Star Cement Buyback 2021

(i) Star Cement Limited is the largest cement manufacturer in northeast India.

(ii) The plant is spread across 200 hectares of land in the idyllic town of Lumshnong, a strategic location at Meghalaya that ensures easy availability of high-grade limestone. The brand “Star Cement” has established itself as the most accredited brand of the region on grounds of both quality and fair pricing.

(iii) Star Cement Limited is one of the most profitable cement manufacturers in North East India

(iv) Product: Star Cement’s product range includes Ordinary Portland Cement (OPC 43-Grade) and (OPC 53-Grade) and Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Anti Rust Cement (ARC) in line with evolving customer needs.

(v) Plant: Star Cement’s 1.0 MTPA integrated cement plant at Lumshnong (Meghalaya) is proximate to key raw material reserves of limestone, coal, and shale. The company also added 0.67 MTPA cement unit in Meghalaya, 2.0 MTPA cement unit in Sonapur (Guwahati) and 2 grinding units in West Bengal with a total capacity of 0.67 MTPA ( though trading agreement), aggregating an installed capacity of 4.3 MTPA.

(vi) Pride: Star Cement was recognized by the Meghalaya state government for its pioneering cement plant in the backward area of Lumshnong in 2005. The company is an ISO 9001:2008, ISO 14001 & OHSAS 18001 certified Company.

(vii) Penetration: Brand “Star Cement’ is one of the largest in the Northeastern region. Its output is marketed through a network of over 6000 dealers and retailers across the North East, resulting in the largest market share in North East India. Star Cement also has a network of over 6000 dealers and retailers across West Bengal and Bihar. The Company’s institutional customers comprise Larsen & Toubro, National Hydro Power Corporation, Public Works Department, Indian Railways and Ministry of Defence.

Presently Star Cement is marketing super quality clinker to different grinding units located in India, Nepal & Bhutan.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 26 2021
Buyback Opening Date: Sep 22 2021
Buyback Closing Date: Oct 05 2021
Buyback Offer Amount: ₹ 123 Cr
Date of Board Meeting approving the proposal: Aug 13 2021
Date of Public Announcement: Aug 13 2021
Buyback Offer Size: 5.9%
Buyback Number of Shares: 82,48,580
Price Type: Tender offer
FV: 1
Buyback Price: ₹ 150 Per Equity Share

Details of Buyback:

1. The Board approved the proposal of Star Cement buyback 2021 of fully paid-up equity shares of face value  1 each of the Company for an amount not exceeding  123 Crores. 2. Star Cement Buyback 2021 Size is being 5.9% of the aggregate of the total paid-up Equity Share capital and free reserves of the Company based on consolidated audited financial statements of the Company respectively as on March 31, 2021. 3. Star Cement Buyback 2021 price is 150 per Equity Share  through the "tender offer"route, on a proportionate basis. 4. Record date for Star Cement Buyback is 25.08.2021

Salient financial parameters:

Particulars (in Cr) Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales 1,528 1,615 1,831 1,844 1,720
Expenses 1,119 1,093 1,382 1,449 1,387
Operating Profit 408 521 449 395 333
OPM % 27% 32% 25% 21% 19%
Other Income 2 4 5 29 -36
Interest 78 52 14 9 7
Depreciation 118 121 106 93 90
Profit before tax 215 353 335 322 199
Tax % 6% 5% 9% 11% 6%
Net Profit 195 331 299 286 187

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Star Cement Limited Buyback 2021 in demat or physical form as on the record date [ 26.08.2021 ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 22.09.2021 to 05.10.2021] by selling your shares through your broker on NSE or BSE. 3. Then on [ 13.10.2021], 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 1333 Shares at CMP of Rs. 116 [2,00,000/150=1333)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,54,628 1,54,628 1,54,628 1,54,628
No. of Shares buyback 439 666 999 1333
BuyBack Profit 14926 22644 33966 45322
Profit 9.6% 14.6% 21.96% 29.3%
 

Recommendation:

Review and Recommendation of Start Cement Limited Buyback 2021 by the IZ team is: 4/10. [ Expected AR= 20-25%]

110 Comments

        Manu ji,

        We are disappointed with the AR. I have expected the AR of around 35%. Of course, I honour your opinion. Thank you.

