HomeBuybackVRL logistics Buyback 2023

VRL logistics Buyback 2023

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:	Tender Offer
Buyback Record Date:	Feb 10 2023
Buyback Opening Date:	Mar 13 2023
Buyback Closing Date:	Mar 27 2023
Buyback Offer Amount:	₹ 61.25 Cr
Date of Board Meeting approving the proposal:	Jan 30 2023
Date of Public Announcement:	Jan 30 2023
Buyback Offer Size:	1%
Buyback Number of Shares:	8,75,000
Price Type:	Tender offer
FV:	10
Buyback Price:	₹ 700 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 8,75,000 (Eight Lakh Seventy-Five Thousand) equity shares of face value of Rs. 10 of the Company (representing 0.99% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 700 (Rupees Seven Hundred Only) per equity share payable in cash for an aggregate consideration not exceeding 61,25,00,000 Cr (Rupees Sixty-One Crore Twenty-Five Lakh Only).

Salient financial parameters:

Particulars (In Cr)	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Sales +	1,922	2,110	2,119	1,763	2,394
Expenses +	1,688	1,865	1,815	1,515	1,988
Operating Profit	235	245	303	248	406
OPM %	12%	12%	14%	14%	17%
Other Income +	14	8	6	13	17
Interest	12	11	37	37	45
Depreciation	98	101	168	160	168
Profit before tax	139	140	104	64	210
Tax %	34%	35%	14%	29%	24%
Net Profit	93	92	90	45	160
EPS in Rs	10.25	10.17	9.97	5.1	18.12
Dividend Payout %	0%	54%	70%	78%	44%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of VRL logistics Buyback 2023 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 [13.03.2023 to 27.03.2023] by selling your shares through your broker on NSE or BSE.

3. Then on [10.04.2023], 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 285 Shares at CPM of Rs526 (2,00,000/700)

Acceptance Ratio	33%	50%	75%	100%
(i) Amount Invested in Buyback	1,50,285	1,50,285	1,50,285	1,50,285
(ii) No. of Shares buyback	94	142	213	285
(iii) Buy Back Profit	16544	24708	37062	49590
(iv) Profit(%)	11%	16.44%	24.66%	33%