Triveni Engineering & Industries Limited Buyback 2020

Triveni Engineering & Industries Limited is a focused, growing corporation having core competencies in the areas of sugar and engineering. The Company is one of the largest sugar manufacturers in India and the market leader in its engineering businesses comprising high-speed gears, gearboxes, and water treatment solutions.

With 7 sugar mills, 6 co-generation units, and 1 distillery spread over 8 locations in Uttar Pradesh, we progressively engage with over 250,000 farmers through our cane marketing and development programs.

As the largest Indian manufacturer of high-speed and niche low-speed gears and gearboxes, Triveni commands a dominant market share in the gears market in the region. As a focussed player in the water treatment domain, we offer end-to-end services & product mix in the technology spectrum of water and wastewater treatment. We have dedicated manufacturing and R&D unit each for Gear and Water Treatment Applications at Mysore and Noida respectively.

The two major business segments – sugar and engineering – are mutually exclusive in terms of growth factors and the environment. The sugar business is immune to the upheavals in the global economy, and is dependent only on the sugar cycle. Our engineering businesses cater to the two most critical industries – power and water.

Buy Back Offer Deal:

Buyback Type: Tender
Buyback Record Date: Aug 28 2020
Buyback Opening Date: Oct 05 2020
Buyback Closing Date: Oct 16 2020
Buyback Offer Amount: ₹ 65 Cr
Date of Board Meeting approving the proposal: Aug 10 2020
Date of Public Announcement: Aug 10 2020
Buyback Offer Size: 2.50%
Buyback Number of Shares: 61,90,000
Price Type: Tender
FV: 1
Buyback Price: ₹ 105 Per Equity Share

Details of Buyback:

Board on 10.08.2020, has approved the buyback of fully paid-up Equity Shares of the face value of ~ 1 (Rupee One only) each not exceeding 61,90,000 Equity Shares (representing 2.50% of the total paid-up equity share capital of the Company as on March 31, 2020) at a price of 105 per Equity Share payable in cash for an aggregate amount not exceeding 64,99,50,000

Salient financial parameters:

Particulars(in Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 2,061 1,915 2,824 3,370 3,152 4,437
Expenses 2,079 1,790 2,302 3,094 2,842 3,893
Operating Profit -18 125 522 276 309 543
OPM % -1% 7% 18% 8% 10% 12%
Other Income 30 42 -36 33 83 57
Interest 122 115 127 85 68 79
Depreciation 59 59 57 55 57 75
Profit before tax -169 -7 302 169 268 446
Tax % 10% 1% 16% 29% 19%
Net Profit -152 -7 253 119 216 335
EPS in Rs 0 0 9.81 4.62 8.38 13.37
Source: Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Triveni Engineering & Industries Limited Buyback 2020 in demat or physical form as on the record date [28.08.2020] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [05.10.2020 to 16.10.2020] by selling your shares through your broker on NSE or BSE. 3. Then on [ 27.10.2020 ], 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 1904 Shares at CMP of Rs. 72 [2,00,000/105=1904)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,37,142 1,37,142 1,37,142 1,37,142
No. of Shares buyback 628 952 1428 1904
BuyBack Profit 20724 31416 47124 62832
Profit 15% 22.9% 35% 45%

Recommendation:

Review and Recommendation of Triveni Engineering & Industries Limited Buyback 2020 by IZ team is: 3/10 Fair: 1-5 Good: 5-7 Excellent: 7-10 [ The buyback size is small. The AR would be around 15-20%. The stock has already run from 55 to 72 in a couple of sessions.]

47 Comments

    i have bought 200 shares before record date and 42 shares accepted in buyback and remaining shares got rejected back into my dmat account. i did not receive money for the accepted 42 shares till now…when the settlement is going to happen, please reply back if anyone having an idea on this.
    did anyone got settlement for the shares accepted in buyback?