          You may purchase the shares from market CMD 105 now.. for equal number of shares rendered thru Buyback… Profit approx 35/ share

          That’s why used term “decent profit”..

          Looking forward for more Buybacks..

    Expecting a reasonably good AR, to be known tomorrow, regarding the buyback of the shares of Star Cement Limited. Already enjoying the fruits of good profit in the shares of R Systems. Good luck to all. Thank you.

      I have yet not received any intimation from company or my broker. Has anybody received official communication?

        Tarun ji,

        Please check your trading account, wherein you may find the information regarding the accepted shares of Buyback. From that, you can arrive at the percentage of AR. Thank you.

    Admin might be busy somewhere, here’s the information, may help..

    Offer Opens On Sep 22, 2021
    Offer Closes On Oct 5, 2021
    Record Date Aug 26, 2021
    Last Date for receipt of Tender Forms Oct 7, 2021
    Finalisation of Buyback Acceptance Oct 13, 2021
    Last Date for settlment of bids Oct 14, 2021
    Last Date for Extinguishment of Shares Oct 21, 2021

      Revised Dates

      Finalization of Buyback Acceptance Oct 12, 2021
      Last Date for settlement of bids is Oct 13, 2021

    Admin is not updating the latest updates regarding key and critical info for the cut off dates.
    It is leading to dilution of the faith in the site

    Tender period already started and about to complete shortly…..pls update

    No movement from last month….if AR is only 20% then this buyback will be loss making for investors who purchased only for buyback purpose

    Umeshji Request to open new page of Nucleus Software. I purchased 200@599.5 yesterday. Today it was down by 15.

    How to figure out retail submission in Individual Category ?
    4 cr shares already submitted on tender for buyback in individual category.

    Board meeting to examine the proposal for buyback of the shares of Nucleus Software is scheduled to be held on 24/9/2021. Have to observe keenly, the outcome of the board meeting to act accordingly. Please don’t be hasty to purchase the shares without having the details of the buyback like mode of the buyback, quantum of the buyback, price of the buyback etc.,Happy investing to all n all the best. Thank you.

      Company proposes to buy-back the Equity Shares of Nucleus Software upto 22,67,400 comprising of 7.81% of the total paid-up equity capital of the Company, from the equity shareholders of the Company as on the record date, through the Tender Process at a maximum price of Rs.700/- per Equity Share for an aggregate amount not exceeding Rs. 1,58,71,80,000/-.
      I am of the opinion that one can opt for the buyback at around Rs.600/-. AR may be around 25%. Thank you.

    Sir what are the benefits to tender the share on last day or one day before last day as compared to tender the shares on first or second day…please guide us, thank you….sorry for repost

      Amit ji,
      Sometimes the market price reaches or exceeds the Buyback price during the period of buyback. To watch the market price and then to act accordingly, it is always advisable to wait for at least one day before the last day of the buyback. More over it is no way advantageous to submit the shares for buyback before the suggested period. I hope it helps you to understand the topic. All the best. Thank you.

    share on last day or one day before last day as compared to tender the shares on first or second day…please guide us, thank you

    Hi friends,

    One conceptual question.

    I had 1400 share of HPCL before record date of 8th Jul (bought in May’21). I sold 600 shares on 8th Jul’21.
    Today I got a dividend of 16399 Rupees. With dividend per share of Rs 22.75 and 10% tax deducted, It looks that I received dividend only for the 800 shares and not the 600 I sold on record date. My understanding was that If shares are sold on record date, seller still receives dividend.

    Thanks a lot

      Hey Nitin,

      You are definitely eligible for dividend on shares sold on Ex-date. If 08/07/2021 was ex-date and you sold your shares on ex-date, then kindly check the fund ledger of your D-mat.

      The dividend on the balance of 600 Shares will be credited to that ledger balance. In this case, shares go to the broker’s pool account after debiting from your D-mat and the broker gets the dividend from RTA and against which the broker credit that amounts to your fund ledger.

