Tender Offer | ₹123.73 Crores | Listed at BSE, NSE | Wed, Sep 22, 2021 - Tue, Oct 5, 2021
Star Cement Ltd. Buyback is a tender offer for the repurchase of up to 0.82 crore equity shares at a buyback price of ₹150 per share with a face value of ₹1 per share, aggregating to ₹123.73 crores.
The record date for determining eligible shareholders is Aug 26, 2021. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Sep 22, 2021 and closes on Oct 5, 2021, with the last date for receipt of tender forms being Oct 7, 2021.
The finalisation of buyback acceptance is expected on Oct 13, 2021, followed by settlement of bids on Oct 14, 2021.
Narnolia Financial Services Ltd. is the Manager to the Buyback and Maheshwari Datamatics Pvt.Ltd. is the Registrar and Eureka Stock & Share Broking Services Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the Star Cement Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Wed, Sep 22, 2021
Offer Closing Date
Tue, Oct 5, 2021
Buyback Price
₹150 per share
Record Date
August 26, 2021
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 6 Equity Shares out of every 47 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 115 fully paid-up Equity Shares held on the Record Date. |
| Particulars | For the year/period ended (Rs.in Crores) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Income | 1,685.16 | 1,801.33 | 1,734.88 |
| Profit After Tax | 157.27 | 218.70 | 255.89 |
| Net Worth | 1,268.45 | 1,111.17 | 1,044.87 |
| Reserves and Surplus | 1,227.20 | 1,069.93 | 1,002.95 |
Established in 2001, Star Cement is engaged in the business of manufacturing cement and cement clinker. The Company mainly concentrates its business in North-eastern and Eastern part of the Country and is a leading brand in the Region. The Company has become a major player in North-eastern India due to location advantages, timely availability of raw materials, proactive capacity expansion programming, and consistent brand positioning.
The company’s plant is in Meghalaya and Cement Grinding Units are situated at Sonapur, Guwahati in the State of Assam and at Siliguri, West Bengal. It has offices at Guwahati, Patna, Siliguri, and New Delhi and the head office is in Kolkata.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jul-2021 | 119.00 | 107.00 | 111.73 |
| Jun-2021 | 117.90 | 101.10 | 109.23 |
| May-2021 | 115.00 | 98.00 | 106.07 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jul-2021 | 119.25 | 106.85 | 111.76 |
| Jun-2021 | 117.95 | 101.05 | 109.30 |
| May-2021 | 115.30 | 99.80 | 106.24 |
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.
iii) The Buyback will help in optimizing the capital structure.
Star Cement Ltd.
Lumshnong, P.O.: Khaliehriat,
Dist.: East Jaintia Hills,
Meghalaya – 793210
East Jaintia Hills, Meghalaya
Lead Manager(s)
Registered Broker
The Star Cement Buyback opens on September 22, 2021, and closes on October 5, 2021.
The Star Cement Buyback last day to buy is not available as of now.
The Star Cement Buyback is a Tender Offer.
Star Cement Buyback Schedule
| Buyback Opening Date | September 22, 2021 |
| Buyback Closing Date | October 5, 2021 |
| Last Date for receipt of Tender Forms | October 7, 2021 |
| Finalisation of Buyback Acceptance | October 13, 2021 |
| Last Date for settlment of bids | October 14, 2021 |
| Last Date for Extinguishment of Shares | October 21, 2021 |
The Star Cement Buyback is being offered at Rs ₹150 per share.
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 6 Equity Shares out of every 47 fully paid-up Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 115 fully paid-up Equity Shares held on the Record Date. |
The issue size of Star Cement Buyback is 82,48,580 equity shares at ₹150 per share aggregating up to ₹123.73 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.
iii) The Buyback will help in optimizing the capital structure.
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 Star Cement 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.
