Techno Electric & Engineering Buyback 2018

TEECL is a leading EPC services company in India’s power sector. The Company provides engineering, procurement, and construction services to all three industry segments(generation, transmission and distribution). It was engaged in setting up (in one capacity or other) over 50% of India’s thermal power generating capacity and a major portion of the national power grid. The Company also possesses specific domain knowledge that enables it to serve the EPC needs of power, steel, fertilizer, metals and petrochemicals sectors, among others.

The two major business segments of the Company’s presence comprise engineering, procurement and construction (EPC) for the power sector and power generation (non-conventional).

The Company is headquartered in Kolkata, West Bengal (India) with marketing offices in three Indian states.

The Company employs 400 professionals (engineering, commercial, graduates and postgraduates). The engineering team possessed an average experience of more than 29 years as on March 31, 2015.

Business Model of the Company

1. EPC-

Power Generation> Transmission and Distribution > Industrial Sector

They provide EPC services to all three segments of India’s power sector – generation, transmission and distribution.

2. Wind Generation

They are an independent renewable energy producer with 129.9 MW wind energy capacity.

3. PPP

They are associated with building transmission linkages. They have a 25- year concession in consortium with Kalpataru Power for a transmission link at
Jhajjar, Haryana.

Buy Back Offer Deal:

Buyback Type: Tender offer
Buyback Record Date: Jan 03 2019
Buyback Opening Date: Mar 29 2019
Buyback Closing Date: Apr 11 2019
Buyback Offer Amount: ₹ 109,97,84,000
Date of Board Meeting approving the proposal: Dec 13 2018
Date of Public Announcement: Dec 13 2018
Buyback Offer Size: 2.38%
Buyback Number of Shares: 26,82,400
FV: 2
Buyback Price: ₹ 410 Per Equity Share

Details of Buyback:

The Board of Directors of the Company ("Board") at their meeting held today i.e. 13th December, 2018 have, inter-alia, approved the Buy-back of up to 26,82,400 (Twenty Six Lakhs Eighty Two Thousand Four Hundred) equity shares ("Buy-back") from all the existing shareholders of the Company as on record date on a proportionate basis through the "Tender Offer" method in accordance with the provisions of Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (the "Buy-back Regulations" as amended) and the Companies Act, 2013 and rules made thereunder at a price of Rs. 410/- (Rupees Four Hundred Ten Only) per equity share, aggregating to an amount of Rs. 109,97,84,000 (Rupees One Hundred Nine Crores Ninety-Seven Lakhs Eighty Four Thousand Only). The maximum shares proposed to be bought back represent 2.38% of the total paid up equity shares of the Company and the aggregate consideration for proposed buyback represent 9.10% of the aggregate of the paid up equity share capital and free reserves as per the audited financial statements of the Company for the financial year ended 31" March, 2018.

Salient financial parameters:

Year Revenue(Cr) PAT(Cr) EBITDA EPS
2014 708.49 87.49 192.53 7.66*
2015 793.89 105.08 211.42 9.21*
2016 1,097.20 119.69 220.58 10.48*
2017 1,356.72 192.96 312.51 16.9
2018 1294.36 192.96 294.11 18.25
*Adjusted on issues of bonus shares in the ratio of 1:1.

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Techno Electric & Engineering Buyback 2018 in demat or physical form as on the record date [03.01.2019]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 29.03.2019 to 11.04.2019 ] by selling your shares through your broker on NSE or BSE. 3. Then on [Not Announced Yet], 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 487 Shares at CMP of Rs. 245[2,00,000/410=487)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,19,512 1,19,512 1,19,512 1,19,512
No. of Shares buyback 160 243 365 487
BuyBack Profit 26400 40095 60225 80355
Profit 22% 34% 50% 67%

Recommendation:

Review and Recommendation of Techno Electric & Engineering Buyback 2018 by IZ team is: 5/10 Fair: 1-5 Good:5-7 Excellent: 7-10

Company Contact Details:

Techno Electric & Engineering Limited 508-509, Skipper Corner 88, Nehru Place, Delhi 110019

    In one of the Buyback, i got mail, in which they mentioned Buy-Back Rejection message as

    “Reason for rejection : NOT IN MASTER”.

