MOIL, also known as the Manganese Ore (India) Limited, is a Schedule “A” company. It is a Miniratna Category-I Government Undertaking Company. MOIL has its root existence from the year 1896. Initially, back then, it was set up as Central Province Prospecting Syndicate. It was later renamed CPMO, Central Provinces Manganese Ore Company Limited under the British Government. In 1962, an agreement was sanctioned between the Government of India and the CPMO for the acquisition of the assets of the company. The company transferred its 51% stake to the Joint Venture Government of India and the State Governments of Madhya Pradesh and Maharashtra. In 1977, the Government of India acquired the remaining 49% stake of the company and thus, it became an entire Government Undertaken Enterprise. The administrative control of the company is under the Ministry of Steel. In this article, we take a closer look at the MOIL Buyback details and its possible future prospects.
MOIL is engaged in the production and sales of different grades of Manganese ores such as:
- High-Grade ores for Ferromanganese production medium grade ore for Silicomanganese production
- Blast furnace grade ore for hot metal production
- Dioxide for dry battery cells and chemical industries.
MOIL currently operates 11 manganese mines, out of which seven are located in Maharashtra and the remaining 4 in Madhya Pradesh. MOIL production capacity is such that it accounts for 50% of the country’s total dioxide and manganese ore requirement.
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 favour 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 (ROE), Return on Capital Employed (RoCE), and Return on assets (ROA).
- To effectively use the available cash the company holds.
MOIL BUYBACK DETAILS:
| Issue Period | From January 28 January 28, 2022, to February 10 February 10, 2022 |
| Security Name | MOIL Limited |
| Issue Type | Tender Offer |
| Issue Size in terms of Equity Shares | 3.38 Crores Equity Shares |
| Issue Size in terms of Amount in Rs. | Rs. 693.77 Crores |
| Buyback Price | Rs. 205 per Equity Share |
| Face Value | Rs. 10 per share |
| Listing At | BSE, NSE |
| Buyback Offer Open Date | January 28, 2022 |
| Buyback Offer Closing Date | February 10, 2022 |
| Record Date for the Offer | December 31, 2021 |
| Last Date for receipt of Tender Forms | February 12, 2022 |
| Finalisation of Buyback Acceptance from the company | February 18, 2022 |
| Last Date for settlement of the bids | February 21, 2022 |
| Last Date for Extinguishment of Shares | February 28, 2022 |
MOIL BUYBACK RATIO
| Category | Entitlement Ratio of Buyback |
| Reserved Category for the Small Shareholders of the company | 123 Equity Shares out of every 625 equity shares held as on the record date for the buyback offer. |
| General Category that is been eligible for all other Shareholders | 99 Equity Shares out of every 728 equity shares held as on the record date for the buyback offer. |
MARKET REACTION ON THE BUYBACK:
The Board of the MOIL Company approved the proposal of the equity share buyback via a tender offer from the open market. The board addressed that the buyback is of 3.38 crore equity shares. This Buyback offer is Rs. 693.775 crores. The company further stated that a total of 50,76,400 shares would be reserved under the retail category from the offer. At the current valuation and the CMP of the MOIL, the buyback offer is at a premium of nearly 9%.
On the day of the announcement of the buyback offer, the stock price was nearly flat as it ended the day with a loss of nearly 0.6%. MOIL has recorded a 52-week high of Rs. 208 that, is by the Buyback offer price of Rs.205. the stock price of the MOIL shares has surged nearly 20% this year on a Year-to-Date basis and nearly 30% on a Year-to-Year basis. The company further stated that the buyback offer represents about 14.26% of the total equity shares in the form of the paid-up share capital. The offer price of Rs.205 per equity share, which sums up to Rs.693 Crores, is being 24.8% of the aggregate of the free reserves and fully paid-up share capital. The buyback proposal was subject to approval from the shareholders of the company. It was through the postal ballot process. Check Day by Day IPO Subscription Details (Live Status)
FINANCIAL PARAMETERS OF THE COMPANY:
| Particulars in Crores (Rs.) | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
| Sales | 632 | 978 | 1,314 | 1,438 | 1,034 | 1,172 |
| Expenses | 562 | 679 | 781 | 842 | 779 | 885 |
| Operating Profit | 71 | 298 | 533 | 596 | 256 | 287 |
| OPM % | 11% | 31% | 41% | 41% | 25% | 24% |
| Other Income | 252 | 221 | 178 | 191 | 181 | 52 |
| Interest | 0 | 3 | 0 | 0 | 0 | 0 |
| Depreciation | 52 | 55 | 62 | 67 | 96 | 99 |
| Profit before tax | 270 | 462 | 648 | 720 | 340 | 240 |
COMPANY CONTACT INFORMATION:
MOIL Limited
MOIL Bhawan, Katol Road 1A
Nagpur – 440013
Maharashtra
Phone: +91 712 2806208
Email: compliance@moil.nic.in
Website: https://www.moil.nic.in/
MOIL BUYBACK REGISTRAR:
Bigshare Services Private Limited
1st Floor at Bharat Tin Works Building
Opposite to Vasant Oasis
Makwana Road
Marol, Andheri East
Mumbai – 400 059
Phone: +91-22-6263 8200
Email: moilbuyback@bigshareonline.com
Website: http://www.bigshareonline.com
MOIL BUYBACK MANAGER:
LEAD MANAGER(S):
REGISTERED BROKER:
IDBI Capital Markets & Securities Limited
Email: charushila.parkar@idbicapital.com
