Tender Offer | ₹195.00 Crores | Listed at BSE, NSE | Tue, May 16, 2023 - Mon, May 22, 2023
Welspun India Ltd. Buyback is a tender offer for the repurchase of up to 1.63 crore equity shares at a buyback price of ₹120 per share with a face value of ₹1 per share, aggregating to ₹195.00 crores.
The record date for determining eligible shareholders is May 10, 2023. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on May 16, 2023 and closes on May 22, 2023, with the last date for receipt of tender forms being May 22, 2023.
The finalisation of buyback acceptance is expected on May 26, 2023, followed by settlement of bids on May 29, 2023.
Dam Capital Advisors Ltd. is the Manager to the Buyback and MUFG Intime India Pvt.Ltd. is the Registrar and DAM Capital Advisors Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the Welspun India Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Tue, May 16, 2023
Offer Closing Date
Mon, May 22, 2023
Buyback Price
₹120 per share
Record Date
May 10, 2023
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 5 Equity Shares out of every 81 Fully paid-up Equity Shares held on the Record Date. | 2,437,500.00 |
| General Category for all other Eligible Shareholders | 1 Equity Shares out of every 69 Fully paid-up Equity Shares held on the Record Date. | 13,812,500.00 |
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 31-Mar-19 | 7,742.28 | 6,608.44 | 226.18 | 2,779.30 | 2,623.55 | 1,908.43 |
| 31-Mar-20 | 8,310.28 | 6,836.18 | 524.36 | 2,972.10 | 2,972.50 | 1,684.85 |
| 31-Mar-21 | 8,677.78 | 7,407.95 | 550.79 | 3,644.70 | 3,516.39 | 1,096.19 |
| 31-Mar-22 | 9,436.85 | 9,377.31 | 606.70 | 3,971.70 | 3,862.03 | 1,214.18 |
| 31-Mar-23 | 8,650.00 | 82,151.00 | 202.51 | 40,878.00 | 3,974.85 | |
| Amount in ₹ Crore | ||||||
Welspun India Limited is a textile company based in Mumbai, Maharashtra. It is a flagship company of the Welspun Group.
Welspun India is engaged in the business of home textiles offering utility bedding, bed sheets, and fashion bedding products. It also offers flooring solutions through the Spunlace, Needlepunch, and Wet Wipes product categories.
The company offers:
The company incorporates non-woven technologies, metallic needling, and high-temperature bonding to manufacture innovative materials, for a wide range of customer applications, including personal hygiene, homecare, medical, and industrial among other segments.
Its brand list includes Christy England, Spaces - Bed, Bath & Rugs, Welhome, Living by Christy, Welspun Flooring, Scott Living, and Kingsley.
Welspun India is Asia's largest and the 2nd largest terry towel producer in the world. It exports around 94% of its home textile products to 50+ countries. Out of which it exports more than 68% of its production to the US, 23% to Europe, and the balance to the Middle East, Australia, and Mauritius. It supplies 17 out of the top 30 retail chains in the world.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Mar-2023 | 70.37 | 62.20 | 66.47 |
| Feb-2023 | 73.00 | 63.60 | 68.96 |
| Jan-2023 | 77.65 | 65.25 | 72.25 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Mar-2023 | 70.40 | 62.00 | 66.50 |
| Feb-2023 | 71.85 | 63.50 | 69.00 |
| Jan-2023 | 77.70 | 66.25 | 72.29 |
The Buy-back is being undertaken for the following reasons:
Welspun India Ltd.
6th Floor, Kamala Mills Compound,
Senapati Bapat Marg, Lower Parel,
Mumbai 400 013
Mumbai, Maharashtra, 400013
Lead Manager(s)
Registered Broker
The Welspun India Buyback 2023 opens on May 16, 2023, and closes on May 22, 2023.
Last date to be eligible to participate in buyback is May 9, 2023.
The Welspun India Buyback 2023 is a Tender Offer.
Welspun India Buyback 2023 Schedule
| Buyback Opening Date | May 16, 2023 |
| Buyback Closing Date | May 22, 2023 |
| Last Date for receipt of Tender Forms | May 22, 2023 |
| Finalisation of Buyback Acceptance | May 26, 2023 |
| Last Date for settlment of bids | May 29, 2023 |
| Last Date for Extinguishment of Shares | June 7, 2023 |
The Welspun India Buyback 2023 is being offered at Rs ₹120 per share.
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 5 Equity Shares out of every 81 Fully paid-up Equity Shares held on the Record Date. | 2,437,500.00 |
| General Category for all other Eligible Shareholders | 1 Equity Shares out of every 69 Fully paid-up Equity Shares held on the Record Date. | 13,812,500.00 |
The issue size of Welspun India Buyback 2023 is 1,62,50,000 equity shares at ₹120 per share aggregating up to ₹195.00 Crores.
The Buy-back is being undertaken for the following reasons:
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 Welspun India 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.
