Tips Industries Limited Buyback 2024

1)Established Legacy: Founded in 1975, Tips Industries Limited is one of the oldest entities in the Indian Media & Entertainment (M&E) industry, recognized for its significant contributions to film production and music distribution both in India and internationally.

2)Diversified Entertainment Portfolio: The company excels in the production and distribution of films, boasting a leading position in the Punjabi film industry. It has also made its mark by digitally leveraging its extensive audio content library.

3)Innovative Beginnings: Initially started as a trading firm named Jaihind Electronics in the 1980s, the Taurani family ventured into the music business, dealing with gramophone records and audio cassettes, eventually leading to the establishment of Tips Cassettes and Records Co.

4)Expansion and Growth: Over the years, Tips has expanded its manufacturing capabilities, setting up facilities for the production of audio cassettes and CDs. The company has developed a vast collection of music albums covering various genres and languages.

5)Distribution and Rights Acquisition: Tips Industries has a strong distribution network and owns the soundtrack copyrights to numerous Hindi movies. It has garnered many gold and platinum discs, highlighting its success in the music industry.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Apr 22 2024
Buyback Opening Date: Apr 28 2024
Buyback Closing Date: May 05 2024
Buyback Offer Amount: ₹ 37.18 Cr
Date of Board Meeting approving the proposal: Feb 28 2024
Date of Public Announcement: Feb 28 2024
Buyback Offer Size: 0.46%
Buyback Number of Shares: 5,95,000
FV: 1
Buyback Price: ₹ 625 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 5,95,000 (Five Lakhs Ninety Five Thousand) equity shares of the Company (representing 0.46% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 625/- (Rupees Six Hundred and Twenty-Five only) per equity share payable in cash for an aggregate consideration not exceeding Rs.37,18,75,000 (Rupees Thirty Seven Crores Eighteen Lakhs Seventy Five Thousand Only)

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 203 91 91 136 187
Expenses + 197 93 35 49 85
Operating Profit 6 -2 55 86 102
OPM % 3% -2% 61% 64% 55%
Other Income + 4 18 5 3 5
Interest 2 0 0 0 0
Depreciation 1 1 1 1 1
Profit before tax 7 14 59 89 106
Tax % 61% 21% 27% 27% 28%
Net Profit + 3 11 43 65 77
EPS in Rs 0.2 0.79 3.35 4.98 5.96
Dividend Payout % 50% 19% 4% 4% 8%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Tips Industries Limited in Demat or physical form as on the record date [To be Updated]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To be Updated] by selling your shares through your broker on NSE or BSE. 3. Then on [To be Updated], 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 320 Shares at CPM of Rs. 504 (2,00,000/625)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 161280 161280 161280 161280
No. of Shares Buyback 105 160 240 320
Buyback Profit 12705 19360 29040 38720
Profit% 7.88% 12.00% 18.01% 24.01%

8 Comments

    1 share le lo aaram se pan card alag chahiye. only you can take 1 share in each dmat

      Yes you can earn 125 rs .but is it OK for complete buyback procedure.??
      I don’t think so

    More than 26 percent appreciation in the share value in the past one month!!?

    Past buyback in 2022 was also small and AR was just 5% afik others can share the more information.

    So at first glance not looking so attractive.

    Cash Reserves is 170 cr and buyback approx can be 50-60 cr represent small size of buyback.

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