Triveni Turbines Limited Buyback Offer 2022

Triveni Turbine Limited is the market leader in India with a dominant 63% market share. It also offers comprehensive aftermarket services covering the entire lifecycle of turbines. TTL operates in the higher capacity range of above 30 MW to 100 MW turbines through its subsidiary, GE Triveni Ltd., a joint venture company with General Electric.

(i) Products & Services Triveni Turbine Limited offers robust back-pressure and condensing steam turbines that work across a wide range of pressure and flow applications. For TTL, customer relations means much more than just completing the contractual commitment of supplying and commissioning the turbine. TTL stands by its customers to make their operations reliable and provides 360-degree after-sales services support during the complete life cycle for all types of industrial steam turbines. With a dedicated team of highly skilled and experienced engineers, TTL offers a wide suite of integrated solutions like erection & commissioning, spare parts, operations & maintenance, and refurbishing, among others.

(ii) Customer Segments Triveni Turbine Limited finds applications in a wide range of industries such as Sugar, Steel, Pulp & Paper, Textiles, chemicals, Palm Oil, Food Processing, etc. The turbines are used in multiple applications like Co-generation, Combined Heat & Power Generation, Waste to Energy, Captive Power Generation, and Independent Power Generation.

(iii) Geographical Presence With over 2500 turbine installations in over 50 countries globally, the Company is fast spreading its global footprint to more countries and geographies.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 190 Cr
Date of Board Meeting approving the proposal: Nov 02 2022
Date of Public Announcement: Nov 02 2022
Buyback Offer Size: 1.68%
Buyback Number of Shares: 54,28,571
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 350 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 54,28,571 (Fifty Four Lakh Twenty Eight Thousand Five Hundred and Seventy One) equity shares of face value of Rs. 1 of the Company (representing 1.68% 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 190 Cr (Rupees One Hundred and Ninety Crore Only).

Salient financial parameters:

Particular (in crores) Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
Sales 745 751 840 818 703 852 1,014
Expenses 577 594 687 660 553 692 822
Operating Profit 168 157 153 158 149 161 191
OPM % 23% 21% 18% 19% 21% 19% 19%
Other Income 33 8 19 24 6 227 34
Interest 2 2 3 5 3 3 1
Depreciation 15 19 20 20 20 20 20
Profit before tax 185 144 149 156 132 365 204
Tax % 33% 33% 33% 22% 22% 26%
Net Profit 124 96 100 122 102 270 153
EPS in Rs 3.74 2.91 3.1 3.77 3.17 8.36 4.73
Dividend Payout % 32% 34% 0% 13% 38% 31%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Triveni Turbine Limited Buyback Offer 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 CPM of Rs 283 (2,00,000/350)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 1,61,593 1,61,593 1,61,593 1,61,593
(ii) No. of Shares buyback 188 285 428 571
(iii) Buy Back Profit 12,596 19,095 28,676 38,257
(iv) Profit(%) 7.79% 11.8% 17.7% 23.67%

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