Tender Offer | ₹61.25 Crores | Listed at BSE, NSE | Mon, Mar 13, 2023 - Mon, Mar 27, 2023
VRL Logistics Ltd. Buyback is a tender offer for the repurchase of up to 0.09 crore equity shares at a buyback price of ₹700 per share with a face value of ₹10 per share, aggregating to ₹61.25 crores.
The record date for determining eligible shareholders is Feb 10, 2023. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Mar 13, 2023 and closes on Mar 27, 2023, with the last date for receipt of tender forms being Mar 27, 2023.
The finalisation of buyback acceptance is expected on Apr 6, 2023, followed by settlement of bids on Apr 10, 2023.
Motilal Oswal Investment Advisors Ltd. is the Manager to the Buyback and Kfin Technologies Ltd. is the Registrar and Motilal Oswal Financial Services Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the VRL Logistics Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Mon, Mar 13, 2023
Offer Closing Date
Mon, Mar 27, 2023
Buyback Price
₹700 per share
Record Date
February 10, 2023
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 1 Equity Shares out of every 26 Fully paid-up Equity Shares held on the Record Date. | 131,250.00 |
| General Category for all other Eligible Shareholders | 1 Equity Shares out of every 114 Fully paid-up Equity Shares held on the Record Date. | 743,750.00 |
| Period Ended | Total Revenue | Profit After Tax | Net Worth | Total Borrowing |
|---|---|---|---|---|
| 31-Mar-20 | 2128.86 | 90.11 | 616.87 | 189.3 |
| 31-Mar-21 | 1775.79 | 45.07 | 597.14 | 119.57 |
| 31-Mar-22 | 2410.47 | 160.11 | 651.63 | 143.48 |
| Amount in ₹ Crore | ||||
Incorporated in 1983 as 'Vijayanand Roadlines Private Limited', the company became a public limited company in 1997, and its name was changed to 'VRL Logistics Limited'.
The company is engaged in the business of general parcel and priority parcel delivery (less than truckload services), courier, and full-truckload services through a widespread transportation network in 22 States and five Union Territories across India.
The company has capabilities for the transportation of vehicles (cars) and liquids. It undertakes the movement of specialized cargo such as delicate testing equipment, high voltage testing equipment, high voltage control panels, high voltage circuit breakers, automobile chassis frames, extra-wide cabins, glass, high-capacity transformers, etc.
VRL Logistics also offers travel, transport of passengers by air, and outdoor branding services.
The company finds mention in the Limca Book of Record as the largest fleet owner of commercial vehicles in India in the private sector.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jan-2023 | 574.80 | 506.50 | 546.05 |
| Dec-2022 | 589.45 | 512.75 | 554.43 |
| Nov-2022 | 618.65 | 509.05 | 564.86 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Jan-2023 | 575.00 | 507.70 | 546.30 |
| Dec-2022 | 589.00 | 512.40 | 554.60 |
| Nov-2022 | 618.95 | 509.55 | 564.90 |
The Buyback offers the following advantages:
a) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
b) The Buyback may help in improving its return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders' value.
VRL Logistics Ltd.
Giriraj Annexe,
Circuit House Road,
Hubballi – 580029
Hubballi, Karnataka, 580029
Lead Manager(s)
Registered Broker
The VRL Logistics Buyback 2023 opens on March 13, 2023, and closes on March 27, 2023.
Last date to be eligible to participate in buyback is February 9, 2023.
The VRL Logistics Buyback 2023 is a Tender Offer.
VRL Logistics Buyback 2023 Schedule
| Buyback Opening Date | March 13, 2023 |
| Buyback Closing Date | March 27, 2023 |
| Last Date for receipt of Tender Forms | March 27, 2023 |
| Finalisation of Buyback Acceptance | April 6, 2023 |
| Last Date for settlment of bids | April 10, 2023 |
| Last Date for Extinguishment of Shares | April 17, 2023 |
The VRL Logistics Buyback 2023 is being offered at Rs ₹700 per share.
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 1 Equity Shares out of every 26 Fully paid-up Equity Shares held on the Record Date. | 131,250.00 |
| General Category for all other Eligible Shareholders | 1 Equity Shares out of every 114 Fully paid-up Equity Shares held on the Record Date. | 743,750.00 |
The issue size of VRL Logistics Buyback 2023 is 8,75,000 equity shares at ₹700 per share aggregating up to ₹61.25 Crores.
The Buyback offers the following advantages:
a) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
b) The Buyback may help in improving its return on equity, by reduction in the equity base, 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 VRL Logistics 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.