    What does it mean..????

    I did not receive the mail from them, however I was holding 480 shares on the ex date. Is there any possibility how can I check my eligibility including number of shares ?? I tried with linkintime but it’s not showing for Techno. Some one pls guide

      Hi,

      I got Buy-Back, Letter of Offer email, on March-22 , with entitlement-ratio of 20%, (20 out of 100 shares).
      Even one of my friend got similar mail on March-24..

      You should place a bid with your broker immediately. If you are entitled, your bid will be considered.

      currently it is 20.94% acceptance ration, if any one has not apply then also maximum possibility upto 25%.

      So better sell remaining 75% in the open market, as per present scenario it will go down upto 230.

      As per the tenders by 8th April 2019 4.15pm, individual quota tenders are at around 9.7L (included retail investors).
      Reserved 4L shares for retail investers.
      So as of now AR is around 41.5%.

      Remember three more days to go.
      Let’s see approximate AR on 11th EOD.

    Motilal Oswal is fraud broker , they removed shares from my demat on same date of trade even before settlement should happen on T+2 days , my wife got buyback offer from reliance securities even she sold shares on same date . On enquiry Motilal said do whatever you want to do we dont care .

    What is the AR for general category investor here ? As per their filling management is not participating in the buyback , So only few retail investors there along with FII and DII etc .

    Not received any offer letter even though I had shares on record date , is there any link or site where i can check my entitlement ?

    Dear all

    At last wait is over..got lof . date 29.3.19 to 11.04.19….longest BB I have seen so far….but poor AR.

    Received offer letter. 206/981. Opens Friday, 29 March 19, closes Thursday, 11 April 19

      Yeah, me too.
      Can Anyone empower on what is the Entitlement Ratio declared and what supposed to be Acceptance Ratio
      Thanks in advance 🙏

      Dear Prasad, I am wondering that 206/981, as per record date price 981 shares worth is more than 2L rupees.

      I got offer for 125 out of holding 600 (ER is 20.8%).
      Based on the numbers you mentioned for yours is also around 20.9% ER.

      If possible, Please clarify.

        206/981 (= 21 %) is the entitlement ratio, not my entitlement. You can see page 28 of the offer letter.

        I have only 225 shares and got an entitlement of 47 shares.

    Boom… Boom…. It is running Rs 262+ per share. Is there any news or anything which leads this sudden change?

    Is Their any News come regarding Buyback.? Price Jump almost 6% in Last 5 mint of Trade.

    Any update on its buyback dates…almost 2.5 month past after record date….what is max limit..

    Has SEBI approved the buyback??? Or is it the same case like L&T
    Nearly 2 months have passed after the record date ….
    Has someone got the idea where this is stuck…Also, has the the shareholders approved the buyback

    Why techno not send offer letter still??

    Is there any rule or guidelines abt buyback time limit after record date

    Or techno b kya larsen ki tarah cancel karega buyback??

    It is falling on daily basis after rd…Any idia for opening day. Can I buy to avg for mini. Loss

    Appreciate if someone can update number of retail share holders and number of shares held by them as on closing of record date??

        Just wanted to presume buyback AR if anyone can have data or as same as mentioned by someone in comment box dated Jan, 10

    One month over after record date. No further update yet.
    Any one have any idea? When will be the dates for BuyBack. Please update.

      I think it will announce on the date of Q3 result i.e. 9th Feb 2019.

      It will be really bad acceptance ratio based on the price GAP between current price and Buyback price

    Only 12730 Shareholders on 31st Dec 2018. Let us see how many additional people Jumped in till Record Date. Looks good for some decent gain if the holders on Record date are less than 15,000

      Do you noticed the number of shareholders after Record Date I.e. after 3rd January? Do they crossed 15000 or below? Not sure why company is having this much footage after declaring Record Date, and I believe they announced Results too. No info on actual buyback, it’s surprising and annoying too.

