Tender Offer | ₹42.16 Crores | Listed at BSE, NSE | Tue, Sep 21, 2021 - Mon, Oct 4, 2021
Gandhi Special Tubes Ltd. Buyback is a tender offer for the repurchase of up to 0.08 crore equity shares at a buyback price of ₹550 per share with a face value of ₹5 per share, aggregating to ₹42.16 crores.
The record date for determining eligible shareholders is Aug 31, 2021. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Sep 21, 2021 and closes on Oct 4, 2021, with the last date for receipt of tender forms being Oct 6, 2021.
The finalisation of buyback acceptance is expected on Oct 12, 2021, followed by settlement of bids on Oct 13, 2021.
Prime Securities Ltd. is the Manager to the Buyback and Kfin Technologies Ltd. is the Registrar and Dalal and Broacha Stock Broking Private Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the Gandhi Special Tubes Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Tue, Sep 21, 2021
Offer Closing Date
Mon, Oct 4, 2021
Buyback Price
₹550 per share
Record Date
August 31, 2021
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 1 Equity Shares out of every 8 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 12 Equity Shares out of every 221 fully paid-up Equity Shares held on the Record Date. |
| Particulars | For the year/period ended (Rs.in Lakhs) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Income | 11,965.50 | 8,664.96 | 13,061.55 |
| Profit After Tax | 3,615.23 | 2,137.28 | 3,863.13 |
| Net Worth | 16,890.22 | 14,352.80 | 19,845.45 |
| Reserves and Surplus | 16,244.29 | 13,706.87 | 19,154.52 |
Established in 1985, Gandhi Tubes is a leading manufacturer of tubes for manufacturing of automobile components . The company products can be mainly categorized into: Cold Drawn Bright Annealed Seamless Tubes, Precision Electric Resistance Welded Tubes, Cold Formed Coupling Nuts, High Pressure Diesel Fuel Injection Tubes. Company's products are marketed all over India and exported all over the world.
The company has 3 manufacturing plants located at Halol (near Vadodara) in Gujarat, with an approximate area of 20 acres and a construction shed of approximately 2.5 lakh sq.ft.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Aug-2021 | 557.85 | 432.90 | 483.73 |
| Jul-2021 | 500.00 | 422.30 | 455.30 |
| Jun-2021 | 442.05 | 310.10 | 374.00 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Aug-2021 | 558.85 | 432.65 | 483.88 |
| Jul-2021 | 492.45 | 423.00 | 455.38 |
| Jun-2021 | 441.70 | 310.05 | 374.02 |
The Buyback aims to :
i) Return surplus cash to the shareholders, thereby, optimizing returns to the shareholders and enhancing the overall shareholders’ value.
ii) Improve Return on Equity, Earnings per share, enhance return on invested capital, and thereby enhance shareholder value in the long term.
Gandhi Special Tubes Ltd.
201-204, 2nd Floor,
Plaza, 55, Hughes Road, Next to Dharam Palace,
Mumbai 400007, Maharashtra,
Mumbai, Maharashtra, 400007
Lead Manager(s)
Registered Broker
The Gandhi Special Tubes Limited Buyback opens on September 21, 2021, and closes on October 4, 2021.
The Gandhi Special Tubes Limited Buyback last day to buy is not available as of now.
The Gandhi Special Tubes Limited Buyback is a Tender Offer.
Gandhi Special Tubes Limited Buyback Schedule
| Buyback Opening Date | September 21, 2021 |
| Buyback Closing Date | October 4, 2021 |
| Last Date for receipt of Tender Forms | October 6, 2021 |
| Finalisation of Buyback Acceptance | October 12, 2021 |
| Last Date for settlment of bids | October 13, 2021 |
| Last Date for Extinguishment of Shares | October 20, 2021 |
The Gandhi Special Tubes Limited Buyback is being offered at Rs ₹550 per share.
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 1 Equity Shares out of every 8 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 12 Equity Shares out of every 221 fully paid-up Equity Shares held on the Record Date. |
The issue size of Gandhi Special Tubes Limited Buyback is 7,66,616 equity shares at ₹550 per share aggregating up to ₹42.16 Crores.
The Buyback aims to :
i) Return surplus cash to the shareholders, thereby, optimizing returns to the shareholders and enhancing the overall shareholders’ value.
ii) Improve Return on Equity, Earnings per share, enhance return on invested capital, and thereby enhance shareholder value in the long term.
All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.
The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.
The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.
The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.
The Gandhi Special Tubes Limited Buyback offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.
