Symphony Ltd Buyback 2023

i. Symphony, an Indian multinational company with offices in more than 60 countries, makes more air coolers than any other company in the world. Symphony is a market leader that has been providing comfort cooling to its customers for generations. From inventions to innovations, being responsible with energy to taking care of the environment, Symphony has done it all.

ii. Symphony coolers are so popular in homes, businesses, and factories that the word “cooling” has become synonymous with the brand.

iii. Symphony Limited was started in 1988 in Gujarat, India. It created a new type of evaporative air-cooling in India and took it all over the world. As a disruptor in a very unorganised industry, the company has set high standards by defining the golden standard of air cooling.

 

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 29 2023
Buyback Offer Amount: ₹ 200 Cr
Date of Board Meeting approving the proposal: Feb 08 2023
Date of Public Announcement: Feb 08 2023
Buyback Offer Size: 1.42%
Buyback Number of Shares: 10,00,000
Price Type: Tender offer
FV: 2
Buyback Price: ₹ 2000 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 10,00,000 (Ten Lakh) equity shares of face value of Rs. 2 of the Company (representing 1.43% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 2,000 (Rupees Two Thousand Only) per equity share payable in cash for an aggregate consideration not exceeding 200,00,00,000 Cr (Rupees Two Hundred Crore Only).
 

Salient financial parameters:

Particluars (in cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales 798 844 1,103 900 1,039
Expenses 579 711 889 759 877
Operating Profit 220 133 213 140 162
OPM % 28% 16% 19% 16% 16%
Other Income 54 15 51 24 40
Interest 2 8 13 12 10
Depreciation 7 10 21 21 24
Profit before tax 265 130 230 131 168
Tax % 27% 30% 21% 18% 28%
Net Profit 193 92 182 107 121
EPS in Rs 27.52 13.19 25.94 15.34 17.2

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Symphony Limited 2023 in  Demat or physical form as on the record date [29.03.2023]
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 100 Shares at CMP of Rs. 1,050 (2,00,000/2,000)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,05,000 1,05,000 1,05,000 1,05,000
No. of Shares Buyback 33 50 75 100
Buyback Profit 31,350 47,500 71,250 95,000
Profit % 29.80% 45.20% 67.80% 90.40%

19 Comments

    SYMPHONY BUY BACK@2000 CURRENT RATE 1090LIKELY ACCEPTANCE RATIO AROUND 25% FOR SMALL INVESTOR SHARE 52 WEEK LOW 821 ALL TIME HIGH 2213 RECORD DATE 29 MARCH 2023 SO FOR BUYBACK ENTITLEMENT TODAY IS LAST DAY FOR BUYING

    Reply

      If all above prices are reached even though we will make 2.5% profit .if go below 820 then this profit may get reduced.

      Reply

    The offer size is only 1.43% and not 24.76% as written above.
    1.5 % and 25% are very different and can lead to various incorrect decisions.
    None would like to buyback in 1.5% while all should buy for 25%..
    Its better for investor zone to be carful to retain its credibility.

    Reply

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