    Today I bought some Share of this stock. 2 Jan Ex date, 3 Jan Record date, is those share are eligible for buyback? Pls ans Market Wizard.

    last year buyback was announced on 13.02.2017:

    Price on 13.02.2017= 373
    Buyback Price= 400
    Record Date= 03.03.2017
    Total Size = 8.30%
    Opened date= 17.03.2017
    Close date= 31.03.2017

    Final Letter of offer was issued on 13.03.2017( This letter provides the final number of shareholders under retail quota as on record date.).

    As per this letter the Entitlement was= 9.55%( 71 equity shares out of every 743 fully paid up equity shares as on record date i.e., March 03, 2017)

    However, final Acceptance ratio was close to 50% because till the buyback closes on 31.03.2017 , the price of share was close to 400, so many people would have sold shares in the open market and not have tenderd shares in the buyuback thereby imprving AR.

    In 2018, the Price difference between Current Market Price and Buyback price is huge. So lot of people will participate in the buyback. So unless price moves significanlty towads the buyback price the chances of high AR is low.

    Hopes it clears to everyone. Happy Investing . Happy Christmas to all Fellow Board members. Hope New year bring joy to all of us.

      should we participate in it.
      As you said AR will be low as huge difference between CMP and B.P

      is the stock worth keeping after Buyback(is it fairly valued) and is techno electric a good company

    Hello Experts/Members, Can you please let us know what was the acceptance ratio for Techno Electric buyback which they did in March 2017? This will be very helping in understanding whether to participate in this buyback or not? Thanks

    Hello Market Wizard, Can you please let us know what was the acceptance ratio for Techno Electric buyback which they did in March 2017? This will be very helping in understanding whether to participate in this buyback or not? Thanks

    What is the last day to buy shares of this company to get entitlement? As 1st Jan is a bank holiday but the exchanges will be operating?

      Liquidity is less in Techno Electric. Moreover, you can’t do intraday trading in the shares as it is under BE category of shares. The movement in share price is quite erratic. However, if you can take the risk than you can take a position. The risk is more here.

      Disclaimer: I have done investment in this share.

    To save dividend distribution tax companies are coming with buyback. Retail investers should be cautious before entering in any stock only for buyback purpose.

      But Sir, the Promoters are not participating in the buyback, so the point of saving DDT is not valid here.

    The board fixed JANUARY 3 as the RECORD DATE for determining the members of the company who are eligible to participate in the buyback.

    Total number of Shares reserved for Retail Shareholders are: 4,02,306

    As per Shareholding Pattern on 31.03.2018, the number of shareholders holding shares between 0 to 500 were: 18,277,88

    So on that basis, the Acceptance Ratio could be 22%.

      what is UC

      Also if promoters don’t participate, will it make a huge difference for retail acceptance ratio
      In my opinion no as every promoter will be holding shares worth crores and not below 2 lakh
      enlighten me if i am wrong

    The company got amalgamated with Simran Wind Power Energy on 25 July 2018 and after amalgamation got listed on NSE on 04.12.2018.

    History of the Company:

    1. 1963-Started operations as an EPC player.

    2. 1980 – Announced IPO of 20 lakhs through a public listing of the Company.

    3. 1990 -Forayed into the Power Transmission and Distribution (T&D) segment.

    4. 2009- Undertook wind power generation through 95.45 MW acquisition.

    5. 2010– Engaged in Transmission BOOT projects via a PPP contract for a 400/220 kV, 2,400 MVA (105-km long) transmission link at Jhajjar for the Haryana Vidyut Prasaran Nigam Limited.

    6. 2017– Sold 33 MW of wind power capacity Bagged a concession for 400/220 kV, 2 x 500 MVA substation at New Kohima, Nagaland, under Transmission System for North Eastern Region Strengthening Scheme (NRESS-VI).

    *Buyback*
    Indian Energy Exchange Ltd has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 20/12/2018 ,inter alia, to consider and approve proposal for buyback

    Mutual funds and FIIs have more than 24% holding in this company.

    The Board noted the intention of the Promoter of the Company not to participate in the proposed
    Buy-back. The Buy-back of/er does not require the approval of the shareholders of the Company.