Chaman Lal Setia Exports Limited Buyback
Chaman Lal Setia Exports Buyback 2024
Tender Offer
₹300.00
Buyback price per shareAbout Chaman Lal Setia Exports Limited Buyback
Chaman Lal Setia Exports Ltd. is one of the largest manufacturers and exporters of basmati rice in India with its flagship brand Maharani basmati rice.
The paddy fields of Chaman Lal Setia Exports are located in Amritsar in Punjab, Karnal in Haryana and Delhi and spread over 4000 sq. km of rice-producing area. The company has a strong nationwide presence, is present in more than 83 countries and packs over 272 private labels in numerous markets around the world.
The company started exporting in 1982 and was recognized as an export house by the Ministry of Commerce, Government of India in 1989.
Chaman Lal Setia Exports Limited Buyback Details
Security Name
Chaman Lal Setia Exports LimitedBuyback Price
₹300.00Face Value
₹2.00Listing at Group
BSE, NSELead Manager
Corporate Professionals Capital Private LtdBuyback Docs
Letter Of OfferIssue Size
2,007,930 (9.5 % of Total number of equity Shares)Chaman Lal Setia Exports Buyback 2024 Issue Timetable
| Last Date to buy shares | Record Date | Offer Opens On | Offer Closes On * |
| Aug 16, 2024 | Aug 19, 2024 | Aug 23, 2024 | Aug 29, 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 29, 2024 | Sep 14, 2024 | Sep 5, 2024 | Sep 17, 2024 |
Chaman Lal Setia Exports Limited Buyback Ratio
| Category | Entitlement Ratio of Buyback | Shares Offered |
| Reserved Category for Small Shareholders | 21/251 | 301190 |
| General Category for all other Eligible Shareholders | 24/677 | 1706740 |
Company Financials All values are in ₹ Cr.
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|
| Net Worth | -- | -- | -- |
| Total Borrowing | -- | -- | -- |
| Reserves And Surplus | -- | -- | -- |
| Profit After Tax | -- | -- | -- |
| Total Revenue | -- | -- | -- |
| Total Assets | -- | -- | -- |
How to Participate in Chaman Lal Setia Exports Limited Buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of Chaman Lal Setia Exports Limited Buyback in Demat or physical form as on the record date Aug 19, 2024.
2. Once you have shares in Demat, you can participate in the buyback process which is opening from Aug 23, 2024 by selling your shares through your broker on BSE, NSE.
3. Then on Sep 17, 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 Chaman Lal Setia Exports Limited Buyback
Maximum market value of a share holder as on record date | ₹200,000.00 |
Buyback price per share | ₹300.00 |
Maximum share for small shareholders (200000/ 300) | 666.67 share |
Closing price of stock as of 2024-08-06 | ₹222.90 |
Maximum amount insted in buyback (₹222.90 x 666.6666666666666 shares) | ₹148,600.00 |
* 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 6, 2024
Expected Profit from the Chaman Lal Setia Exports Limited Buyback on the bases of acceptance Ratio:
Acceptance Ratio | 33% | 50% | 75% | 100% |
Amount Invested in Buyback | ₹148,600.00 | ₹148,600.00 | ₹148,600.00 | ₹148,600.00 |
No. of Shares Buyback | 220 | 333 | 500 | 666 |
Buyback Profit | 16962 | 25674 | 38550 | 51348 |
Profit% | 11.41% | 17.28% | 25.94% | 34.55% |
Chaman Lal Setia Exports Limited Buyback - Necessity of the Objective
The buyback will help the company to distribute surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
The buyback is expected to improve return on equity through the distribution of cash and improve earnings per share by reducing the equity base; thereby increasing the long-term 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.
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 many public shareholders, who would be classified as small shareholders.
The buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the company.
Chaman Lal Setia Exports Limited Buyback
No. 472, Udyog Vihar, Phase -3, Near Wipro & Educom Building, Gurugram - 122016Email: maharani@setiarice.com
Phone: +91-124-4745900
Website: http://www.maharanirice.in/
Beetal Financial & Computer Services (P) Limited
Email: beetal@beetalfinancial.com
Phone: +91 11 29961281
Website: http://www.beetalmail.com/smeipo
