Aia Engineering Ltd. Buyback
AIA Engineering Buyback 2024
Tender Offer
₹5,000.00
Buyback price per shareAbout Aia Engineering Ltd. Buyback
Ahmedabad Induction Alloys (AIA) Engineering Limited was established in 1978 and is engaged in the design, development, manufacture, installation and maintenance of wear-resistant high chromium material parts for grinding equipment in the cement, mining, and quarrying industries.
Together with Vega Industries, the international marketing arm of AIA Engineering, the company develops and manufactures innovative products and offers complete solutions to give customers' businesses the boost they need. The company has three main focus areas:
Mining: the company offers solutions from the grinding process to downstream process optimization and has significant manufacturing capacity for high chrome grinding media and mill liners.
Cement: Production of wear parts for cement plants. The product portfolio includes high-chromium grinding media, mill linings, and vertical mill linings. The company also offers marked ball testing, custom linings, and VRM optimization services.
Quarries: Supply of wear and impact-resistant alloys and inserts. The product range includes blow bars, hammers, impellers, anvils, feed disks, and frame linings.
Aia Engineering Ltd. Buyback Details
Security Name
Aia Engineering Ltd.Buyback Price
₹5,000.00Face Value
₹2.00Listing at Group
BSE, NSELead Manager
Vivro Financial Services Private LimitedBuyback Docs
Letter Of OfferIssue Size
1,000,000 (1.06 % of Total number of equity Shares)AIA Engineering Buyback 2024 Issue Timetable
| Last Date to buy shares | Record Date | Offer Opens On | Offer Closes On * |
| Aug 19, 2024 | Aug 20, 2024 | Aug 26, 2024 | Aug 30, 2024 |
| Last Date for receipt of Tender Forms | Finalisation of Buyback Acceptance | Last Date for settlement of bids | Last Date for Extinguishment of Shares |
| Aug 30, 2024 | Sep 5, 2024 | Sep 6, 2024 | Sep 18, 2024 |
Aia Engineering Ltd. Buyback Ratio
| Category | Entitlement Ratio of Buyback | Shares Offered |
| Reserved Category for Small Shareholders | 1/4 | |
| General Category for all other Eligible Shareholders | 1/111 |
Company Financials All values are in ₹ Cr.
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|
| Total Assets | 6,631.2 | 7,495.17 | -- |
| Total Borrowing | -- | -- | -- |
| Total Revenue | 5,135.16 | 5,143.31 | -- |
| Reserves And Surplus | -- | -- | -- |
| Net Worth | -- | -- | -- |
| Profit After Tax | 1,136.99 | 1,056.5 | -- |
How to Participate in Aia Engineering Ltd. Buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of Aia Engineering Ltd. Buyback in Demat or physical form as on the record date Aug 20, 2024.
2. Once you have shares in Demat, you can participate in the buyback process which is opening from Aug 26, 2024 by selling your shares through your broker on BSE, NSE.
3. Then on Sep 18, 2024, the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.
Calculation of Investment in Aia Engineering Ltd. Buyback
Maximum market value of a share holder as on record date | ₹200,000.00 |
Buyback price per share | ₹5,000.00 |
Maximum share for small shareholders (200000/ 5000) | 40.00 share |
Closing price of stock as of 2024-08-07 | ₹4,510.01 |
Maximum amount insted in buyback (₹4,510.01 x 40 shares) | ₹180,400.40 |
* No. of shares stands to change according to the closing price on the record date
* For simplicity, we have considered the price on date Aug 7, 2024
Expected Profit from the Aia Engineering Ltd. Buyback on the bases of acceptance Ratio:
Acceptance Ratio | 33% | 50% | 75% | 100% |
Amount Invested in Buyback | ₹180,400.40 | ₹180,400.40 | ₹180,400.40 | ₹180,400.40 |
No. of Shares Buyback | 13 | 20 | 30 | 40 |
Buyback Profit | 6369 | 9799 | 14699 | 19599 |
Profit% | 3.53% | 5.43% | 8.15% | 10.86% |
Aia Engineering Ltd. Buyback - Necessity of the Objective
The buyback will help the company to return the surplus cash to its shareholders holding equity shares.
The buyback, which is being implemented through the tender offer as prescribed under the buyback regulations, would involve a minimum reservation of 15% for small shareholders and allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would be classified as small shareholders.
The buy-back is being proposed by the company to service the equity more efficiently, additionally, the company management strives to increase equity shareholder's value.
The buyback is expected to improve return on equity through the distribution of cash and improve earnings per share by a reduction in the equity base; thereby increasing in a long-term increase in shareholder's value.
The buyback gives an option to the shareholders holding equity shares of the company, either to sell their equity shares and receive cash or not to sell their equity shares and get a resultant increase in their percentage shareholding, post the buyback offer, without additional investment.
Aia Engineering Ltd. Buyback
115, G.V.M.M. Estate, Odhav Road, Odhav, Ahmedabad - 382415.Email: ric@aiaengineering.com
Phone: +91-79-22901078
Website: http://www.aiaengineering.com/
Link Intime India Private Ltd
Email: aiaengineering.buyback2024@linkintime.co.in
Phone: +91-22-4918 6270
Website: https://linkintime.co.in/initial_offer/public-issues.html
