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:
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?
Profit from the buyback on the bases of acceptance Ratio:
| 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:
110 Comments
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I received amount for 137/500 shares.
Rec’d the unaccepted shares.
AR is 27.60 per cent
Where did you check the AR. Kindly share the link, if any. Thanks.
no email received,
SMS received from broker – Upstox for debit of shares (Upstox)
Decent AR…!
Happy Investing$$
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..
Thank you for your kind response n post.
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.
AR is around 27.55%. OK, no problem.
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.
My broker says that the settlement is on 14.10 & not today. Is it so?
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
Any update of new buy back company?
Any update of AR retio?
I am afraid it’s not going to be good. Already 40 times over subscribed, of course, that includes all investors. I got 191/1500 ER.
Expected AR will be around 30% to 38%.
Thank u sir
What will be the Acceptance Ratio?
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
AR WILL BE Max – 20% AS PER DATA AND TENDERING BY SHAREHOLDERS
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.
Nucleus @ 700/ Tender Route.
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.
Bought 100 shares @ 600…will add more if available around 590, to thanks
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.
Thank u very much sir
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.
Thank u sir
Open date. 22.09.2021 close date.05.10.2021
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 think 12.5% is considered. For 400 they have considered 50 shares for buyback
Entitlement ratio
As per the letter submitted to EXCHANGES, ER : One share is entitled against every 8 shares held by retail investors as on the Record Date.
I received email from the company. ER is 63/500.
12.5%
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.
Also, what can be the acceptance ratio in the general/non-retail category?
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?
Yes. Approx. 17%. Acceptance ratio.
Means me apply to Pura 1300 share kar sakta hu ya only 165 share hi apply Kar sakta hu buy back?
You can apply total qty you hold as on Record Date …..extra shares will be accepted based on Bidding received by Company
Open date. 22 September 2021
Close date. 05 October. 2021
Date. Are. Finalized
Happy to. Investors
Buyback ka. Broker ka. Mail. Aaya. Means. Bidding date. Announcements?
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.
MONDAY ONWARDS STAR CEMENT PRICE ON UPSIDE.
Today it fall by Rs. 1.10
Can anyone figure out tentative ENTITLEMENT RATIO?
Hopefully upto 40%. It’s all depends on the margin between the CMP and the Buyback price during the period of buyback. Happy investing n best of luck.
TALKING ABOUT Entitlement not final AR.
Sorry Sir. ER may hopefully be around 10%.
Buy back opening date will be announce in 3 rd week of September.
*Tentative
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?
You can.
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 ).
When announced open and close date? How much time total proceeds?
Purchase 1500 before record rate.will sale @ 140 before buyback
Hello
How to know buyback participate or not
When announced open and close date approximately?
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.
Acceptance will come to know when buyback is completed.
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?
Value as on record date @ closing price
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…
26/08 is revised record date and 25/08 is ex date for Buyback
Is ex-date mentioned/documented anywhere ?
Ex-date is one day prior to record date…
Tuesday 24/08 is last date for buying Star Cement for Buyback purpose
If I buy Friday can I participate in buyback
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.
Sorry, I have forgotten that 19th is a holiday.
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)
Sorry sir, new record date is 26th aug 2021
IS it good to buy at current rate ??
Good upside of 30% is available….
Umesh ji,
Kindly enlighten me regarding the Expected AR Please.
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.
Last time also the buyback price was same and size was also 102 Crores…. And Final AR was 91%
https://investorzone.in/buyback/star-cement-limited-buyback-2019/