Tanla Solutions Limited Buyback 2020

(i) The journey of Tanla Solutions has started with a small group of mobile messaging experts, with base in Hyderabad, India, to create a world-class messaging service.

(ii) From 2000 till now, they have come a long way. Today, they are proud to have achieved global leadership in their domain as one of the largest Cloud communication providers in the world.

(iii) They are innovating the way the world communicates, continuously raising the bar through enhanced speed, ease, and simplicity of our Cloud solutions.

(iv) Over the years, they have developed and delivered cutting-edge technology and products which meet the discerning needs of a diverse clientele, from enterprises to carriers across geographies. The standards they have set are industry-defying, difficult to surpass even by us. But then, that’s what we do best, beating us at our own game.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jun 10 2020
Buyback Opening Date: Jul 01 2020
Buyback Closing Date: Jul 14 2020
Buyback Offer Amount: ₹ 154 Cr
Date of Board Meeting approving the proposal: Apr 22 2020
Date of Public Announcement: Apr 22 2020
Buyback Offer Size: 13.54%
Buyback Number of Shares: 1,90,12,345
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 81 Per Equity Share

Details of Buyback:

The board has decided that the company will do a buyback of equity shares having a face value of Re. 1 (Indian Rupee One Only) each (the "Equity Shares"), for an aggregate amount not exceeding Rs. 154 Cr ("Maximum Buyback Size") and at a price not exceeding Rs. 81/-  per Equity Share ("Maximum Buyback Price"), through the "Tender Route". The resultant Equity Shares to be bought back at the Buyback Offer Price are 1,90,12,345 Equity Shares, representing 12.49 %, of the total Equity Shares in the existing total paid-up equity share capital of the Company and 16.44 % and 13.02 % of the total Equity Shares in the total paid-up equity share capital of the Company as on March 31, 2019, and March 31, 2020, respectively.

Salient financial parameters:

 
Particulars( cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Sales 242 432 579 792 1,004
Expenses 166 362 523 726 907
Operating Profit 77 70 56 66 97
OPM % 32% 16% 10% 8% 10%
Other Income 5 -2 2 5 11
Interest 0 1 0 0 0
Depreciation 76 53 20 57 73
Profit before tax 5 14 39 13 33
Tax % 53% 47% -5% -51% 11%
Net Profit 3 7 41 19 30
EPS in Rs 0.26 0.67 3.81 1.7 2.58
Source: Screener.in

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Tanla Solutions Limited Buyback 2020 in Demat or physical form as on record date on [ 10.06.2020  ] 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [ 01.07.2020 to 14.07.2020 ] by selling your shares through your broker on NSE or BSE. 3. Then on [ 23.07.2020 ], the settlement will be done for accepted shares and unaccepted shares will be returned to your Demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 2469 Shares at CMP of Rs.65( 2,00,000/81=2469)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 160493 160493 160493 160493
No. of Shares buyback 814.77 1234.5 1851.75 2469
BuyBack Profit 13,036 19,752 29,628 39,504
Profit 8.12% 12.31% 18.46% 24.61%

Recommendation:

Review and Recommendation of Tanla Solutions Limited Buyback 2020 from our side is: Rating: 4/10 [ Expected AR ] = 20%

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