Sharda Motor Industries Buyback 2024

Sharda Motor Industries Ltd Buyback

Sharda Motor Industries Buyback 2024
Tender Offer

₹1,800.00

Buyback price per share

04 Jun, 2024

Last Date to buy shares

05 Jun, 2024

Record Date

11 Jun, 2024

Offer Opens

18 Jun, 2024

Offer Closes

18 Jun, 2024

Last Date for Tender Forms

24 Jun, 2024

Finalisation of Buyback Acceptance

25 Jun, 2024

Last Date for settlement of bids

04 Jul, 2024

Last Date for Extinguishment of Shares
About Sharda Motor Industries Ltd Buyback Company

Sharda Motor Industries Limited (SMIL) is based in New Delhi, India. It specializes in the production, assembly, and distribution of automotive and white goods components to OEMs. SMIL is an ISO 9001-certified company with a wide range of products, including sheet metal component, exhaust systems, seat frames, fuel tanks, and other automotive components.

SMIL established an R&D centre in 2010 at Mahindra World City, 45 km from Chennai airport, to design, test, and validate exhaust systems for passenger vehicles, commercial vehicles, and non-automotive applications. In 2004, SMIL established a unit to supply Air Conditioner Cabinet assembly for Samsung India.

Sharda Motor is a manufacturer of a wide range of products that includes Exhaust Systems, Catalytic Converters, Independent Suspension, Seat Frames, Seat Covers (for Two-Wheelers and four-wheelers), Soft-Top Canopies, and Pressed parts for white goods. The company takes pride in meeting the needs of its customers promptly and accurately while maintaining the highest quality standards. They offer all their employees equal opportunities for development, advancement, and growth. Sharda Motor has modern manufacturing facilities with a continuous focus on innovation, technology upgradation, research, and development to provide the best products and services to their customers.

Read More
Sharda Motor Industries Ltd Buyback Details
  • Security Name Sharda Motor Industries Ltd
  • Buyback Price ₹1,800.00
  • Face Valuet ₹2.00
  • Listing at Group BSE,NSE
  • Lead Manager Ambit Private Limited
  • Issue Size 1,027,777 (3.46% of Total number of equity Shares)
  • Buyback Docs Letter Of Offer
Sharda Motor Industries Ltd Buyback Ratio
Categoryy Entitlement Ratio of Buyback Shares Offered
Reserved Category for Small Shareholders 5/24 154167
General Category for all other Eligible Shareholders 1/33 873610
Sharda Motor Industries Ltd Buyback Company Financials
All values are in ₹ Cr.
31-Dec-23 31-Mar-22 31-Mar-21
Profit After Tax 205.43 161.49 78.59
Reserves And Surplus 541.65 356.69 --
Total Assets 1,388.93 1,065.73 972.73
Total Borrowing -- -- --
Net Worth 781.82 599.77 445.45
Total Revenue 2,741.67 2,284.85 1,757.99
How to Participate in Sharda Motor Industries Ltd Buyback?
Hold shares on Record Date
Firstly, to be eligible for the buyback the investor should have shares of Sharda Motor Industries Ltd Buyback in Demat or physical form as on the record date Jun 5, 2024.
Tender via Broker or Exchange
Once you have shares in Demat, you can participate in the buyback process which is opening from Jun 11, 2024 by tendering your shares through your broker on BSE,NSE.
Receive Payment & Reversal
Then on Jul 4, 2024, the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.
Calculation of Investment in Sharda Motor Industries Ltd Buyback Buyback 2026
Maximum market value of a share holder as on record date
₹200,000.00
Buyback price per share
₹1,800.00
Maximum share for small shareholders (200000/ 1800)
111.11 share
Closing price of stock as of 2024-04-18
₹1,588.05
Maximum amount insted in buyback (₹1,588.05 x 111 shares)
₹176,450.00

* No. of shares stands to change according to the closing price on the record date

* For simplicity, we have considered the price on date Apr 18, 2024

Expected Profit from the Sharda Motor Industries Ltd Buyback on the bases of acceptance Ratio:
Acceptance Ratio Amount Invested in Buyback No. of Shares Buyback Buyback Profit Profit%
33% ₹176,450.00 36 7630 4.32%
50% ₹176,450.00 55 11657 6.61%
75% ₹176,450.00 83 17591 9.97%
100% ₹176,450.00 111 23526 13.33%

Amount Invested in Buyback: ₹176,450.00

33% Acceptance Ratio
Shares Buyback: 36
Buyback Profit: 7630
Profit %: 4.32%
50% Acceptance Ratio
Shares Buyback: 55
Buyback Profit: 11657
Profit %: 6.61%
75% Acceptance Ratio
Shares Buyback: 83
Buyback Profit: 17591
Profit %: 9.97%
100% Acceptance Ratio
Shares Buyback: 111
Buyback Profit: 23526
Profit %: 13.33%
Sharda Motor Industries Ltd Buyback - Necessity of the Objective

The Buy-Back will help the Company to return surplus cash to its shareholders holding ordinary shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.

The buyback which is being implemented through the tender route as prescribed by the Buyback regulations, involves allocation of the number of equity shares as per their entitlement as 15% of the number of equity shares to be bought back whichever is higher, reserved for small shareholders. The Company believes that the reservation for small shareholders would benefit a large number of public shareholders, who would get classified as small shareholders as per Regulation 2(i)(n) of the Buy-Back Regulations

The Buy-Back would help in improving return on equity by reducing the share capital base and increasing shareholder's value in the longer term

The Buy-Back gives an option to the shareholders holding ordinary shares of the Company, who can choose to participate and get cash in lieu of ordinary shares to be accepted under the Buy-Back offer or they may choose not to participate and benefit from a resultant increase in their percentage shareholding, post the Buy-Back offer, without additional investment

Contact Details

Sharda Motor Industries Ltd Buyback

D-188, Okhla Industrial Area, Phase-INew Delhi-110020

+011 4733 4100

smil@shardamotor.com

https://www.shardamotor.com/

Registrar Contact Details

Link Intime India Private Ltd

shardamotor.buyback2024@linkintime.co.in

+91-22-4918 6270

https://linkintime.co.in/initial_offer/public-issues.html