Tender Offer | ₹11.00 Crores | Listed at BSE | Wed, Sep 11, 2024 - Thu, Sep 19, 2024
Ladderup Finance Ltd. Buyback is a tender offer for the repurchase of up to 0.25 crore equity shares, representing 19.45% of the total paid-up equity share capital at a buyback price of ₹44 per share with a face value of ₹10 per share, aggregating to ₹11.00 crores.
The record date for determining eligible shareholders is Sep 6, 2024. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Sep 11, 2024 and closes on Sep 19, 2024, with the last date for receipt of tender forms being Sep 18, 2024.
The finalisation of buyback acceptance is expected on Sep 24, 2024, followed by settlement of bids on Sep 25, 2024.
Mark Corporate Advisors Pvt.Ltd. is the Manager to the Buyback and MUFG Intime India Pvt.Ltd. is the Registrar and Pravin Ratilal Share and Stock Brokers Ltd is the Registered Broker to the Buyback.
Investors are advised to refer to the Ladderup Finance Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Wed, Sep 11, 2024
Offer Closing Date
Thu, Sep 19, 2024
Buyback Price
₹44 per share
Record Date
September 6, 2024
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 265 Equity Shares out of every 288 Fully paid-up Equity Shares held on the Record Date. | 3,75,000 |
| General Category for all other Eligible Shareholders | 177 Equity Shares out of every 428 Fully paid-up Equity Shares held on the Record Date. | 21,25,000 |
Ladderup Finance Ltd.'s revenue increased by 13% and profit after tax (PAT) dropped by -200% between the financial year ending with March 31, 2024 and March 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 99.67 | 79.8 | 78.86 | |||||||||||||||||||||||||||
| Revenue | 12.62 | 11.18 | 11.69 | |||||||||||||||||||||||||||
| Profit After Tax | -3.93 | -1.31 | 3.65 | |||||||||||||||||||||||||||
| Net Worth | 68.01 | 64.38 | 65.66 | |||||||||||||||||||||||||||
| Total Borrowing | 11.94 | 1.7 | 2.08 | |||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||
Ladderup Finance Limited was founded in 1993 and is a financial services company that offers various financial solutions.
Ladderup Finance Limited is an NBFC registered with the RBI as an investment company. The company mainly invests in securities of listed and unlisted companies with a focus on medium to long-term investments. The company’s investment portfolio is diversified across various sectors such as financial services, healthcare, retail, packaging, QSR, information technology, real estate, etc.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Aug-2024 | 49.50 | 40.10 | 43.38 |
| Jul-2024 | 51.50 | 36.04 | 41.52 |
| Jun-2024 | 45.00 | 33.00 | 37.88 |
The Company is proposing the Buyback to service the equity more efficiently. Additionally, the Company's management strives to increase the value of equity shareholders.
After considering several factors and benefits to the shareholders holding Equity Shares of the Company, the Board decided to approve Buyback of up to 25,00,000 (Twenty Five Lakhs) Equity Shares of face value of 10 (Rupees Ten) each for 44/- (Rupees Forty Four only) per Equity Share for an aggregate amount not exceeding 11,00,00,000 (Rupees Eleven Crores Only) excluding the Transaction Costs, for distributing cash to the eligible shareholders. The Buyback is being undertaken, inter alia, for the following
reasons:
i) The Buyback will help the Company to return surplus funds to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby enhancing the overall return to shareholders;
ii) The Buyback will help the Company to optimise the capital structure;
iii) The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of several Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back, whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who get classified as "small shareholder" as per Regulation 2(1)(n) of the SEBI Buyback Regulations. After accepting the equity shares tendered based on entitlement, equity shares left to be bought back, if any in one category shall first be accepted, in proportion to the equity shares tendered over and above their entitlement in the offer by equity shareholders in that category and thereafter from equity shareholders who have tendered over and above their entitlement in other category.
iv) The Buyback may help in improving financial ratios like earning per share, return on capital employed and return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders' value; and
v) The Buyback gives an option to the shareholders holding Equity Shares of the Company. They can choose to participate and receive cash instead of Equity Shares to be accepted under the Buyback offer, or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post-buyback offer, without additional investment.
Ladderup Finance Ltd.
102-A, 1 st Floor, Hallmark Business Plaza,
Sant Dyaneshwar Marg, Near Gurunanak Hospital,
Bandra (East), Mumbai - 400051
Bandra, Maharashtra, 400051
Lead Manager(s)
Registered Broker
The Ladderup Finance Buyback 2024 opens on September 11, 2024, and closes on September 19, 2024.
Last date to be eligible to participate in buyback is September 5, 2024.
The Ladderup Finance Buyback 2024 is a Tender Offer.
Ladderup Finance Buyback 2024 Schedule
| Buyback Opening Date | September 11, 2024 |
| Buyback Closing Date | September 19, 2024 |
| Last Date for receipt of Tender Forms | September 18, 2024 |
| Finalisation of Buyback Acceptance | September 24, 2024 |
| Last Date for settlment of bids | September 25, 2024 |
| Last Date for Extinguishment of Shares | October 7, 2024 |
The Ladderup Finance Buyback 2024 is being offered at Rs ₹44 per share.
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 265 Equity Shares out of every 288 Fully paid-up Equity Shares held on the Record Date. | 3,75,000 |
| General Category for all other Eligible Shareholders | 177 Equity Shares out of every 428 Fully paid-up Equity Shares held on the Record Date. | 21,25,000 |
The issue size of Ladderup Finance Buyback 2024 is 25,00,000 equity shares at ₹44 per share aggregating up to ₹11.00 Crores.
The Company is proposing the Buyback to service the equity more efficiently. Additionally, the Company's management strives to increase the value of equity shareholders.
After considering several factors and benefits to the shareholders holding Equity Shares of the Company, the Board decided to approve Buyback of up to 25,00,000 (Twenty Five Lakhs) Equity Shares of face value of 10 (Rupees Ten) each for 44/- (Rupees Forty Four only) per Equity Share for an aggregate amount not exceeding 11,00,00,000 (Rupees Eleven Crores Only) excluding the Transaction Costs, for distributing cash to the eligible shareholders. The Buyback is being undertaken, inter alia, for the following
reasons:
i) The Buyback will help the Company to return surplus funds to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby enhancing the overall return to shareholders;
ii) The Buyback will help the Company to optimise the capital structure;
iii) The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of several Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back, whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who get classified as "small shareholder" as per Regulation 2(1)(n) of the SEBI Buyback Regulations. After accepting the equity shares tendered based on entitlement, equity shares left to be bought back, if any in one category shall first be accepted, in proportion to the equity shares tendered over and above their entitlement in the offer by equity shareholders in that category and thereafter from equity shareholders who have tendered over and above their entitlement in other category.
iv) The Buyback may help in improving financial ratios like earning per share, return on capital employed and return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders' value; and
v) The Buyback gives an option to the shareholders holding Equity Shares of the Company. They can choose to participate and receive cash instead of Equity Shares to be accepted under the Buyback offer, or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post-buyback offer, without additional investment.
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 Ladderup Finance Buyback 2024 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.
