Gulf Oil Lubricants India Ltd is a subsidiary company and a part of Brand Gulf Oil International and the prestigious Hinduja Group. The company is a leading company in the sector of the Indian lubricants industry. The company is one of the fastest-growing companies in the sector of lubricants in the Automotive and industrial segments. The company’s clients are O.E.M.s and B2B customers in various industries such as Infrastructure, Mining, and transport. The companies to which Gulf Oil Lubricants cater their service are Ashok Leyland, Bharat Benz Whitmore, Mahindra, Schwing Stetter, M.A.N., Swaraj Volvo Penta, and Bajaj. In this article, we take a closer look at the Gulf Oil Lubricants Buyback details and its possible future prospects.
Gulf Oil Lubricants also has a fully-automated blending plant that has been located in Silvassa. The company also owns one lubricant plant in Ennore, Chennai. The company also carries out the business of trading, marketing, and manufacturing various automotive and non-automotive lubricants. The company has a wide distribution network of more than 70,000 retailers, including 300 auto retailers. It also includes 8,000 bike stops and another 2,000 car stops. The B2B business and the company’s industrial network include 200 direct industries exposure and 50 industrial distributors. The company’s major revenue is from the domestic market, where it earns 95%, while the remaining 5% is from exports.
OBJECTIVE OF THE BUYBACK OFFER:
The company stated that the necessity of the Buyback Issue aims at the following:
- The company’s policy is to distribute its surplus funds in favor of the shareholders and increase and improve the overall Return of the shareholders.
- To improve their financial ratios and other operational ratios such as Earnings per share (EPS), Return on Equity (R.O.E.), Return on Capital Employed (RoCE), and Return on assets (ROA).
GULF OIL LUBRICANTS INDIA LTD. BUYBACK DETAIL:
| Issue Period | From March 25, 2022 to April 7, 2022 |
| Security Name | Gulf Oil Lubricants India Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 0.14 crores equity shares |
| Issue Size (Amount) | Rs. 85.00 Crores |
| Buyback Price | Rs. 600 per equity share |
| Face Value of the Equity Share | Rs. 2 per equity share |
| Listing At | BSE, NSE |
| Buyback Offer Open Date | March 25, 2022 |
| Buyback Offer Closing Date | April 7, 2022 |
| Record Date for the offer | February 21, 2022 |
| Last Date for receipt of Tender Forms | April 7, 2022 |
| Finalisation of the Buyback Acceptance from the company | April 19, 2022 |
| Last Date for settlement of the bids | April 20, 2022 |
| Last Date for Extinguishment of Shares | April 26, 2022 |
BUYBACK RATIO:
| Category | Entitlement Ratio of Buyback | Entitlement Ratio (in %) |
| Reserved Category for the Small Shareholders of the company | 27 Equity Shares out of every 374 equity shares held as on the record date for the buyback offer. | 7.22 |
| General Category that is been eligible for all other Shareholders | 9 Equity Shares out of every 355 equity shares held as on the record date for the buyback offer. | 2.54 |
FINANCIAL PARAMETERS OF GULF OIL LUBRICANTS BUYBACK:
| Particulars IN Crores | March 2015 | March 2016 | March 2017 | March 2018 | March 2019 | March 2020 | March 2021 |
| Sales | 967 | 1,011 | 1,087 | 1,332 | 1,706 | 1,644 | 1,652 |
| Expenses | 838 | 852 | 909 | 1,097 | 1,423 | 1,357 | 1,387 |
| Operating Profit | 129 | 159 | 178 | 236 | 283 | 287 | 265 |
| OPM % | 13% | 16% | 16% | 18% | 17% | 17% | 16% |
| Other Income | 9 | 18 | 20 | 26 | 29 | 35 | 52 |
| Interest | 18 | 18 | 10 | 9 | 15 | 25 | 15 |
| Depreciation | 5 | 6 | 7 | 10 | 22 | 33 | 34 |
| Profit before tax | 116 | 153 | 181 | 243 | 275 | 265 | 269 |
| Tax % | 33% | 35% | 35% | 35% | 35% | 23% | 26% |
| Net Profit | 77 | 100 | 118 | 159 | 178 | 203 | 200 |
| EPS in Rs | 15.62 | 20.24 | 23.69 | 31.90 | 35.70 | 40.42 | 39.77 |
| Dividend Pay-outs % | 35% | 35% | 36% | 33% | 32% | 35% | 40% |
| Particulars | For the year ending with the amount in Millions as in Rs. | ||
| 31 March 2021 | 31 March 2020 | 31 March 2019 | |
| Total Income | 17,042.64 | 16,790.46 | 17,353.35 |
| Profit After Tax | 2,000.85 | 2,025.21 | 1,777.82 |
| Net Worth | 8,693.76 | 7,613.07 | 5,867.43 |
| Reserves and Surplus | 8,593.14 | 7,512.86 | 5,767.83 |
PROFIT FROM THE BUYBACK ON THE BASES OF ACCEPTANCE RATIO:
Buy 333 Shares for Rs. 494 (2,00,000/600=333)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount that is been Invested in Buyback | 1,64,502 | 1,64,502 | 1,64,502 | 1,64,502 |
| No. of Shares buyback | 109 | 166 | 249 | 333 |
| Buy-Back Profit | 11,554 | 17,596 | 26,394 | 35,298 |
| Profit | 7% | 10% | 16% | 21.4% |
MARKET REACTION GULF OIL LUBRICANTS BUYBACK:
The Gulf Oil Lubricants India Limited board recently approved the buyback proposal of the 14,16,667 fully paid-up equity shares of the company. This amount of equity represents around 9.8% of the paid-up equity capital of the company. The shareholders who hold the company’s shares viaPhysical Shares or Demat Shares are eligible for the buyback proposal as on the Record Date. The company registered a revenue increase of 24.9% on YoY with an increase in the company’s gross margin at the top line and the bottom line. However, the EBITDA and PAT of the company declined. As on current valuations, the C.M.P. of the stock is at 459.60, trailing at a discount of nearly 30.5 % from the Buyback price of Rs.600. On the announcement of the buyback proposal, the share price registered an increase of nearly 6.3%. Check Day by Day IPO Subscription Details (Live Status)
GULF OIL LUBRICANTS BUYBACK REGISTRAR:
KFin Technologies Private Limited
Selenium Tower B, Plot 31 & 32
Gachibowli Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032, Telangana
Phone: +91 40 6716 2222
Email: lic.ipo@kfintech.com
Website: www.kfintech.com.com
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GULF OIL LUBRICANTS BUYBACK LEAD MANAGERS:
- Motilal Oswal Investment Advisors Pvt Ltd
GULF OIL LUBRICANTS BUYBACK LEAD MANAGERS:
Gulf Oil Lubricants India Ltd
IN Centre, 49/50, 12th Road,
M.I.D.C Andheri (East) Mumbai, 400093
Phone: (+91) 22 6648 7777
Email: secretarial@gulfoil.co.in
Website: http://www.gulfoilindia.com/
Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
