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 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
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 Abirami Financial Services (India) Ltd 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 [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 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%

1 Comment

    Only 0.99% buyback, very small size, expect buyback only to promote price and fails in that only. May be of some benefit to promoter only.

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