Triveni Engineering & Industries Limited Buyback 2022

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 Offer
Buyback Offer Amount: ₹ 800 Cr
Date of Board Meeting approving the proposal: Nov 05 2022
Date of Public Announcement: Nov 05 2022
Buyback Offer Size: 9.45%
Buyback Number of Shares: 2,28,57,142
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 350 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 2,28,57,142 (Two Crore Twenty-Eight Lakhs Fifty-Seven Thousand One Hundred Forty Two) equity shares of face value of Rs. 1 of the Company (representing 9.45% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 350 (Rupees Three Hundred Fifty Only) per equity share payable in cash for an aggregate consideration not exceeding 800 Cr (Rupees  Eight Hundred Crore Only).

Salient financial parameters:

Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales + 2,824 3,370 3,152 4,437 4,674
Expenses + 2,302 3,094 2,842 3,893 4,112
Operating Profit 522 276 309 543 562
OPM % 18% 8% 10% 12% 12%
Other Income + -36 33 83 56 28
Interest 127 85 68 79 52
Depreciation 57 55 57 75 79
Profit before tax 302 169 268 446 460
Tax % 16% 29% 19% 25% 36%
Net Profit 253 119 216 335 295
EPS in Rs 9.81 4.62 8.38 13.52 12.19
Dividend Payout % 0% 5% 8% 8% 14%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Triveni Engineering & Industries Limited Buyback 2022 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 571 Shares at CMP of Rs. 278 [2,00,000/350)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,58,738 1,58,738 1,58,738 1,58,738
No. of Shares buyback 188 286 428 571
BuyBack Profit 13,536 20,592 30,816 41,112
Profit 8.52% 12.9% 19.41% 25.8%

22 Comments

    Particulars of the buyback of the shares of Softsol India :

    Buyback Price: Rs.170/-
    CMP: Rs.150/-
    Buyback Size: 20,58,824 shares representing 12.24%, of the total Equity Shares in the existing total paid-up equity share capital.
    Buyback Mode: Tender Offer Route
    Record Date: To be announced
    All the best to all of you. Thank you.

    Particulars of the buyback of the shares of eClerx Services Ltd :
    Buyback Price: Rs.1900/-
    Buyback Size: 15,78,947 shares
    Buyback Mode: Tender Offer Route
    Record Date: To be announced
    All the best to all of you. Thank you.

        Sumit ji,
        In the previous buyback of 11/2021, AR was around 38%. I am benefited to the tune of Rs. 25000/-on the whole on my purchase of 51 shares. I am positive on the current Buyback also. Thank you. Please keep posting your valuable views on all the Buybacks.

    Particulars of the buyback of the shares of Orbit Exports Ltd :

    Buyback Price: Rs.245/-
    Buyback Size: 4,00,000 shares
    Buyback Mode: Tender Offer Route
    Record Date: To be announced
    All the best to all of you. Thank you.

      Record Date is 18/11/2022 in respect of Orbit Exports Ltd. Sorry for the inconvenience caused due to non furnishing of the Record Date.

        Request to Kindly add the %age of total equity to be bought back.
        Thanks SRK ji

          Sumit ji,
          Around 1.5% of the total paid up shares are being allocated for the buyback. Thank you.

    Particulars of the buyback of the shares of Jagran Prakashan Ltd :
    Buyback Price: Rs.75/-
    Buyback Size: 46,000,000 shares
    Buyback Mode: Tender Offer Route
    Record Date: To be announced
    All the best to all of you. Thank you.
    REPLY

      Sumit ji,
      Keeping in view, the size of the buyback and the small margin between the CMP and the Buyback Price, I am hopefully looking forward for the AR of not less than 70%. What is your opinion,Sir?

        SRK Sir,
        Thanks for your comments. I also assume the AR to be of the tune of 70% and as a dark horse may be 100%..
        I found more the fuzz, less ins the AR. Currently Jagran fuzz is too low… Hopefully >70%
        Thanks

    Particulars of the buyback of the shares of Tips Industries :

    Buyback Price: Rs.2600/-
    Buyback Size: 1,26,000 shares
    Buyback Mode: Tender Offer Route
    Record Date: To be announced
    All the best to all of you. Thank you.

    Buyback of the shares of Balrampur Chini is through the Open Market. No use.

    Large no of buyback in pipe line:
    Eclerx
    Softsol
    Jagran
    Tips Industries

    9.45% and 800Cr is a great amount for buyback. ER can be 12-13% and I expect AR to be >>40%. But considering recent surge appears to be risky.

      Right sir ,
      For retail current ER 13%. ( As 11% share holding pattern of retails )
      if big players absorve from retailers thn ER will be 22-25%

    Jagran Publicatin Buyback announced.

    Excellent opportunity of 12% with 100% AR possible

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