Filatex India Limited is a company engaged in the business activity of manufacturing the Polyester Filament Yarn. The company is also engaged in the manufacturing of the products like Monofilament Yarns used for Zippers, Tooth Brush Bristles, Polypropylene Yarn, Narrow Woven Fabrics and Forming Fabrics. Let’s delve into the key metrics of Filatex India Limited Buyback.
For carrying out their business production, the company built a 6000 Tons Per annum capacity manufacturing plant in Dadra & Nagar haveli. The plant has been built-in 1996. The plant initially started with a large-scale manufacturing capacity in polyester multifilament yarns. The machines installed were such that it could carry out the production of 600 tonnes per day. The plant also produced around 260 tonnes per day of POY. The company also set up a new manufacturing facility at Dahej in 2012. The regional office of the company is located in Maharashtra and Gujarat. Checkout Filatex buyback price, size, buyback acceptance ratio and more details.
OBJECTIVE OF THE 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 favour 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).
FILATEX INDIA LIMITED BUYBACK DETAIL:
The company stated that the buyback offer of the equity shares would be a Tender Offer as per the Buyback Regulations stated by the company and guidelines of SEBI. It also stated that the reservation of the small shareholders would be defined as per the Buy-back Regulations.
The company board recently approved the proposal of a buyback of 42,50,000 equity shares of the company for Rs. 140 for every equity share. The company stated that its buyback offer would be around 1.89% of the company’s total fully paid-up equity capital base. The buyback offer of the company is a Tender Offer.
Check out the complete Buyback 2022 details
| Issue Period | From May 9, 2022, to May 23, 2022 |
| Security Name | Filatex India Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 42,50,000 equity shares |
| Issue Size (Amount) | Rs. 59.50 Crores |
| Buyback Price | Rs. 140 per equity share |
| Face Value of the Equity Share | Rs. 2 per equity share |
| Listing At | BSE, NSE |
| Record Date for the offer | April 8, 2022 |
| Last Date for receipt of Tender Forms | May 23, 2022 |
| Finalisation of the Buyback Acceptance from the company | May 27, 2022 |
| Last Date for settlement of the bids | June 1, 2022 |
| Last Date for Extinguishment of Shares | June 8, 2022 |
FILATEX INDIA LIMITED BUYBACK RATIO:
| Category | Entitlement Ratio of Buyback |
| Reserved Category for the Small Shareholders of the company | 23 Equity Shares out of every 226 equity shares held as of the record date for the buyback offer. |
| General Category that is been eligible for all other Shareholders | 8 Equity Shares out of every 485 equity shares held as of the record date for the buyback offer. |
FINANCIAL TRENDS OF THE COMPANY:
| Particulars | For the year ending with the amount as in Rs. in Lakhs | ||
| 31 March 21 | 31 March 20 | 31 March 19 | |
| Total Income | 2,23,660.74 | 2,79,448.95 | 2,88,588.53 |
| Profit After Tax | 16,583.32 | 12,147.04 | 8,484.60 |
| Net Worth | 68,976.87 | 52,272.04 | 39,934.67 |
| Reserves and Surplus | 64,560.51 | 47,878.34 | 35,584.67 |
| PARAMETER | MARCH 21 | MARCH 20 | YoY % |
| Earnings Per Share (Rs) | 3.91 | 13.73 | -71.55 |
| CEPS (Rs) | 5.97 | 4.16 | 43.49 |
| DPS (Rs) | 0.00 | 0.00 | 0.00 |
| Book NAV/Share (Rs) | 21.60 | 88.45 | -75.58 |
| Tax Rate (%) | 35.18 | 35.54 | -1.00 |
| Core EBITDA Margin (%) | 7.54 | 7.93 | -4.92 |
| EBIT Margin (%) | 6.46 | 6.93 | -6.68 |
| Pre – Tax Margin (%) | 4.56 | 4.69 | -2.82 |
| PAT Margin (%) | 2.96 | 3.03 | -2.28 |
| Cash Profit Margin (%) | 4.52 | 4.59 | -1.43 |
| ROA (%) | 5.96 | 4.79 | 24.49 |
| ROE (%) | 19.89 | 16.84 | 18.10 |
| ROCE (%) | 17.11 | 13.99 | 22.26 |
| Asset Turnover (x) | 2.01 | 1.58 | 27.40 |
| Sales/Fixed Asset (x) | 2.87 | 2.40 | 19.45 |
| Working Capital/Sales (x) | 99.69 | 51.72 | 92.74 |
