Tender Offer | ₹325.00 Crores | Listed at BSE, NSE | Thu, Aug 31, 2023 - Wed, Sep 6, 2023
KRBL Ltd. Buyback is a tender offer for the repurchase of up to 0.65 crore equity shares at a buyback price of ₹500 per share with a face value of ₹1 per share, aggregating to ₹325.00 crores.
The record date for determining eligible shareholders is Aug 25, 2023. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Aug 31, 2023 and closes on Sep 6, 2023, with the last date for receipt of tender forms being Sep 6, 2023.
The finalisation of buyback acceptance is expected on Sep 12, 2023, followed by settlement of bids on Sep 13, 2023.
Elara Capital (India) Pvt.Ltd. is the Manager to the Buyback and Alankit Assignments Ltd. is the Registrar and Elara Securities (India) Private Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the KRBL Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Thu, Aug 31, 2023
Offer Closing Date
Wed, Sep 6, 2023
Buyback Price
₹500 per share
Record Date
August 25, 2023
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 51 Equity Shares out of every 292 Fully paid-up Equity Shares held on the Record Date. | 975,000.00 |
| General Category for all other Eligible Shareholders | 5 Equity Shares out of every 208 Fully paid-up Equity Shares held on the Record Date. | 5,525,000.00 |
| Period Ended | 31 Mar 2021 | 31 Mar 2022 |
| Assets | 4,627.83 | 4,748.02 |
| Revenue | 4,014.56 | 4,253.27 |
| Profit After Tax | 558.91 | 459.40 |
| Net Worth | 3,693.00 | 4,070.00 |
| Reserves and Surplus | ||
| Total Borrowing |
Incorporated in 1993, KRBL Limited is engaged in the business of manufacturing and marketing rice products.
KRBL is world'd largest rice millers and rice exporter of branded basmati rice, and possesses the world's largest plant in Punjab, India spread across 200 acres.
The company's product folio has over 14 brands under the name India Gate - a basmati rice brand, which contributes over 67% to the branded basmati portfolio. Its brand list includes India Gate Classic, Unity Basmati Briyani Rice, India Gate Brown Rice, India Gate Jeera Rice, and so on. KRBL has a presence in over 6 continents, and 82 countries, and has over 500+ domestic dealers and distributors network.
KRBL's manufacturing facility has a 195 MT/hour paddy milling capacity. Its warehousing facility is spread across 346 acres and has a capacity of over 1 million MT of rice and paddy storage capacity.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Aug-2023 | 418.85 | 371.55 | 398.82 |
| Jul-2023 | 390.00 | 335.65 | 362.41 |
| Jun-2023 | 376.00 | 339.00 | 353.18 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Aug-2023 | 419.00 | 370.55 | 399.02 |
| Jul-2023 | 390.50 | 335.45 | 362.41 |
| Jun-2023 | 376.30 | 338.90 | 352.81 |
The Buyback is being undertaken for the following reasons:
1. The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares thereby enhancing the overall return for them.
2. The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base of the Company, thereby leading to long term increase in shareholders' value.
KRBL Ltd.
5190, Lahori Gate,
Delhi – 110006,
Delhi, New Delhi, 110006
Lead Manager(s)
Registered Broker
The KRBL Buyback 2023 opens on August 31, 2023, and closes on September 6, 2023.
Last date to be eligible to participate in buyback is August 24, 2023.
The KRBL Buyback 2023 is a Tender Offer.
KRBL Buyback 2023 Schedule
| Buyback Opening Date | August 31, 2023 |
| Buyback Closing Date | September 6, 2023 |
| Last Date for receipt of Tender Forms | September 6, 2023 |
| Finalisation of Buyback Acceptance | September 12, 2023 |
| Last Date for settlment of bids | September 13, 2023 |
| Last Date for Extinguishment of Shares | August 25, 2023 |
The KRBL Buyback 2023 is being offered at Rs ₹500 per share.
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 51 Equity Shares out of every 292 Fully paid-up Equity Shares held on the Record Date. | 975,000.00 |
| General Category for all other Eligible Shareholders | 5 Equity Shares out of every 208 Fully paid-up Equity Shares held on the Record Date. | 5,525,000.00 |
The issue size of KRBL Buyback 2023 is 65,00,000 equity shares at ₹500 per share aggregating up to ₹325.00 Crores.
The Buyback is being undertaken for the following reasons:
1. The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares thereby enhancing the overall return for them.
2. The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base of the Company, thereby leading to long term increase in shareholders' value.
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 KRBL Buyback 2023 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.
