MOIL Buyback Details[2022]

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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 PeriodFrom January 28 January 28, 2022, to February 10 February 10, 2022
Security NameMOIL Limited
Issue TypeTender Offer
Issue Size in terms of Equity Shares3.38 Crores Equity Shares
Issue Size in terms of Amount in Rs.Rs. 693.77 Crores
Buyback PriceRs. 205 per Equity Share
Face ValueRs. 10 per share
Listing AtBSE, NSE
Buyback Offer Open DateJanuary 28, 2022
Buyback Offer Closing DateFebruary 10, 2022
Record Date for the OfferDecember 31, 2021
Last Date for receipt of Tender FormsFebruary 12, 2022
Finalisation of Buyback Acceptance from the companyFebruary 18, 2022
Last Date for settlement of the bidsFebruary 21, 2022
Last Date for Extinguishment of SharesFebruary 28, 2022

MOIL BUYBACK RATIO

CategoryEntitlement Ratio of Buyback
Reserved Category for the Small Shareholders of the company123 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 Shareholders99 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 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021
Sales6329781,3141,4381,0341,172
Expenses562679781842779885
Operating Profit71298533596256287
OPM %11%31%41%41%25%24%
Other Income25222117819118152
Interest030000
Depreciation525562679699
Profit before tax270462648720340240

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
Websitehttp://www.bigshareonline.com

MOIL BUYBACK MANAGER:

LEAD MANAGER(S):

REGISTERED BROKER:

IDBI Capital Markets & Securities Limited
Email: charushila.parkar@idbicapital.com

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