K.P.R. Mills Limited is a diversified and one of the largest vertically integrated companies present in the Indian Stock Market. K.P.R. Mills has been engaged in Textiles’ manufacturing and business operations, including Yarn, Fabrics, and Readymade Garments. It is also involved in the Sugar sector and chemical production with the facility of White Crystal Sugar and Ethanol manufacturing. It has been ranked in the top 500 companies of the country due to its excellent business operations. The company has been in the business for four decades and is carrying on another integration of engineering service in their core business setup and business model. In this article, we take a closer look at the KPR Mill Limited Buyback Details and its possible future prospects.
K.P.R. Mills Limited also manufactures customized and unique customer-focused products on domestic and global levels. The company is well known for its quality standards and delivery execution. The company has also established a wind power generation facility in the energy sector. Through its engineering division, it produces some auto ancillaries’ components also. The primary source of revenue for the company is yarn and fabric, which dominates around 42% of its total revenue. Another 42% of the total revenue has been accounted for via garments. It drives 12% of its total revenue from Sugar and ethanol, and the remaining 4% has been accounted for via its other income streams. KPR Mill has an established share in the domestic market, accounting for 65%of their revenue, while the 35% remaining is from their International Sales. The company exports to more than 60 countries with a significant share in the U.S.A., U.K., Australia, and China.
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).
KPR MILL BUYBACK DETAIL:
The company stated that the buyback offer of the equity shares would be a Tender Offer as per the Buyback Regulations been 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. Check Day by Day IPO Subscription Details (Live Status)
| Issue Period | From March 25, 2022, to April 7, 2022 |
| Security Name | K.P.R. Mill limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 22,36,000 equity shares of the company |
| Issue Size (Amount) | Rs. 180.00 Crores |
| Buyback Price | Rs. 805 per equity share |
| Face Value | Rs. 1 per equity share |
| Listing At | BSE, NSE |
| Buyback Offer Open Date | March 25, 2022 |
| Buyback Offer Close Date | April 7, 2022 |
| Record Date for the offer | February 19, 2022 |
| Last Date for receipt of Tender Forms | April 9, 2022 |
| Finalization of the Buyback Acceptance from the company | April 18, 2022 |
| Last Date for settlement of the bids | April 19, 2022 |
| Last Date for Extinguishment of equity shares | April 26, 2022 |
KPR MILL LIMITED BUYBACK RATIO:
| Category | Entitlement Ratio of Buyback |
| Reserved Category for the Small Shareholders of the company | 1 Equity Shares out of every 16 fully paid-up equity shares held as on the record date for the buyback offer. |
| General Category that is eligible for all other Shareholders | 5 Equity Shares out of every 891fully paid-up equity shares held as on the record date for the buyback offer. |
FINANCIAL TRENDS:
| Particulars in Crores | 2021 | 2020 | 2019 |
| Sales | 3,530 | 3,353 | 3,384 |
| Expense | 2,701 | 2,731 | 2,772 |
| Operating Profit | 830 | 622 | 612 |
| OPM% | 24% | 19% | 18% |
| Other Income | 39 | 36 | 37 |
| Interest | 33 | 50 | 49 |
| Depreciation | 147 | 137 | 131 |
| Profit before tax | 689 | 472 | 469 |
| Tax % | 25% | 20% | 29% |
| Net Profit | 515 | 377 | 335 |
| EPS | 15 | 10.95 | 9.23 |
| Particulars | For the year ending with the amount in Rs. as in Crores | ||
| 31 March 21 | 31 March 20 | 31 March 19 | |
| Total Income | 2,991.60 | 2,934.53 | 3,015.90 |
| Profit After Tax | 432.62 | 294.61 | 289.11 |
| Net Worth | 1,906.54 | 1,504.88 | 1,511.20 |
| Reserves and Surplus | 1,872.13 | 1,470.47 | 1,474.92 |
KPR MILL LIMITED BUYBACK MARKET REACTION:
The company proposed the buyback offer of the 22,36,000 equity shares of the company, where the offered size is Rs 179.99 crore. The total buyback equity shares account for 9.53% of the company’s total fully paid-up equity capital base. The buyback price per equity share at Rs. 805 is currently trading at a 26.72% premium to the C.M.P. of the stock. Currently, the stock is trading at Rs. 631.80 and registered a positive closing with 2.54%. Due to the tension created by the rise in inflation and the global disruption amidst the Russia- Ukraine War, the stock has gone some correction. Earlier, the stock registered a higher price of Rs. 769.2 on NSE in January, with the average price being calculated in January to be around Rs. 709.35
PRE-BUYBACK SHAREHOLDING PATTERN OF KPR MILL:
| Particulars | No. of Share Holders | No. of equity shares | % Of the equity shares |
| Promoters | 8 | 25,70,65,255 | 74.72 |
| DIIs/MFs | 19 | 4,47,13,593 | 13.00 |
| FIIs/FPIs/NRIs | 162 | 1,23,01,066 | 3.58 |
| Resident Individuals (<INR2,00,000) | 93,037 | 2,03,01,324 | 5.90 |
| NRI | 1,178 | 9,78,079 | 0.28 |
| Clearing Members | 99 | 1,45,047 | 0.04 |
| Bodies corporate | 458 | 18,35,804 | 0.53 |
| Grand Total | 95,536 | 34,40,50,000 | 100.00 |
ACCEPTANCE RATIO AND PROFIT:
Considering if we buy 248 equity shares of the company at price of Rs. 650, the invested amount will be Rs. 1,61,200.
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | Rs. 1,61,200 | Rs. 1,61,200 | Rs. 1,61,200 | Rs. 1,61,200 |
| No. of Shares buyback | 81 | 124 | 186 | 248 |
| Buyback Profit | Rs. 12,555 | Rs. 19,096 | Rs. 28,644 | Rs. 38,192 |
| Profit | 7.77% | 11.84% | 17.76% | 23.26% |
Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
COMPANY CONTACT INFORMATION:
K.P.R. Mill limited
No. 9, Gokul Buildings,
A.K.S. Nagar, Thadagam Road,
Coimbatore – 641 001, India
Phone: 0422-2207777
Email: investors@kprmill.com
Website: https://kprmilllimited.com/
K.P.R MILL BUYBACK REGISTRAR:
KFintech Private Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: kpr.buyback@kfintech.com
Website: https://karisma.kfintech.com/
K.P.R MILL BUYBACK MANAGER:
LEAD MANAGER(S):
IDBI Capital Market Services Limited
REGISTERED BROKER:
IDBI Capital Markets & Securities Limited
Email: charushila.parkar@idbicapital.com