      If it is still not reflected in your ledger balance kindly contact your broker. You will surely get a dividend on that 600 Shares.

    @ SIVARAMAKRISHNA Sir,
    Sir what to do with unaccepted shares of star cement.
    I bought 690 shares @ 115
    Will it be right decision to hold till price reaches 115…please guide, thank u

      Amit ji,

      Please submit all the 690 shares for buyback. Acceptance will always be better than Entitlement. On receipt back of the unaccepted shares into your d mat account, you have to decide whether the shares can be sold at market price or to hold for sometime depending upon the price. All the best. Thank you.

      Please ensure before posting whether the information is already furnished by someone in the site. It helps in avoiding duplication. Thank you.

    On zerodha how to apply for buyback. I got entitlement letter today. Only 10% share eligible.
    Will share price increase in stock market.

      Umesh ji,
      My sincere advice is to render the shares on the last but one day ( one day before the last date ) for buyback. Last day you may sometimes be having technical problems in the site or other problems n circumstances for various reasons. I don’t have any idea regarding Zerodha. But normally in the IPO page, you will find options like Buyback, OFS ( offer for sale ) , place order etc., . Please check up. If you still find difficulty you may approach Zerodha for necessary guidance. Thank you n all the best. Please update after done with.

      Umesh Ji , FInd the steps . Console –> Portfolio –> Corporate action .

      I am also first time applying .

      Sir what are the benefits to tender the share on last day or one day before last day as compared to tender the shares on first or second day…please guide us, thank you

    Friends – Few Queries:
    1. Say I have 1330 shares. I am entitled to tender 169 shares. Can I tender/offer full 1330 shares also?
    2. If I tender the shares online (I have zerodha account), do I need to fill any other form offline or follow any other process to successfully tender the shares or the online bid on zerodha is sufficient?

    Thanks for the help!

    I got the email about Star cement buyback today.
    I had 3000 shares of Star cement on the record date of 26th August. I got entitlement of only 52 shares, which is less than 2%. I think this is because my holding is exceeding 2 Lakhs and it exceeds the retail category limit. My question is – if I tender shares worth < 2 lakhs, can I be considered in the retail category? Please advise. I was not aware of this rule.

    Mere pass 1300 share but mujhe mail aaya k me 165 share k liye hi Eligible hu. Aur kisi ko aisha mail aaya hai kya?

    Open date. 22 September 2021
    Close date. 05 October. 2021

    Date. Are. Finalized

    Happy to. Investors

    Ye week me date anounce ho sakti hai kya? Ya kisi ko perfect announce date pata chale to inform kijiye.

    Santosh Singh ji,

    I have reproduced your detailed illustrative explanation regarding the criteria for retail category in c/w the buyback of shares in another site with the belief n confidence that you won’t mind my doing so as it helps many a people to understand the subject comprehensively. If i caused any inconvenience n embarrassment by doing so, I wholeheartedly apologise. Thank you.

      Record date and opening date k bich me hum trading kar sakte hai k nahi? Agar record date pe mere pass 1330 share hai aur record date and opening date k bich me mere pass 2000 share ho jaye or wapish opening date me 1330 share rakhu to me buyback me participate kar sakta hu?

      As per my knowledge only record date is counted. And what u submit for buyback is counted. Other things will be egnore.

        Shares held on record date only will be considered for acceptance regarding the buyback of shares. If you render more no. of shares than that , they will not accept and you will be asked to submit the exact number of shares ( held on record date ).

    The meeting of board of directors of Kaveri seed company is scheduled to be held on 25/8/2021 to consider buyback of the shares. Please be attentive and have the details like Buyback price, Mode of Buyback, Quantity of buyback, Record Date immediately by updating the information to get maximum benefit.

      Buyback is through Open Offer @ not exceeding Rs.850/-. Max size 14,11,780 shares. Please be cautious and act accordingly.

    Means.
    26 th. Date. Record. Date. So.
    Same. Day. Results. Declare. Or. Take. Time??

