Team Lease Services Ltd Buyback 2023

i. Founded in 2002, it is one of the largest staffing company in India. A Fortune India 500 company listed on the NSE & BSE, TeamLease has hired 17 lakh people over the last 17 years and has 2 lakh+ open jobs every day. One of India’s fastest growing employers. TeamLease also operates India’s first Vocational University and fastest growing PPP National Apprenticeship Program. The company offers solutions to large, medium and small clients across the 3Es of Employment (1.5lakh+ associates), Employability (2 lakh+students/trainees) and Ease-of-doing Business (55,000+ compliances).

ii. Business model of Teamlease:

a) Employment provider- Finding a right candidate for the company is always a difficult task and many times invovles lot of opex cost. Therein, Teamlease with their experience provides the facility of staffing solution. They give service as General Staff, & Specialised Staff. Moreover, as a corporate you can also get employee directly from the company’s portal such as Fresherworld, by posting online jobs.

b) Employability- In India, we say most of the today’s youth are not getting jobs as per their education, the reason being, lack of soft skills and aptitude, which is the utmost requirement to get a job in the corporate world. So, here Teamlease with programs/facility such as NETAP, Schollguru, and Teamlease Skills University, trained students to equip themselves for the corporate jobs.

c) Ease of Doing Business- Many times companies are not aware of labour laws, regulatory filing related to EPS/EPF for employees which sometimes results into regulatory compliance issues. Therein , Teamlease provide consultancy service to these companies.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Apr 03 2023
Buyback Opening Date: May 12 2023
Buyback Closing Date: May 25 2023
Buyback Offer Amount: ₹ 100 Cr
Date of Board Meeting approving the proposal: Feb 03 2023
Date of Public Announcement: Feb 03 2023
Buyback Offer Size: 1.92%
Buyback Number of Shares: 3,27,869
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 3,050 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 3,27,869 (Three Lakh Twenty-Seven Thousand Eight Hundred Sixty-Nine) equity shares of face value of Rs. 10 of the Company (representing 1.92% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 3,050 (Rupees Three Thousand Fifty Only) per equity share payable in cash for an aggregate consideration not exceeding 100,00,00,000 Cr (Rupees One Hundred Crore Only).

Salient financial parameters:

Particulars (in Crores) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales 3,624 4,448 5,201 4,881 6,480
Expenses 3,556 4,354 5,108 4,784 6,337
Operating Profit 69 94 93 97 142
OPM % 2% 2% 2% 2% 2%
Other Income 16 18 31 32 -52
Interest 2 5 12 7 4
Depreciation 9 11 29 34 41
Profit before tax 73 96 83 89 46
Tax % -1% -2% 58% 11% 13%
Net Profit 73 98 35 78 39
EPS in Rs 42.97 57.34 20.46 45.33 22.48
Source: Screener

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of TeamLease Services Limited 2023 in  Demat or physical form as on the record date [03.04.2023]
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [12.05.2023] by selling your shares through your broker on NSE or BSE.
3. Then on [05.06.2023], 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 66 Shares at CPM of Rs. 2,328 (2,00,000/3,050)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 1,53,648 1,53,648 1,53,648 1,53,648
(ii) No.of Shares Buyback 22 33 50 66
(iii) Buy Back Profit 15,884 23,826 36,100 47,652
(iv) Profit % 10.33% 15.50% 23.49% 31.01%

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