:
29 September 2023
Friday
MOHSIN PATEL JI,
Thank you very much for your kind update.
Good to know.Thanks again, Mohsin ji.
When record date gonna announced
On or after 9th September
Thanks a lot Mohsin ji, for the update
Had forgotten about this one during the flury of other biggies in the field.
Time to follow up on this small but beautiful one. This is the last in the list.Next better buybacks may be after the quarterly results
What is AR in Sinclair hotel 2022 buyback?
Experience person can help us!!
@mitul..
Sinclair 2022 details
4.38% ER
14-15% AR ( approximately)
From documents.
Proposal of Buyback of up to 15,20,000 Equity shares of face value of Rs. 2/- at a price of Rs. 200 per share
Buyback announced.
Amount : 30.40cr
No of shares : 15,20,000-
Price : 200
Size : 5.60% of total equity
Tender route.
Thank you Mohsin ji for the prompt update. Percentage vice this looks so good I bought 300 already.Goodluck to all.
Which price @300 share
Yes good 5.6% equity. But need to wait about 1 month for record date.
Will wait,no problem. Added another 208
Not Interested in this due to buyback is too small as compare to other buyback and will apply in PEL and LT buyback in full fledged where gain is more and chances of stuck is less.
10 Crore Buyback at Rs 200.
I wonder how you got this information Gaurav ji. If possible, let us not share rumour and hearsays.
I trade on rumors. It was just a guess though.
Your choice is your pleasure 😊
Good you told.Thanks for the frankness.
WHAT CUD BE THE SIZE OF THIS SINCLAIRS BUYBACK & APPROX ER N AR ?