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 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:

The proposal to buyback not exceeding 15,20,000 (Fifteen lakh twenty thousand) equity shares of the Company (representing 5.6% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 200/- (Rupees two hundred only) per equity share payable in cash for an aggregate consideration not exceeding Rs.30,40,00,000/- (Rupees Thirty crore and forty lakh only)

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?

Firstly, to be eligible for the buyback the investor should have shares of  Sinclairs Hotels Limited 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 1000 Shares at CPM of Rs. 162 (2,00,000/200)
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%


        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.

    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.

      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.

          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…

      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 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.

          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.

      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

        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

      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.

      Yes good 5.6% equity. But need to wait about 1 month for record date.

          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.

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