Sharda Motor Industries Ltd Buyback
Sharda Motor Industries Buyback 2024
Tender Offer
₹1,800.00
Buyback price per shareAbout Sharda Motor Industries Ltd Buyback
Sharda Motor Industries Limited (SMIL) is based in New Delhi, India. It specializes in the production, assembly, and distribution of automotive and white goods components to OEMs. SMIL is an ISO 9001-certified company with a wide range of products, including sheet metal component, exhaust systems, seat frames, fuel tanks, and other automotive components.
SMIL established an R&D centre in 2010 at Mahindra World City, 45 km from Chennai airport, to design, test, and validate exhaust systems for passenger vehicles, commercial vehicles, and non-automotive applications. In 2004, SMIL established a unit to supply Air Conditioner Cabinet assembly for Samsung India.
Sharda Motor is a manufacturer of a wide range of products that includes Exhaust Systems, Catalytic Converters, Independent Suspension, Seat Frames, Seat Covers (for Two-Wheelers and four-wheelers), Soft-Top Canopies, and Pressed parts for white goods. The company takes pride in meeting the needs of its customers promptly and accurately while maintaining the highest quality standards. They offer all their employees equal opportunities for development, advancement, and growth. Sharda Motor has modern manufacturing facilities with a continuous focus on innovation, technology upgradation, research, and development to provide the best products and services to their customers.
Sharda Motor Industries Ltd Buyback Details
Security Name
Sharda Motor Industries LtdBuyback Price
₹1,800.00Face Value
₹2.00Listing at Group
BSE,NSELead Manager
Ambit Private LimitedBuyback Docs
Letter Of OfferIssue Size
1,027,777 (3.46% of Total number of equity Shares)Sharda Motor Industries Buyback 2024 Issue Timetable
| Last Date to buy shares | Record Date | Offer Opens On | Offer Closes On * |
| Jun 4, 2024 | Jun 5, 2024 | Jun 11, 2024 | Jun 18, 2024 |
| Last Date for receipt of Tender Forms | Finalisation of Buyback Acceptance | Last Date for settlement of bids | Last Date for Extinguishment of Shares |
| Jun 18, 2024 | Jun 24, 2024 | Jun 25, 2024 | Jul 4, 2024 |
Sharda Motor Industries Ltd Buyback Ratio
| Category | Entitlement Ratio of Buyback | Shares Offered |
| Reserved Category for Small Shareholders | 5/24 | 154167 |
| General Category for all other Eligible Shareholders | 1/33 | 873610 |
Company Financials All values are in ₹ Cr.
| Period Ended | 31-Dec-23 | 31-Mar-22 | 31-Mar-21 |
|---|---|---|---|
| Reserves And Surplus | 541.65 | 356.69 | -- |
| Total Borrowing | -- | -- | -- |
| Profit After Tax | 205.43 | 161.49 | 78.59 |
| Total Assets | 1,388.93 | 1,065.73 | 972.73 |
| Total Revenue | 2,741.67 | 2,284.85 | 1,757.99 |
| Net Worth | 781.82 | 599.77 | 445.45 |
How to Participate in Sharda Motor Industries Ltd Buyback?
1. Firstly, to be eligible for the buyback the investor should have shares of Sharda Motor Industries Ltd Buyback in Demat or physical form as on the record date Jun 5, 2024.
2. Once you have shares in Demat, you can participate in the buyback process which is opening from Jun 11, 2024 by tendering your shares through your broker on BSE,NSE.
3. Then on Jul 4, 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 Sharda Motor Industries Ltd Buyback
|
Maximum market value of a share holder as on record date |
₹200,000.00 |
|
Buyback price per share |
₹1,800.00 |
|
Maximum share for small shareholders (200000/ 1800) |
111.11 share |
|
Closing price of stock as of 2024-04-18 |
₹1,588.05 |
|
Maximum amount insted in buyback (₹1,588.05 x 111.11111111111111 shares) |
₹176,450.00 |
* No. of shares stands to change according to the closing price on the record date
* For simplicity, we have considered the price on date Apr 18, 2024
Expected Profit from the Sharda Motor Industries Ltd Buyback on the bases of acceptance Ratio:
|
Acceptance Ratio |
33% |
50% |
75% |
100% |
|
Amount Invested in Buyback |
₹176,450.00 |
₹176,450.00 |
₹176,450.00 |
₹176,450.00 |
|
No. of Shares Buyback |
36 |
55 |
83 |
111 |
|
Buyback Profit |
7630 |
11657 |
17591 |
23526 |
|
Profit% |
4.32% |
6.61% |
9.97% |
13.33% |
Sharda Motor Industries Ltd Buyback - Necessity of the Objective
The Buy-Back will help the Company to return surplus cash to its shareholders holding ordinary shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
The buyback which is being implemented through the tender route as prescribed by the Buyback regulations, involves allocation of the number of equity shares as per their entitlement as 15% of the number of equity shares to be bought back whichever is higher, reserved for small shareholders. The Company believes that the reservation for small shareholders would benefit a large number of public shareholders, who would get classified as small shareholders as per Regulation 2(i)(n) of the Buy-Back Regulations
The Buy-Back would help in improving return on equity by reducing the share capital base and increasing shareholder's value in the longer term
The Buy-Back gives an option to the shareholders holding ordinary shares of the Company, who can choose to participate and get cash in lieu of ordinary shares to be accepted under the Buy-Back offer or they may choose not to participate and benefit from a resultant increase in their percentage shareholding, post the Buy-Back offer, without additional investment
Sharda Motor Industries Ltd Buyback
D-188, Okhla Industrial Area, Phase-INew Delhi-110020Email: smil@shardamotor.com
Phone: +011 4733 4100
Website: https://www.shardamotor.com/
Link Intime India Private Ltd
Email: shardamotor.buyback2024@linkintime.co.in
Phone: +91-22-4918 6270
Website: https://linkintime.co.in/initial_offer/public-issues.html
