Welspun Enterprises Buyback 2022
Welspun Enterprises Limited (WEL), part of the Welspun Group, is an operating Company as well as a holding company. The year of 2014-15 was a year of consolidation for the company. During the year, the company divested its DRI business; Welspun Maxsteel Ltd. The company had identified this business as non-core and therefore exited the same. As part of further consolidation, pursuant to Scheme of Arrangement and Amalgamation made effective from May 11, 2015, the erstwhile Welspun Enterprises Limited, Welspun Infratech Limited, Welspun Plastics Private Limited and Welspun Infra Projects Private Limited were merged into the Company. This consolidation will enable the Company to better leverage the combined strengths of the entities, synergies arising out of consolidation of business such as, enhancement of net worth of the combined business to capitalise on future growth potential, optimal utilisation of resources, reducing operating and compliance cost and achieving operational and management efficiency. It will aid the Company to target opportunities which need large free cash and strong balance sheet. The merger has helped to consolidate and simplify corporate structure of WEL and its subsidiaries
The Company’s key activity is in the infrastructure business. Apart from that, the company holds equity investments in Welspun Natural Resources Private Limited (Oil & Gas Exploration).In infrastructure, WEL has developed and operates PPP projects in various sectors like roads, water, and urban infrastructure. In the highway sector alone, the Company has successfully completed six BOT (Toll) Road projects with a total length of over 500 km. By March 31st 2018, the Company has substantially completed India’s first HAM project -Delhi-Meerut Expressway Package 1 (Delhi Section), demonstrating operational excellence by remaining well ahead of the scheduled construction.
Buy Back Offer Deal:
Buyback Type: | Tender Offer |
Buyback Record Date: | Feb 13 2023 |
Buyback Offer Amount: | ₹ 235 Cr |
Date of Board Meeting approving the proposal: | Dec 30 2022 |
Date of Public Announcement: | Dec 30 2022 |
Buyback Offer Size: | 7.8% |
Buyback Number of Shares: | 1,17,50,000 |
Price Type: | Tender Offer |
FV: | 10 |
Buyback Price: | ₹ 200 Per Equity Share |
Details of Buyback:
Salient financial parameters:
Particulars (in Cr) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
Sales + | 1,067 | 1,787 | 1,808 | 1,530 | 1,401 |
Expenses + | 990 | 1,608 | 1,617 | 1,365 | 1,252 |
Operating Profit | 77 | 179 | 191 | 164 | 149 |
OPM % | 7% | 10% | 11% | 11% | 11% |
Other Income + | 95 | 93 | 112 | 142 | 174 |
Interest | 33 | 54 | 77 | 110 | 140 |
Depreciation | 24 | 11 | 23 | 16 | 16 |
Profit before tax | 116 | 207 | 203 | 180 | 167 |
Tax % | 40% | 39% | 25% | 28% | 25% |
Net Profit | 69 | 127 | 151 | 130 | 126 |
EPS in Rs | 4.71 | 8.56 | 10.03 | 8.66 | 8.33 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
Acceptance Ratio | 33% | 50% | 75% | 100% |
Amount Invested in Buyback | 1,66,000 | 1,66,000 | 1,66,000 | 1,66,000 |
No. of Shares buyback | 330 | 500 | 750 | 1000 |
Buy Back Profit | 11,220 | 17,000 | 25,500 | 34,000 |
Profit(%) | 6.75% | 10.24% | 15.36% | 20.48% |
17 Comments
Leave a Reply
You must be logged in to post a comment.
Hello .. I’m investing first time in buyback amount 50000 .. can anyone tell me acceptance ratio
Acceptance ratio cant tell now
It decided after total bids in buyback. Which takes more time from Record Date. Like 45-55 days.
But as per December share holding pattern we can expect 12-14% Entitlement ratio
And
25% acceptance ratio.
25% is less… can I expect 50- 60% AR ….
Or should I hold money for better buyback… like Hinduja and sportking …
But I think welspun is better then these. …can you guide
Today appears to be a chance day for accumulating this share for buyback.. Still high risk, seeing market free fall
Started buying at 200@140.45
Total 1400 bought average 139.4
Sumit ji,
Very good price. I am sure that you will get a good profit. All the best.
Record Date is 13/02/2023.
Dhanuka 55% accepted in Buyback
What are your views on WELSPUN Enterprises??
Welspun had run well and make sense to buy at 135-140, specifically after release of dividend. Expecting a further fall…
Orbit export AR 24PLUS .DECLARED TODAY
Total Shares = 14,97,55,073
Shares to be Bought in buyback = 1,17,50,000
The offer size appears to be 7.8% and not 14.22%,
Please check and correct, if not?
82,57,561 shares held by Investors holding upto 1000 shares (as of Shareholding Pattern as on March 31, 2022).
15% of total buyback shares = 17,62,500.
With this, the entitle ratio could be around 20%.
Please note there is also dividend of Rs7.50 on record date of 11/01/2023.
This may open gap up on Monday 02/01. We have time until the second Monday 09/01 to buy with the special dividend.
* Entitlement ratio for Retail (Small) shareholders.
Thanks for so quick update of EER
13811811 shares already with retail holding upto 2 lakh in September.