TCI Express Buyback 2022

(i) TCI XPS was established in 1996 as one of the foremost divisions of Transport Corporation of India (TCI), India’s most admired logistics company.

(ii) Today TCI XPS has been hived off to become TCI EXPRESS LIMITED, an independent company listed with stock exchanges of India. Here the focus is very clearly on express cargo distribution with greater emphasis on the burgeoning e-commerce business. They specialize in offering time definite solutions. They are the only express cargo company in India having their own set up across India reinforced with a team of over 3500+ professionals and more than 40000 pickup and delivery locations.

(iii) Infrastrucutre:
(a) An extensive network of fully computerized offices;
(b) Well connected routes for speedy movement of cargo through Hub & Spoke distribution model;
(c) Large fully containerized fleet of vehicles covering 40,000 pick up and delivery locations;
(d) A strong and dedicated workforce of committed professionals;
(e) 28 Well equipped and secure sorting centers strategically located in every state;
(f) Dedicated Customer Service department at ten regional offices;
(g) GPS enabled Vehicles;
(h) State of the art fully automated Sorting centres coming up at Pune and Gurugram.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 75 Cr
Date of Board Meeting approving the proposal: May 27 2022
Date of Public Announcement: May 27 2022
Buyback Number of Shares: 3,65,853
FV: 2
Buyback Price: ₹ 2050 Per Equity Share

Details of Buyback:

TCI EXPRESS LTD.board of directors of the company at its meeting held on i.e. 27.05.2022 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.2/-  not exceeding 3,65,853 Equity Shares (representing 0.95% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs.75 Cr Only, of the total paid-up equity share capital and free reserves of the company as on March 31, 2021 (on a stand-alone and consolidated basis) at a price of Rs.2050  on " Open Market Basis"

Salient financial parameters:

Figures in Rs. Crores Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 TTM
Sales 750 885 1,024 1,032 844 1,063
Expenses 688 794 904 910 709 884
Operating Profit 62 91 119 122 135 179
OPM % 8% 10% 12% 12% 16% 17%
Other Income + 1 2 3 4 7 9
Interest 2 4 4 1 1 1
Depreciation 4 5 7 8 9 9
Profit before tax 57 84 112 117 132 178
Tax % 34% 30% 35% 24% 24%
Net Profit 37 58 73 89 101 136
EPS in Rs 9.79 15.25 19.01 23.22 26.17 35.2
Dividend Payout % 16% 16% 16% 17% 15%
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How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “TCI Express ” announces buyback plan of its shares up to value of Rs 2050, it means that the company will be purchasing shares of "TCI Express " from the open market at a price not exceeding Rs.2050 per share. Scenario 1- If the share price is below Rs. 2050 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 2050, in that case, the company will put buy order at Rs. 2050 only and if someone is ready to sell at Rs.2050 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

No arbitrage is available.

Recommendation:

No arbitrage is available.

4 Comments

    Filatex 1212 / 1500 (80%) shares accepted. Great underdog!!

    For Birla Soft:

    For Retail : ER = 11,70,000/40566205 = 2.88% (assumption all below 2 Lac capital are applying)…
    As per precious experience AR can be 20-25%

    For General : ER = 66 30,000 / 12,60,24,092= 5.26% (Promoter having 40% are not participating)
    As per previous experience AR can be 15 -35% Such large range as depends on FII and other applicants

    OPEN Market buyback . I am avoiding totally..
    What do experts suggest?

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