    Please Help I am new. In market
    So. Record date. I have. Some. Shares in my. Demat and. I. Participant. For. Buyback

    So I want to know. When. Company. Declare. Results. ?

    How many. Shares accept and. Another. Shares. Add. In my. Demat.

      Santosh sir.
      When is start Acceptance??
      Approx date

      And. How to know announcements. Date

    For being considered under retail category the value of investment should not exceed Rs.2 lacs.
    For calculating this limit of Rs.2 lacs shall we have to take the cmp as on the record date or else
    the buyback price? Can anyone please clarify?

      For calculating the retail category, the market price of stock at the end of the day for the highest volume exchange is taken…… Below is an example from one of the Buyback…..

      As defined under Regulation 2(i)(n) of the Buyback Regulations, a “Small Shareholder” is a Shareholder who holds Equity Shares whose market value, on the
      basis of closing price on Stock Exchanges as on Record Date, is not more than ₹ 200,000/- (Rupees two hundred thousand only). As on the Record Date, the volume of Equity Shares traded on BSE was 15,887 Equity shares and on NSE was 1,14,137 Equity Shares. Accordingly, NSE, being the stock exchange with highest trading volume, the closing price was ₹ 184.40 and hence all Shareholders holding not more than 1,084 Equity Shares as on the Record Date are classified as ‘Small Shareholders’for the purpose of the Buyback Offer…..

      Hope it is clear now….

        Santhosh Singh ji,

        Thank you very much for your illustrative response. Now, it’s very clear. I appreciate your kindness to spare your precious time to explain in detail for the benefit of all the readers. Very kind of you.

        Santosh Singh ji,

        I have reproduced your detailed illustrative explanation regarding the criteria for retail category in c/w the buyback of shares in another site with the belief n confidence that you won’t mind my doing so as it helps many a people to understand the subject comprehensively. If i caused any inconvenience n embarrassment by doing so, I wholeheartedly apologise. Thank you.

      Santosh SIngh ji and U N Kedia ji,
      Thanks your kind clarification reg closing price for being considered under retail category.

    Hello Paliwal sir,
    If I buy 500 share on 24 August.
    And I sell on 25, or 26 august.
    Am I eligible for buyback. If I buy 30 %share later to apply for buyback.
    I read your another comment. I got this idea.

      First of all if you buy on 24th August, the shares will be credited on 26th August (T+2)….Record date is 26.08.2021, so, you should sell on 27.08.2021…

      Sunil ji,
      Buy tomorrow as many people have the tendency to purchase the shares just before the Record Date (Friday) to participate in the buyback and possibilities of increase in the price are more.

          Sunil ji,
          Record date is changed to 26/8/2021. You can buy on Monday also, if not purchased today.

          Sir, record date is 25th August so how its possible if we buy on monday record date never change

          Date: 16th August, 2021
          The Listing Department,
          National Stock Exchange of India Limited
          Exchange Plaza, C-1, Block-G
          Bandra Kurla complex, Bandra-East
          Mumbai-400 051
          Stock code: STARCEMENT
          BSE Limited
          Phiroze Jeejeebhoy Towers
          Dalal Street
          Mumbai-400 001
          Stock code: 540575
          Dear Sir(s),
          Subject: Board Resolution – Revised Record Date for the Purpose of Buy-back of Equity
          Shares of the Company
          We write with reference to our letter dated 14th August, 2021 enclosing copy of Board
          Resolution.
          In view of revision of Record date to Thursday, 26th August, 2021, enclosed please find a
          copy of revised Board Resolution for your information and record.
          Thanking you,
          Yours Faithfully,
          For Star Cement Limited
          16-08-2021
          X
          Debabrata Thakurta
          Company Secretary
          Signed by: THAKURTA DEBABRATA
          Debabrata Thakurta
          (Company Secretary)

      Why isnt Star cement price going up post buyback announcement. while generally share price goes up closer to buyback record date

        Because many people bought just before the record date and sell the specific numbers of shares after record date which they feel will not be accepted in buyback.

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