VRL Logistics Buyback 2021

VRL was founded in 1976 by DR. Vijay Sankeshwar in Gadag, a small town in North Karnataka with a single truck and a vision that was way ahead of its time. VRL gradually expanded its services to Bangalore, Hubli and Belgaum. From this humble beginning VRL has today grown into a nationally renowned logistics and transport company which is also currently the largest fleet owner of commercial vehicles in India with a fleet of 4835 Vehicles (Including 362 Passenger Transport Vehicles & 4473 Goods Transport Vehicles amongst others). VRL finds mention in the Limca Book of Record as the largest fleet owner of commercial vehicles in india in the Private Sector. Mr. Vijay Sankeshwar has now been joined by his son Mr. Anand Sankeshwar who brings in newer strategies to further drive the growth of the Company.

3PL & Warehousing solutions offered by VRL are tailor-made and cater to unique needs of its diverse customer base. With the largest goods transportation network in India, VRL parcel service is indispensable for a large number of Corporate Houses. This network spans the length and breadth of the country and is supported by strategically located transshipment hubs. We operate through a network of 929 Branch and franchisees to cater our valuable customers and we are now in the process of expanding our services to reach even the remotest locations of the Country.

Buy Back Offer Deal:

Buyback Type: Open Offer
Buyback Offer Amount: ₹ 60 Crores
Date of Board Meeting approving the proposal: Feb 06 2021
Date of Public Announcement: Feb 06 2021
Buyback Offer Size: 9.73%
Price Type: Open Offer
FV: 10
Buyback Price: ₹ 300 Per Equity Share

Details of Buyback:

The Buy-back of the Company's fully paid up equity shares having a face value of Rs. 10 (Rupee Ten Only) each (the "Equity Shares"), from the members of the Company at a price not exceeding Rs. 300 per Equity Share ("Maximum Buyback Price"), and for an aggregate amount not exceeding Rs. 60 crores ("Maximum Buyback Size"), which is less than 10% of the paid-up capital and free reserves of the Company as on March 31, 2020, from the open market through Stock Exchange mechanism. incidental thereto.

Salient financial parameters:

Particulars (Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 1,673 1,723 1,803 1,922 2,110 2,119
Expenses 1,397 1,451 1,584 1,688 1,865 1,815
Operating Profit 276 272 220 235 245 303
OPM % 16% 16% 12% 12% 12% 14%
Other Income 10 8 9 14 8 6
Interest 60 32 25 12 11 37
Depreciation 88 90 98 98 101 168
Profit before tax 138 158 105 139 140 104
Tax % 34% 34% 33% 34% 35% 14%
Net Profit 91 104 70 93 92 90
EPS in Rs 10.66 11.42 7.72 10.25 10.17 9.97
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How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “VRL Logistics Buyback 2021” announces the buyback plan of its shares up to the price of Rs 300, it means that the company will be purchasing shares of "VRL Logistics" from the open market at a price not exceeding Rs.300 per share. Scenario 1- If the share price is below Rs.300 in that case, the company will put buy orders at the current market price and purchase shares. Scenario 2- If the share price is above Rs. 300, in that case, the company will put buy order at Rs. 300 only and if someone is ready to sell at Rs.300 then the only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA

Recommendation:

NA as it is open market buyback.

6 Comments

    BUYBACK BOLTE HAI 300 BOL KE AUR MARKET RATE PE BUY KARTE HAI ISKA KYA MATLAB HUWA 3 DIN PAHALE 46000 SHARES LIYA GAYA HAI MARKET RATE PE

    Reply

    VRL : BUY BACK @300 /- per share
    Company at its meeting held February 6, 2021 has approved a proposal to buyback of
    the fully paid-up Equity shares of face value of {10/-each by the Company from the
    shareholders/beneficial owners of the Company(other than those who are promoters,
    promoter group or persons in control), for an aggregate amount not exceeding t 60
    Crores (Indiar Rupees Sixty Clores Only) (“Maximum Buyback Sizc ), and at a p ce
    not exceeding 1300/- (lndian Rupees Three Hundred Only) per Equity
    Share(“Maximum Buyback Price,,) payable in cash from open market through the stock
    exchanges mecharism i.e.,using the elechonic trading facilities of the stock exchanges
    where the equity shares of the Company are listed.
    Quarterly result has also been good compared to last quarter.

    Can someone explain what is open offer from market to buy back.

    Reply

      In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market.

      Example: “VRL Logistics Buyback 2021” announces the buyback plan of its shares up to the price of Rs 300, it means that the company will be purchasing shares of “VRL Logistics” from the open market at a price not exceeding Rs.300 per share.

      Scenario 1- If the share price is below Rs.300 in that case, the company will put buy orders at the current market price and purchase shares.

      Scenario 2- If the share price is above Rs. 300, in that case, the company will put buy order at Rs. 300 only and if someone is ready to sell at Rs.300 then the only company will get back shares.

      Reply

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