Suprajit Engineering Buyback 2021: Suprajit Engineering Limited released the draft letter of offer for buyback of shares. The Board of Suprajit Engineering at its meeting held on February 10, 2021, had approved the proposal to buy-back up to 15 lakh equity share of Re 1 each of the company for an aggregate amount not exceeding Rs48cr being 1.07% of the total paid-up equity share capital, at Rs320 per equity share (buyback price).
Born of Entrepreneurial spirit in 1985, Suprajit today has carved a niche for itself as a pioneer in the design and manufacture of Mechanical Control Cables and is recognized as India’s largest cable maker and worlds largest in the two-wheeler cable market. As a part of its Strategic expansion into Non-Automotive-Cables and Controls market Suprajit acquired Wescon Controls Inc USA in 2015 and had also diversified into Automotive Lighting business through acquisition of Phoenix Lamps Limited in 2014.
Head Quartered in Bangalore- India Suprajit has transitioned from a single product, single customer, single segment, single brand, single location company to a multi-product, multi-business, multi-customer, multi-brand, multi-location global company making it truly diversified without sacrificing its tenets on Quality, Cost, Delivery and Development. It is driven by its single-minded goal of “Customer Satisfaction” and in this pursuit of excellence it continues be recognised as “Value for Money Supplier” to customers across the spectrum.
With a compounded annual growth of over 25+%, the group has one of the largest manufacturing capacities in world with 300+ million cables per year and 80+ million bulbs per year.
Suprajit Engineering Buyback 2021 Offer Deal
| Symbol | SUPRAJIT |
| BuyBack Period | Not Announced |
| Offer Amount | ₹ 48 Crores |
| Offer Type | Tender |
| Offer Price | ₹ 320 Per Equity Share |
| BuyBack Record Date | Feb 22, 2021 |
| Date of Public Announcement | Feb 10, 2021 |
| Buyback Number of Shares | 15,00,000 |
| Face Value | ₹ 01 |
| Book Running Lead Manager | Capital Square Advisors Pvt. Ltd. |
| Registrar | Integrated Enterprises (India) Ltd. |
| Contact person name number and Email id | Mr. J. Gopinath corpserv@integratedindia.in |
Profit & Loss Consolidated Figures Of Suprajit Engineering
| Particular | Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM |
| Sales + | 206 | 248 | 345.00 | 421.00 | 458.00 | 540 | 605 | 940 | 1203 | 1431 | 1590 | 1563 | 1517 |
| Expenses + | 176 | 202 | 288.00 | 352.00 | 380.00 | 447 | 508 | 790 | 1005 | 1194 | 1357 | 1344 | 1307 |
| Operating Profit | 29 | 46 | 57.00 | 69.00 | 78.00 | 93 | 97 | 150 | 198 | 237 | 233 | 219 | 210 |
| OPM % | 14.00% | 18.00% | 0.16 | 0.16 | 0.17 | 17.00% | 16.00% | 16.00% | 16.00% | 17.00% | 15.00% | 14.00% | 14.00% |
| Other Income | 1 | 0 | 5.00 | 3.00 | 8.00 | 4 | 4 | 16 | 24 | 21 | 38 | -5 | -2 |
| Interest | 7 | 6 | 7.00 | 10.00 | 11.00 | 14 | 17 | 26 | 30 | 27 | 25 | 23 | 22 |
| Depreciation | 7 | 7 | 7.00 | 7.00 | 8.00 | 8 | 9 | 16 | 27 | 37 | 41 | 58 | 57 |
| Profit before tax | 17 | 33 | 47.00 | 55.00 | 67.00 | 74 | 75 | 123 | 164 | 193 | 205 | 133 | 129 |
| Tax % | 45.00% | 33.00% | 0.29 | 0.27 | 0.29 | 32.00% | 33.00% | 35.00% | 31.00% | 28.00% | 35.00% | 22.00% | |
| Net Profit | 9 | 22 | 33.00 | 40.00 | 47.00 | 51 | 50 | 72 | 114 | 138 | 134 | 104 | 88 |
| EPS in Rs | 1.85 | 2.73 | 3.32 | 3.93 | 4.23 | 4.19 | 5.48 | 8.66 | 9.9 | 9.57 | 7.43 | 6.3 | |
| Dividend Payout % | 30.00% | 35.00% | 0.16 | 0.20 | 0.19 | 22.00% | 23.00% | 19.00% | 17.00% | 14.00% | 16.00% | 24.00% |
Profit from the buyback on the bases of acceptance Ratio:
Buy 625 Shares (2,00,000/320 = 625) at CMP of Rs. 244 approx (Closing Price on 10 Feb, 2021) [Expected Acceptance Ratio: 30-35%]
| Acceptance Ratio | 33.00% | 50.00% | 75.00% | 100.00% |
| Amount Invested in Buyback | 152500 | 152500 | 152500 | 152500 |
| No. of Shares buyback | 206 | 312.5 | 469 | 625 |
| BuyBack Profit | 15675 | 23750 | 35625 | 47500 |
| Profit(%) | 10.28% | 15.57% | 23.36% | 31.15% |
How to Participate in buyback?
- Firstly, to be eligible for the buyback the investor should have shares of Suprajit Engineering Buyback 2021 in Demat or physical form as on record date [22.02.2021]
- Once you have shares in Demat, you can participate in the buyback process which is opening from [Not Announced], by selling your shares through your broker on NSE or BSE.
- Then on [Not Announced] the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.
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