Tender Offer | ₹35.70 Crores | Listed at NSE | Fri, Sep 17, 2021 - Thu, Sep 30, 2021
Shriram Pistons & Rings Ltd. Buyback is a tender offer for the repurchase of up to 0.04 crore equity shares at a buyback price of ₹1020 per share with a face value of ₹10 per share, aggregating to ₹35.70 crores.
The record date for determining eligible shareholders is Aug 12, 2021. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Sep 17, 2021 and closes on Sep 30, 2021, with the last date for receipt of tender forms being Oct 4, 2021.
The finalisation of buyback acceptance is expected on Oct 7, 2021, followed by settlement of bids on Oct 11, 2021.
Edelweiss Financial Services Ltd. is the Manager to the Buyback and Alankit Assignments Ltd. is the Registrar and Edelweiss Securities Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the Shriram Pistons & Rings Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Fri, Sep 17, 2021
Offer Closing Date
Thu, Sep 30, 2021
Buyback Price
₹1020 per share
Record Date
August 12, 2021
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 426 Equity Shares out of every 485 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 151 fully paid-up Equity Shares held on the Record Date. |
| Particulars | For the year/period ended (Rs.in Million) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Income | 16,161.75 | 16,266.12 | 19,785.35 |
| Profit After Tax | 887.51 | 730.35 | 1,384.50 |
| Net Worth | 11,384.15 | 10,607.72 | 10,166.92 |
| Reserves and Surplus | 10,772.12 | 9,994.55 | 9,837.00 |
Shriram Pistons & Rings are engaged in the manufacturing and marketing of engine components such as pistons, piston pins, piston rings, engine valves, and crank pins, etc.. The company is also engaged in the marketing of other engine components such as cylinder liners, clutch plates, brake pads, filters, gaskets, lubricating oil, etc.. Shriram Pistons & Rings market its products worldwide.
The company has 2 plants in UP and 1 in Rajasthan. Assembly units of the Company are located at Gurugram, Pune, Hosur, Becharji (Gujarat), and Sahibabad.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jul-2021 | 1,113.75 | 878.00 | 953.26 |
| Jun-2021 | 1,048.80 | 746.00 | 852.27 |
| May-2021 | 870.95 | 740.85 | 784.36 |
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.
Shriram Pistons & Rings Ltd.
3 rd Floor, Himalaya House,
23, Kasturba Gandhi Marg,
New Delhi – 110001
New Delhi, New Delhi, 110001
Lead Manager(s)
Registered Broker
The Shriram Pistons & Rings Buyback opens on September 17, 2021, and closes on September 30, 2021.
The Shriram Pistons & Rings Buyback last day to buy is not available as of now.
The Shriram Pistons & Rings Buyback is a Tender Offer.
Shriram Pistons & Rings Buyback Schedule
| Buyback Opening Date | September 17, 2021 |
| Buyback Closing Date | September 30, 2021 |
| Last Date for receipt of Tender Forms | October 4, 2021 |
| Finalisation of Buyback Acceptance | October 7, 2021 |
| Last Date for settlment of bids | October 11, 2021 |
| Last Date for Extinguishment of Shares | October 18, 2021 |
The Shriram Pistons & Rings Buyback is being offered at Rs ₹1020 per share.
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 426 Equity Shares out of every 485 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 151 fully paid-up Equity Shares held on the Record Date. |
The issue size of Shriram Pistons & Rings Buyback is 3,50,000 equity shares at ₹1020 per share aggregating up to ₹35.70 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 Shriram Pistons & Rings 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.
