CASE STUDY OF BRITANNIA LTD
Buyback through Book Building.
The maximum price at which the buy-back shall be made should be specified by a special resolution as in the case of buy-back through stock exchange.
The company shall appoint a merchant banker and make a public announcement in reference to the same.
The public announcement shall be made at least seven days prior to the commencement of buy-back.
(i) The deposit in the escrow account shall be made before the date of the public announcement.
(ii) The amount to be deposited in the escrow account shall be determined with reference to the maximum price as specified in public announcement.
Buyback through Book Building.
A copy of the public announcement shall be filed with the Board within two days of such announcement along with the fees as specified in the regulations.
The public announcement shall also contain the detailed methodology of the book-building process, the manner of acceptance, the format of acceptance to be sent by the shareholders pursuant to the public announcement and the details of bidding centres.
The book building process shall be made through an electronically linked transparent facility.
Buyback through Book Building.
The number of bidding centres shall not be less than thirty and there shall be at least one electronically linked computer terminal at all the bidding centres.
The offer for buy back shall remain open to the shareholders for a period not less than fifteen days and not exceeding thirty days.
The merchant banker and the company shall determine the buy-back price based on the acceptances received.
The final buy-back price, which shall be the highest price accepted should be paid to all holders whose shares have been accepted for buy-back.
The offer
To buyback fully paid-up equity shares of face value Rs.10 each.
Offer from the open market through the stock exchange.
Offer to buyback a maximum of 10,00,000 shares at a price not exceeding Rs.750 per equity share, payable in cash.
Maximum Buyback amount not exceeding Rs 550 million.
Buyback Size represents 23.37% of the aggregate of the Company’s paid up equity capital and free reserves.
Maximum number of shares to be bought back i.e. 10,00,000 shares, represent 3.59% of the paid up equity capital of the Company.
Maximum number of equity shares permitted to be bought back is 69,62,613 representing 25% of the total paid-up capital of the Company i.e. 278,50,450 equity shares of Rs. 10/- each.
Maximum number of shares to be bought back i.e. 10,00,000 shares, representing 3.59% of the paid up equity capital of the Company.
Maximum amount permissible for buyback i.e. 25% of the total paid up capital & free reserves is 588.425 million.
Maximum Buyback amount is 550 million which is 23.37% of the aggregate of the Company’s paid up capital & free reserves.
Particulars of Shareholders No.of Shares % of Share capital
Promoters 1,21,73,969 43.71
International Investors(FIIs) 24,84,031 8.92
Indian Financial Institution
(Banks, FIs) 55,43,089 19.90
Indian Mutual Funds 11,16,761 4.01
NRIs and OCBs 1,65,699 0.59
Public and others 63,66,901 22.87
TOTAL 2,78,50,450 100.00
The Company has substantial reserves.
The Company intends returning surplus cash to the shareholders.
The Buyback is expected to enhance the earnings per share of the company in future and create long term shareholder value.
The Company has appointed the brokers through whom the
purchases and settlement on account of the Buyback would be
made & the Company will pay the buyback consideration to the
brokers on every settlement date.
The Buyback of Shares will be made only through the order matching mechanism except “all or none” order matching system.
The Shares of the Company will be traded in the compulsory demat mode.
The shares shall be extinguished within 7 days from the date of acceptance of the shares
Buyback through Book Building.
The maximum price at which the buy-back shall be made should be specified by a special resolution as in the case of buy-back through stock exchange.
The company shall appoint a merchant banker and make a public announcement in reference to the same.
The public announcement shall be made at least seven days prior to the commencement of buy-back.
(i) The deposit in the escrow account shall be made before the date of the public announcement.
(ii) The amount to be deposited in the escrow account shall be determined with reference to the maximum price as specified in public announcement.
Buyback through Book Building.
A copy of the public announcement shall be filed with the Board within two days of such announcement along with the fees as specified in the regulations.
The public announcement shall also contain the detailed methodology of the book-building process, the manner of acceptance, the format of acceptance to be sent by the shareholders pursuant to the public announcement and the details of bidding centres.
The book building process shall be made through an electronically linked transparent facility.
Buyback through Book Building.
The number of bidding centres shall not be less than thirty and there shall be at least one electronically linked computer terminal at all the bidding centres.
The offer for buy back shall remain open to the shareholders for a period not less than fifteen days and not exceeding thirty days.
The merchant banker and the company shall determine the buy-back price based on the acceptances received.
The final buy-back price, which shall be the highest price accepted should be paid to all holders whose shares have been accepted for buy-back.
The offer
To buyback fully paid-up equity shares of face value Rs.10 each.
Offer from the open market through the stock exchange.
Offer to buyback a maximum of 10,00,000 shares at a price not exceeding Rs.750 per equity share, payable in cash.
Maximum Buyback amount not exceeding Rs 550 million.
Buyback Size represents 23.37% of the aggregate of the Company’s paid up equity capital and free reserves.
Maximum number of shares to be bought back i.e. 10,00,000 shares, represent 3.59% of the paid up equity capital of the Company.
Maximum number of equity shares permitted to be bought back is 69,62,613 representing 25% of the total paid-up capital of the Company i.e. 278,50,450 equity shares of Rs. 10/- each.
Maximum number of shares to be bought back i.e. 10,00,000 shares, representing 3.59% of the paid up equity capital of the Company.
Maximum amount permissible for buyback i.e. 25% of the total paid up capital & free reserves is 588.425 million.
Maximum Buyback amount is 550 million which is 23.37% of the aggregate of the Company’s paid up capital & free reserves.
Particulars of Shareholders No.of Shares % of Share capital
Promoters 1,21,73,969 43.71
International Investors(FIIs) 24,84,031 8.92
Indian Financial Institution
(Banks, FIs) 55,43,089 19.90
Indian Mutual Funds 11,16,761 4.01
NRIs and OCBs 1,65,699 0.59
Public and others 63,66,901 22.87
TOTAL 2,78,50,450 100.00
The Company has substantial reserves.
The Company intends returning surplus cash to the shareholders.
The Buyback is expected to enhance the earnings per share of the company in future and create long term shareholder value.
The Company has appointed the brokers through whom the
purchases and settlement on account of the Buyback would be
made & the Company will pay the buyback consideration to the
brokers on every settlement date.
The Buyback of Shares will be made only through the order matching mechanism except “all or none” order matching system.
The Shares of the Company will be traded in the compulsory demat mode.
The shares shall be extinguished within 7 days from the date of acceptance of the shares