DB Corp Ltd has notified BSE that its Board at its meeting held on May 26, 2018 has acquiesced in buyback offer for up to 92 lakh equity shares (being 5% of the total paid-up equity capital) at a price of Rs 340 per share.
The board has shaped a buyback committee for this. The company will purchase its 92 lakh equity shares at a price of Rs 340 a piece, for an total amount of Rs 312.80 cr, DB Corp has said in a filing to the BSE.
They have assured this does not change the fundamentals of the company. The promoters will tender up to a maximum of 34 lakh equity shares out of the 12.84 cr shares held by them. Promoters currently hold 69.82 per cent stake in the company.
The buyback will be subject to agreement of the shareholders by way of a special resolve through postal ballot and all other applicable statutory approvals.
The public announcement setting out the process, timelines and other statutory details will be released in due course in accordance with the buyback regulations. Institutions held 21.09 % and Non-Institutions held 9.08 % stake in the company.
ABOUT THE COMPANY:
- D.B. Corp Ltd is one of India’s Largest Newspaper Groups. It has very important existence in the digital space and radio. It is developing its existence covering India’s handsome customer markets, the Tier II and Tier III cities.
- D.B. Corp Ltd covers thirteen states. At the same time it owns a powerful leadership setting in most of the markets where it employs. It pursues to create value for its stakeholders with a track record of growth and value creation.
- D.B. Corp Ltd. is India’s largest newspaper Group which has 65 editions published in 4 languages and an average daily readership of ~44 mn readers covering 13 states.
The company has a sundry portfolio of newspapers, online offerings and a strong existence in the radio business. The company mirrors the pulse of Tier II and Tier III cities of India.
The company furnishes best-in-class products and proffers advertisers enormous moments to apprehend the untapped prospective that these transpiring cities offer.
BUY BACK OFFER INFO:
Buyback Type: Tender Offer
Buyback Offer Amount: 312.8 Cr
Date of Board Meeting approving the proposal: May 27 2018
Date of Public Announcement: Jun 27 2018
Buyback Offer Size: 5%
Buyback Number of Shares: 92,00,000
FV: 10
Buyback Price: 340 Per Equity Share
HOW TO TAKE PART IN BUYBACK?
- he investor should have shares of DB Corp Limited Buyback in demat or physical form as on record date to be eligible for the buyback
- If a person has shares in demat, he or she can take part in the buyback process by selling his\/her shares through his/her broker on NSE or BSE.
- The payment will be given to seller for accepted shares while the unaccepted shares will be returned to sellers’ demat account.
- 15% shares are reserved for small investor holding shares below value of Rs 200000. It means 13.80 lakh shares are reserved for small investor.
- On March 2018, shareholders who are in small category held 45.88 lakh shares. Simply, minimum 30% shares would go in buy back.
PROFIT FROM THE BUYBACK ON THE BASES OF ACCEPATANCE RATIO:
| DB Corp Limited Buyback offer calculation for investment of Rs 2,00,000 @ 265 per share (total number of shares will be 754) | |||
| % Share Accepted | No of Shared Accepted | Gain from Buyback Offer | Cost of remaining share( Rs per share) Rs 265 – (Gain from buyback / number of remaining share) |
| 33% | 248 | Rs 18600 | 265 – 36.75 = Rs 228.25 |
| 50% | 377 | Rs 28275 | 265 – 75 = Rs 190 |
| 75% | 566 | Rs 42450 | 265 – 225.7 = Rs 39.3 |
| 100% | 754 | Rs 56550 | N/A |
- There is only 2.49% holding in D. B. Corp Ltd by small investors, hence, there will be chance of 50% to 60% shares acceptance in buy back.
- D.B. Corp Ltd shares has 52 week low is Rs 235
COMPANY CONTACT DETAILS:
DB Corp Limited,
Plot no. 280,
Sarkhej Gandhi Nagar Highway,
Near. YMCA Club,
Makarba,
Ahmedabad – 380051,
Gujarat.
Phone No. +91-79-39888850,
Fax: +91-79-39814001
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