James Warren Tea is a company engaged in the business of growing, selling, harvesting, and manufacturing tea products. The Company currently has a total of 6 tea estates that have been situated in diversified locations in the state of Assam. The Company has been engaged in production at the facility of the Balijan Tea Estate, Deamoolie Tea Estate, Dhoedaam Tea Estate, and the Rajah Alli Tea Estate. The Company also carries out the production and manufacturing at the Thowra Tea Estate and the Zaloni Tea Estate. The companies own nearly 4000 Hectares. The Company is also engaged in a strong quality control process and a wide distribution and supply network to the country’s major cities.
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 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).
JAMES WARREN TEA BUYBACK DETAIL:
| Issue Period | From Feb 23, 2022 to March 9, 2022 |
| Security Name | James Warren Tea Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 0.08 Crores equity shares |
| Issue Size (Amount) | Rs. 24.86 Crores |
| Buyback Price | Rs. 295 per equity share |
| Face Value of the Equity Share | Rs. 10 per equity share |
| Listing At | BSE, NSE |
| Buyback Offer Open Date | February 23, 2022 |
| Buyback Offer Closing Date | March 09, 2022 |
| Record Date for the offer | January 14, 2022 |
| Last Date for receipt of Tender Forms | March 11, 2022 |
| Finalisation of the Buyback Acceptance from the company | March 21, 2022 |
| Last Date for settlement of the bids | March 21, 2022 |
| Last Date for Extinguishment of Shares | March 30, 2022 |
BUYBACK RATIO:
| Category | Entitlement Ratio of Buyback |
| Reserved Category for the Small Shareholders of the company | 103 Equity Shares out of every 602 equity shares held as on the record date for the buyback offer. |
| General Category that is been eligible for all other Shareholders | 38 Equity Shares out of every 239 equity shares held as on the record date for the buyback offer. |
FINANCIAL PARAMETERS:
| Parameter | Pre-Buy Back | Post-Buy Back | ||
| Standalone | Consolidated | Standalone | Consolidated | |
| Net worth as in Rs. in lakhs) | 12130.19 | 12124.10 | 9456.44 | 9450.35 |
| Return on net worth (%) | 19.17 | 19.16 | 24.60 | 24.58 |
| Earnings per Share as in Rs. | 18.76 | 18.73 | 25.01 | 24.97 |
| Book value per Share as in Rs. | 130.42 | 130.36 | 135.56 | 135.47 |
| Price/earnings Ratio | 5.96 | 5.97 | 4.47 | 4.48 |
| Total debt / equity ratio | – | – | – | – |
| Particulars | For the year ending with the amount in Rs. as in Millions | ||
| 31 March 21 | 31 March 20 | 31 March 19 | |
| Total Income | 1,339.76 | 1,457.94 | 1,489.75 |
| Profit After Tax | 289.60 | 30.08 | 40.32 |
| Net Worth | 921.27 | 860.99 | 1078.92 |
| Key Financials | 9 months period ended December 31, 2018 (Audited figures) | Year ended 31 March, 2018 (Audited figures) |
| Revenue from Operations | 13407.80 | 11610.28 |
| Other Income | 113.73 | 499.75 |
| Total Revenue | 13521.53 | 12110.03 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 10958.12 | 12171.46 |
| Finance Cost | – | – |
| Depreciation and Amortization | 241.60 | 311.63 |
| Exceptional Items | 0.00 | 25.01 |
| Profit/(Loss) before Tax | 2321.81 | (348.05) |
| Tax Expenses (including Deferred tax) | 577.39 | (94.93) |
| Net Profit/(Loss) after Tax | 1744.42 | (253.12) |
| Profit/(Loss) for proportionate shares in | (2.44) | (1.73) |
| Joint Venture | ||
| Profit / (Loss) for the period | 1741.98 | (254.85) |
| Paid Up Share Capital | 930.08 | 930.08 |
| Other Equity^^ | 11194.02 | 9493.59 |
| Net Worth | 12124.10 | 10423.67 |
| Total debt | 0.00 | 0.00 |
MARKET REACTION ON BUYBACK:
At the current valuations, the CMP of the stock is 246.50, and the Buyback price of the Company is Rs. 295.0, which is trailing at the premium of 19.60%. The Buyback offer of the Company is 8,42,717 fully paid-up equity shares Company. It constitutes around 16.07% of the total number of equity shares of the Company. On the day the Company announced the buyback of its shares, its stock price was trailing at Rs. 254. The Company recorded a high volume as par from the average volume, where the volume stood around 13018. The Company also stated that the board members, along with the promoters, will also participate in tendering their equity to the Company through the buyback proposal.
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The Company stated that the Company had calculated the buyback offer price by considering multiple factors, including average volume and weighted average prices of the stock of the Company. The Company also stated that they considered the Company’s net worth along with various important ratios such as the Price Earnings ratio and impact on EPS and other financial terms. The buyback will lead to a reduction in the Company’s equity base that will lead to an increase in the value creation of the shareholders of the Company and pursues the Company to carry out growth along with the creation of opportunities. The Company’s stock price was registered close to the buyback price in the recent quarter, around Rs. 284.85 on NSE
JAMES WARREN TEA LIMITED CONTACT DETAILS:
James Warren Tea Limited
CIN: L15491AS2009PLC009345
Registered Office:
Dhoedaam Tea Estate, P.O. Borahapjan, Dist. Tinsukia, Assam – 786 150
Corporate Office
Aspirations Vintage, 12 Pretoria Street, Kolkata- 700 071
Tel. No.: +91 033 4034 1000, Fax: +91 033 4034 1015
E-mail: investors@jameswarrentea.com;
Website: www.jameswarrentea.com
JAMES WARREN TEA 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
JAMES WARREN TEA BUYBACK MANAGER:
LEAD MANAGER(S):Fedex Securities Limited