    Final Bid:- 13,00,49,961 (At Closure of Bid Timing on 16-10-2020)
    Subscription:- 21.01 x

    As Of 13/10/20 (3 days remaining )
    Poor AR Expected .
    Total Bids (Confirmed+Pending):- 70771784
    Subscription:- Near about 11.5x

    Hello Market watch / other learned members
    I had bought 200 shares before record date and sold 150 afterwards at very slight profit.
    Now I have received letter for entitlement of 12. I fell that all 50 would be bought back (25%). What do you suggest?
    Should I sell some more at (10%) profit now or surrender in Buyback only?
    Request your kind advice

      The price will stay at this range of 67-75 until until october end as the market will continue to be volatile within this levels .So,you can tender all 50 and sell the remaining unaccepted part at a slight profit (hopefully) after its refunded.

    Triveni Buyback dates declared:-
    Tender Period:- 5th Oct. ’20-16th Oct. ’20
    Settlement (Payment & Shares Refund) :- 27 Oct. ’20
    Entitlement %:- 6.38%

      Dhanuka Agri last date to buy was today 24 sep…. tomorrow is ex date .So if you buy on 25 sep you will not be eligible for buyback due to t2 settlement as 28 sep is record date.

          Please be patient the record date(30 Sept.’20) for rites has not passed yet .The entire process takes more than 2 months .

        dhanuka around 50-75 % as can be seen from there previous buybacks and as for rites its complicated and will depend on the volatility in the share till the buyback tender date is announced.

    Buy 1904 Shares at CMP of Rs. 72 [2,00,000/105=1904) was incorrect .

    one could buy about 2500 shares to take part in buyback

      This is the general calculation to avoid the change of status of the investor from Retail to HNI, in case the price goes above 105.

    It is advisable to buy for buy back at current rate ? Just two days remaining for record date

    @MW
    Please update about MPS Ltd. Buyback .
    Type:- Tender Offer
    Announcement Date:-11-Aug-20
    Promoter Participation in Buyback- Yes
    Record Date:- Friday, August 24, 2020
    Buyback Size:- 5,66,666 Shares (3.04%)
    Buyback Price:- Rs.600 /share .

      Bit Risky . Enter it within the range of 75-77 at the most .Place AMO for tomorrow or keep it on your watchlist you will surely get it even lower than 75 (if you are lucky) before the record date just make sure to buy it before Aug 27

        Its strong fundamentally but if there is weakness in nifty and right now its in 75-77 zone so you can buy in dips of 0.5 – 1 points.

    Please update about FDC Buyback .
    Type:- Tender Offer
    Announcement Date:-7-Aug-20
    Promoter Participation in Buyback- Yes
    Record Date:- Friday, August 21, 2020
    Buyback Size:- 21,63,000 Shares (1.27%)
    Buyback Price:- Rs.450 /share .

    The 2019 buyback was also very fast.
    Announced – 03.06.2019, share price-76
    Record date- 19.06.2019- 65
    Ex-Date- 18.06.2019- 73
    Unaccepted shares given back on 14.08.2019- Share price was 50.

    Final AR was 33%.

    Triveni engineering board approved buyback at₹105

    Aug 28 record date

    Promoter Participation in Buyback- Yes
    Record Date:- Friday, August 28, 2020
    Buyback Size:- 61,90,000 Shares (2.50%)
    Buyback Price:- Rs.105 /share .

      2.5% is too low… Are you sure??
      25% reserved for Retail i.e 0.625%

      Current Retail holding 13%
      If 30% apply in buyback…~ 4% would fight for 0.625
      Acceptance ratio 15-16%

        Yes 2.50% of the total paid-up equity share capital of the Company as on March
        31, 2020 .There is strong upside from CMP due to good results YoY…though QoQ its a bit subdued due to the pandemic >

        As Of Aug 7 ‘2020
        Category of Shareholder—- No. of Shares —-% to the existing Equity
        Share capital
        Promoters and Promoter Group—- 169,462,677—- 68.35

        Foreign Investors (Including Non-Resident Indians, FIls) —-9,146,448 —–3.69

        Financial Institutions/Banks —–542,909 —-0.22

        Mutual Funds—–8,535,027 —–3.44

        Others (Public, Bodies Corporate etc.) ——60,258,049 —–24.30
        Total ——– 247,945,110 —— 100.00

    It seems to be very good company, with very high EPS.
    Why the rates are so subdued?
    Any info of rate of Buyback in todays meeting?

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