Welspun India Limited Buyback Offer 2021
Welspun is a fully integrated player within the Line Pipes and Home Textiles sectors, with a significant presence in Infrastructure development, spanning Roads, Water and Oil & Gas. As a globally recognised industry leader, the group has a worldwide reach panning more than 50 countries, and employing over 26,000 people across geographies, ethnicities and cultures.
Welspun’s vast global footprint allows the group to leverage business associations with a marquee of esteemed clients, especially within the Oil & Gas and Retail sectors. In Line Pipes, we are the partners of choice for some of the most challenging projects for the largest players in the global Oil and Gas industry.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | May 26 2021 |
| Buyback Opening Date: | Jun 22 2021 |
| Buyback Closing Date: | Jul 05 2021 |
| Buyback Offer Amount: | ₹ 200 Crores |
| Date of Board Meeting approving the proposal: | May 14 2021 |
| Date of Public Announcement: | May 14 2021 |
| Buyback Offer Size: | 6.36% |
| Buyback Number of Shares: | 1,66,66,667 |
| Price Type: | Tender Offer |
| FV: | 1 |
| Buyback Price: | ₹ 120 Per Equity Share |
Details of Buyback:
The Board of Directors of the Company at their meeting held on May 14, 2021, have approved buyback proposal for purchase of fully paid equity shares of Re. 1 each (“Equity Share”) by the Company at a price of Rs. 120/- (Rupees One Hundred and Twenty Only) per Equity Share payable in cash (“Buyback Price”), for an aggregate amount of Rs. 200 Crore (Rupees Two Hundred Crore Only) (“Buyback Size”) (excluding expenses incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, advisor’s fees, public announcement publication expenses, printing, dispatch expenses, transaction costs viz. brokerage, applicable taxes such as buyback taxes, securities transaction tax, goods and service tax, stamp duty, etc.), representing 6.36% of the total paid-up equity share capital and free reserves via "Tender Route"
Salient financial parameters:
| Particulars (in Crores) | Mar-15 | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 | Mar-21 |
| Sales | 5,264 | 5,924 | 6,638 | 6,050 | 6,527 | 6,741 | 7,340 |
| Expenses | 3,987 | 4,328 | 5,071 | 4,927 | 5,487 | 5,526 | 5,988 |
| Operating Profit | 1,278 | 1,595 | 1,566 | 1,123 | 1,039 | 1,215 | 1,352 |
| OPM % | 24% | 27% | 24% | 19% | 16% | 18% | 18% |
| Other Income | 91 | 88 | -367 | 81 | -157 | 139 | 68 |
| Interest | 283 | 237 | 158 | 141 | 159 | 178 | 198 |
| Depreciation | 333 | 372 | 505 | 504 | 436 | 481 | 454 |
| Profit before tax | 753 | 1,074 | 536 | 560 | 287 | 694 | 769 |
| Tax % | 28% | 30% | 32% | 29% | 21% | 24% | 28% |
| Net Profit | 540 | 736 | 358 | 385 | 210 | 507 | 540 |
| EPS in Rs | 5.37 | 7.33 | 3.56 | 3.83 | 2.09 | 5.05 | 5.37 |
| Dividend Payout % | 20% | 18% | 18% | 17% | 14% | 20% | 3% |
How to Participate in buyback?
1. Firstly to be eligible for the buyback the investor should have shares of Welspun India Limited Buyback Offer 2021 in demat or physical form as on record date [26.05.2021]
2. Once you have shares in demat, you can participate in the buyback process which is opening from [22.06.2021 to 05.07.2021] by selling your shares through your broker on NSE or BSE.
3. Then on [Not Announced], 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 1666 Shares at CMP of Rs. 101 (2,00,000/120=1666)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,68,266 | 1,68,266 | 1,68,266 | 1,68,266 |
| No. of Shares buyback | 550 | 833 | 1250 | 1666 |
| BuyBack Profit | 10,450 | 15,833 | 23,750 | 31,654 |
| Profit | 6.21% | 9.41% | 14.11% | 18.81% |
Recommendation:
Review and Recommendation of Welspun India Limited Buyback Offer 2021 by IZ team is: 4/10
Fair: 1-5
Good:5-7
Excellent: 7-10
[ Entitlement = 10% ]
15 Comments
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387 of 600 accepted
Sir, You are lucky. Now you can sell the shares at a better price. Congratulations.
Umesh ji,
What is the expected AR of Welspun?
Sir, 1392 shares are accepted out of the tendered shares of 1800 for buyback.
Congratulations Siva ji. You have rightly picked up biyback shares.
Thank you very much, sir
Navneet Publication, coming with Buyback??
Pl add.
Is it good to buy for buyback purpose
Yes !
But ,
Monday is the last day to buy for tender in buyback.
Your info was incorrect.
I bought on Monday, but shares reached DMAT after record date..
*Buyback Tip*
As per section 10(34A), any income arising to a shareholder (including ESOP-shares) on account of buyback of shares by the company shall be exempt in the hands of such shareholders. Further, as per section 115QA, the tax @ 20% shall be paid by the unlisted company on the buyback of its shares.
In nutshell, Profit/Gain (STCG/LTCG) arising on Buyback of Shares shall be *Tax Exempt* u/s 10(34A)
#Buyback #unk
What could be the proper price to purchase for Buy Back only [not for investment] and expected ER/AR?
Does anyone know how to show this income that arises from buyback profit in ITR2?
What will be the acceptance ratio?
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