Cheviot Company Limited is a group company under the Cheviot group. The Company’s primary business is engaged in the deals of the Jute products. Cheviot Company Limited is majorly involved in the manufacturing and production the Hessian cloth & Bags, sacking bags, Decorative Fabrics, Sacking Cloth, jute and jute, jute, and jute Jute blended Yarn and Jute blended Textile fibers. The Cheviot group has its production facility as the Jute Mills and Spinning centers in West Bengal. Cheviot is a well-established brand engaged in both the international and domestic markets. The company’s board approved a proposal to Cheviot company limited buyback equity shares worth up to Rs 43.12 crore. The Company stated recently that it has a strong focus on the quality standards due to which it has an objective to attain most of the quality assurance licensees. Cheviot Company Limited is also known as a Trading House by the GoI.
Cheviot Group is a very diversified group with a very diversified portfolio. The Cheviot Group is engaged in Jute, Tea, and Leather products. The Cheviot Company is getting an Export Oriented Unit (EOU) in Falta Special Economic Zone (FSEZ). Cheviot Group and its Group Companies have a team of highly qualified, skilled, experienced professionals in various sectors of its operation, from management to technology and analysis and production.
OBJECTIVE OF THE Cheviot Company Limited BUYBACK OFFER:
The Company stated that the necessity of the Buyback Issue aims at the following:
I) Policy of the Company to distribute their surplus funds in favor of the shareholders and increase and improve the overall Return of the shareholders.
II) To improve their financial ratios and other operational ratios such as Earnings per share (EPS), Return on Equity (ROE), Return on Capital Employed (RoCE), and Return on assets (ROA).
CHEVIOT COMPANY BUYBACK DETAIL:
| Issue Period | From Jan 10, 2022 to Jan 21, 2022 |
| Security Name | Cheviot Company Limited |
| Issue Type | Tender Offer |
| Issue Size in terms of the equity Shares | 3 lakh equity shares |
| Issue Size in terms of the Amount | Rs. 43.13 Crores |
| Buyback Price | Rs. 1725 per equity share |
| Face Value | Rs. 10 per equity share |
| Listing At | BSE |
| Buyback Offer Open Date | January 10, 2022 |
| Buyback Offer Closing Date | January 21, 2022 |
| Record Date for the offer | December 17, 2021 |
| Last Date for receipt of Tender Forms | January 25, 2022 |
| Finalisation of Buyback Acceptance from the company | January 28, 2022 |
| Last Date for the settlement of the bids | January 31, 2022 |
| Last Date for Extinguishment of Shares | February 9, 2022 |
BUYBACK RATIO:
| Category | Entitlement Ratio of Buyback |
| Reserved Category for Small Shareholders of the company | 13 Equity Shares out of every 141 equity shares held as on the record date for the buyback offer. |
| General Category that is been eligible for all other Shareholders | 31 Equity Shares out of every 854 equity shares held as on the record date for the buyback offer. |
MARKET REACTION ON BUYBACK:
The day when Cheviot Company informed Exchanges about its Buyback plan, the stock of the Cheviot Company surged 6.98%. The Cheviot company finalized the proposal of Rs.43.12 Crore’s buyback; it marked the jump in the stock’s daily average volume to nearly seven times, with 48,234 equity shares being traded. The Company informed the exchange that its buyback plan comprises 3.99% of the Company’s total paid-up equity capital. Cheviot Company has a high promoter holding of nearly 74.7747%. The Cheviot Company’s buyback is at a 22% premium from the CMP with the current price. The board also approved December 17, 2021, as the record date for their buyback proposal plan.
The proposed buyback plan of the Company will not cause any significant impact on the books and the parameters of the Company. However, there will be a slight reduction in the Company’s available cash for further investments. The Cheviot Company also stated that the funds for the proposed buyback would be sourced from their internal accruals, free reserves of the Company, and sources permitted for the Buy-Back as per the Regulations.
FINANCIAL PARAMETERS OF THE COMPANY:
| Particulars in Crores (Rs.) | March 21 | March 20 |
| Revenue | 396 | 458 |
| Expense | 343 | 401 |
| Operating profit | 52 | 57 |
| OPM % | 13% | 12% |
| Other Income | 46 | 9 |
| Depreciation | 4 | 4 |
| Profit Before tax | 93 | 62 |
| Profit After Tax | 76 | 48 |
| EPS | 120.83 | 65% |
COMPANY CONTACT INFORMATION:
Cheviot Company Limited
9th Floor, Magma House 24, Park Street,
Kolkata – 700016
Phone: +91 8232087911
Email: cheviot@chevjute.com
Website: https://www.groupcheviot.net/
CHEVIOT COMPANY LIMITE BUYBACK REGISTRAR:
Maheshwari Datamatics Pvt. Ltd
Maheshwari Datamatics Pvt. Ltd,
6, Mangoe Lane,
2nd Floor, Kolkata-700 001
Phone: 033 22435029 / 22482248
Email: mdpldc@yahoo.com
Website: http://www.mdpl.in
CHEVIOT COMPANY BUYBACK MANAGER:
LEAD MANAGER(S):
REGISTERED BROKER
EUREKA STOCK & SHARE BROKING SERVICES LIMITED
Email: care@eurekasec.com