| Fixed Capital/Sales (x) | 0.35 | 0.42 | -16.29 |
| Receivable days | 17.10 | 34.20 | -50.01 |
| Inventory Days | 23.27 | 31.69 | -26.58 |
| Payable days | 7.39 | 11.11 | -33.46 |
| PER (x) | 13.62 | 2.37 | 474.52 |
| PCE (x) | 8.90 | 7.82 | 13.91 |
| Price/Book (x) | 2.46 | 1.84 | 33.88 |
| EV/Net Sales (x) | 0.60 | 0.72 | -17.35 |
| EV/Core EBITDA (x) | 7.52 | 8.31 | -9.58 |
| EV/EBIT (x) | 9.24 | 10.19 | -9.28 |
| EV/CE (x) | 1.21 | 0.97 | 25.15 |
| M Cap / Sales | 0.40 | 0.37 | 9.62 |
| Net Sales Growth (%) | 49.10 | 24.28 | 102.24 |
| Core EBITDA Growth (%) | 36.29 | 15.35 | 136.47 |
| EBIT Growth (%) | 35.84 | 21.16 | 69.40 |
| PAT Growth (%) | 42.24 | 47.44 | -10.95 |
| EPS Growth (%) | -71.55 | 47.44 | -250.84 |
| Total Debt/Equity (x) | 1.29 | 1.85 | -30.39 |
| Current Ratio (x) | 1.08 | 1.09 | -0.84 |
| Quick Ratio (x) | 0.61 | 0.64 | -5.35 |
| Interest Cover (x) | 3.40 | 3.10 | 9.52 |
| Total Debt/Market capitalization (x) | 0.52 | 1.00 | -48.01 |
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VALUATIONS OF THE COMPANY:
- Market Cap of the company = Rs. 2495.94 Crores
- Earnings Per Share as on TTM basis = Rs.15.21
- Price To Earnings (P/E) Ratio = 7.29
- Book Value Per Equity Share of the company = Rs. 44.71
- Price/Book as on MRQ basis = 2.48
- Price/Earnings as on TTM basis = 6.17
- ROCE (%) = 22.43
- PAT Margin = 7.38
- Dividend Yield = 0.36
WORKING CALCULATION OF PROFIT AS PER THE ACCEPTANCE RATIO:
| The maximum market value of a shareholder that is eligible for a buyback offer as on the record date | Rs 2,00,000 |
| The company has decided on the buyback price | Rs. 140 |
| Maximum shares for small shareholders as per the buyback price (2,00,000/140) 1,428 equity shares of the company | 1,428 equity shares of the company |
| The closing price of the stock for consideration of the profit from the buyback | R126.75 |
| Maximum amount invested in buyback as per the closing price above considered (126.75 x 1,428 shares) | Rs. 1,80,999 |
The profit that can be from Filatex Buyback as per the Acceptance Ratio:
| Acceptance ratio | Amount invested in the buyback | No. of shares bought back | Buyback Profit | Profit in % |
| 33% | 1,80,999 | 476 | 6,307 | 3.48 |
| 50% | 1,80,999 | 714 | 9,460 | 5.23 |
| 75% | 1,80,999 | 1,071 | 14,190 | 7.84 |
MARKET REACTION ON FILATEX INDIA LIMITED BUYBACK:
Currently, the stock is trading at Rs. 113.95 and registered a positive closing with 0.57%. Due to the tension created by the rise in inflation, rise in the RRP and CRR by the RBI, and staggering financials amidst the Russia- Ukraine War, the stock has gone through a significant correction from the top. The stock is currently trailing in a consolidation zone despite the fear in the market. Earlier, the stock registered a higher price of Rs. 129. 35 on NSE in February, with the average price calculated in January at around Rs. 120.46. The stock is currently trailing at a discount from its Buyback Offer Price as per the current market price. The buyback offer at full acceptance is at a premium of Rs. 26 or nearly 21% of the Buyback Price offered by the company.
COMPANY ADDRESS:
Filatex India Limited
43, Community Centre,
New Friends Colony,
New Delhi – 110025 (INDIA)
Phone: 91-11-26312503, 91-11-26848633, 91-11-26848644
Fax: 91-11-26849915
Website: www.filatex.com
REGISTRAR OF THE FILATEX INDIA LIMITED BUYBACK:
MCS Share Transfer Agent Limited
F-65, Okhla Industrial Area, Phase – I, New Delhi, Delhi – 110020
Tel: +011-41406148/49/52;
Fax: +011-41709881
Contact Person: Mr. Amarjit
Email: admin@mcsregistrars.com
Website: www.mcsregistrars.com
MANAGER OF THE BUYBACK:
Corporate Professionals Capital Private Limited
D-28, South Extension Part-1, New Delhi-110049
Tel: 011-40622230/ 40622251/ 40622209;
Contact person: Ms. Anjali Aggarwal,
Email: mb@indiacp.com
Website: www.corporateprofessionals.com
REGISTERED BROKER
- SMC Global Securities Limited
Email: nishant.ag@smcindiaonline.com
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