TCI Limited Buyback 2024

1)  About: Transport Corporation of India (TCI) was founded in 1958 and has since grown into one of India’s leading integrated supply chain and logistics solutions providers. Transport Corporation of India  (TCI) is engaged in the Business of Freight Transport, Supply Chain Solutions and Transport through Seaways.

2) Multimodal Logistics provider: TCI has emerged as the pioneer in providing integrated multimodal logistics and supply chain solutions. It provides an array of end-to-end logistics and supply chain solutions in India and SAARC countries through multiple modes, including road, rail, and sea.

3) Products and services: TCI provides a wide range of customized services in Warehousing, Port Logistics, Freight Forwarding, Coastal Shipping, End-to-End Supply Chain Solutions, Integrated Multimodal Solutions across various verticals like Automobiles, Retail and CP, Hi-tech, Healthcare/ Lifesciences and a few more.

4) Pan-India Network: TCI has an extensive network across India, with over 1,400 offices and a fleet of more than 12,000 trucks, enabling it to cover every corner of the country.

5) Global Reach: Beyond its strong presence in India, TCI also operates internationally, offering logistics and supply chain services to various global destinations through its subsidiary, TCI Global.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Sep 04 2024
Buyback Opening Date: Sep 10 2024
Buyback Closing Date: Sep 17 2024
Buyback Offer Amount: ₹ 160 Cr.
Date of Board Meeting approving the proposal: Aug 24 2024
Date of Public Announcement: Aug 24 2024
Buyback Offer Size: 1.72%
Buyback Number of Shares: 13,33,333
FV: 2
Buyback Price: ₹ 1200 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 13,33,333 (Thirteen Lakh Thirty-Three Thousand Three Hundred Thirty-Three) equity shares of the Company (representing 1.72% of the total number of equity shares in the paid up share capital of the Company) at a price of  Rs. 1200/- (Indian Rupees Twelve Hundred Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 160,00,00,000/- (Indian Rupees One Hundred and Sixty Crores only).

Salient financial parameters:

Particulars (in Cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 2,718 2,802 3,259 3,783 4,024
Expenses + 2,476 2,539 2,847 3,357 3,613
Operating Profit 241 263 412 425 411
OPM % 9% 9% 13% 11% 10%
Other Income + 34 31 44 70 119
Interest 34 27 13 10 13
Depreciation 82 93 113 121 128
Profit before tax 159 174 330 364 388
Tax % 10% 14% 11% 12% 9%
Net Profit + 143 150 293 321 354
EPS in Rs 18.53 19.08 37.45 40.91 45.12
Dividend Payout % 11% 13% 11% 17% 16%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Transport Corporation of India Limited (TCI) Limited in Demat or physical form as on the record date [04-09-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [10-09-2024] by selling your shares through your broker on NSE or BSE, 3. Then on [24-09-2024], 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 166 Shares at CPM of Rs. 1149 (2,00,000/1200)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 190734 190734 190734 190734
No. of Shares Buyback 55 83 124 166
Buyback Profit 2805 4233 6324 8466
Profit% 1.47% 2.22% 3.32% 4.44%

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