Pennar Industries is a leading company in the business of engineering products with value added. The company also offers engineering, operational, and technical solutions to the industry. Pennar Industries has a strong market presence through its business vertical in many sectors, including Automobiles and Infrastructure, General Engineering Power, General Engineering, Power, Construction & Repair, Power, Power, Building, Power, Power and Power. Checkout Pennar Industries Limited Buyback 2022 price, size, buyback acceptance ratio and more details.
The Company was initially formed and inaugurated as Pennar Steels in Aug 1975. Pennar Industries Limited is a multi-location along with a multi-product company with a diversified product portfolio of more than 1000 high precision and accuracy-based engineering products. The Company also produces around 2500 tools that are used in their operation, engineering, and technical solutions. Pennar Industries has 9 manufacturing plants, and most of these are located in Tamil Nadu and Maharashtra. The Company started their engineering excellence in 1998. The Company’s first manufacturing plant was established in Isnapur, Hyderabad.
Pennar Industries, throughout its business operation journey, has been a firm with a focus on growth and many strategic acquisitions with CAPEX plans. The Company also planned to build up its industrial manufacturing plant in foreign countries. It will help the Company boost its growth and the expansion of the scalability of the Company’s business. The Company has been associated as a service provider to many big companies, such as:
| JSW | Ashok Leyland | NCC | Eicher | Voltas | P&G |
| Tata Group | IFB | Honda | Whirlpool | LG | BGR Energy |
| L&T | Mahindra | TVS | Toyota | HCC | Maruti Suzuki |
| Hyundai | MRF | NTPC | BHEL | BEML | DCM Shriram |
NECESSITY OF THE ISSUE:
The objective of the Buyback of the Company is:
- To improve the financial matrix of the Company, such as ROE, RoCE
- Reduction in the equity base of the Company
- Long term increase and wealth creation for the Shareholders
PENNAR INDUSTRIES LIMITED BUYBACK 2022 OFFER DETAILS:
| Buyback Type | Open Market Buyback |
| Buyback Record Date | Open Market Buyback, so no record date as for tendering process |
| Buyback Offer Amount | Rs. 40 Crores |
| Date of Board Meeting approving the proposal | 09 March, 2022 |
| Date of Public Announcement | 09 March, 2022 |
| Buyback Offer Size | 5.97% of the equity capital of the company |
| Buyback Number of Shares | —- equity shares of the company |
| Listing | NSE, BSE |
| Face Value | Rs. 5 |
| Buyback Price | Rs. 50 per equity share. |
| Buyback Opening Date | 23 March, 2022 |
| Buyback Closing Date | 22 September, 2022 |
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FINANCIAL TRENDS OF PENNAR INDUSTRIES LIMITED BUYBACK 2022:
| Particulars | For the year ending with the amount as in Rs. in Millions | ||
| 31 March 21 | 31 March 20 | 31 March 19 | |
| Total Income | 15,440.10 | 21,268.30 | 21,598.50 |
| Profit After Tax | 28.40 | 534.00 | 666.60 |
| Net Worth | 6,958.30 | 7,003.30 | 6,674.90 |
| Earnings Per Share (Rs) | 0.18 | 3.65 | -95.11 |
| CEPS (Rs) | 3.59 | 6.62 | -45.84 |
| DPS (Rs) | 0.00 | 0.00 | 0.00 |
| Book NAV/Share (Rs) | 48.95 | 48.22 | 1.51 |
| Tax Rate (%) | 22.19 | 15.40 | 44.11 |
| Core EBITDA Margin (%) | 6.09 | 8.03 | -24.16 |
| EBIT Margin (%) | 5.46 | 6.96 | -21.49 |
| Pre – Tax Margin (%) | 0.24 | 3.00 | -92.01 |
| PAT Margin (%) | 0.19 | 2.53 | -92.66 |
| Cash Profit Margin (%) | 3.34 | 4.57 | -26.79 |
| ROA (%) | 0.15 | 2.97 | -94.89 |
| ROE (%) | 0.41 | 7.81 | -94.79 |
| ROCE (%) | 6.87 | 12.99 | -47.08 |
| Asset Turnover (x) | 0.81 | 1.17 | -30.47 |
| Sales/Fixed Asset (x) | 1.69 | 2.68 | -36.97 |
| Working Capital/Sales (x) | 9.13 | 17.00 | -46.31 |
| Fixed Capital/Sales (x) | 0.59 | 0.37 | 58.66 |
| Receivable days | 98.48 | 74.48 | 32.22 |
| Inventory Days | 110.84 | 76.10 | 45.65 |
| Payable days | 100.54 | 75.04 | 33.98 |
| PER (x) | 90.95 | 3.83 | 2272.84 |
| PCE (x) | 4.53 | 2.11 | 114.30 |
| Price/Book (x) | 0.33 | 0.29 | 14.34 |
| Yield (%) | 0.00 | 0.00 | 0.00 |
| EV/Net Sales (x) | 0.50 | 0.28 | 76.04 |
| EV/Core EBITDA (x) | 6.78 | 3.13 | 116.45 |
| EV/EBIT (x) | 9.07 | 4.05 | 124.23 |
| EV/CE (x) | 0.40 | 0.32 | 24.83 |
| M Cap / Sales | 0.15 | 0.10 | 56.90 |
| Net Sales Growth (%) | -27.59 | -1.25 | -2115.84 |
| Core EBITDA Growth (%) | -41.11 | -5.26 | -681.23 |
| EBIT Growth (%) | -43.15 | -14.79 | -191.68 |
| PAT Growth (%) | -94.68 | -19.89 | -375.98 |
| EPS Growth (%) | -95.11 | -16.24 | -485.67 |
| Total Debt/Equity (x) | 0.83 | 0.64 | 30.08 |
| Current Ratio (x) | 1.16 | 1.13 | 3.30 |
| Quick Ratio (x) | 0.69 | 0.68 | 1.47 |
| Interest Cover (x) | 1.05 | 1.76 | -40.46 |
| Total Debt/Market cap (x) | 2.51 | 2.20 | 14.34 |
PENNAR INDUSTRIES BUYBACK CALCULATION OF ACCEPTANCE RATIO:
The calculation for the buyback offer has been done considering that the investor buys 4000 equity shares of the Company at a market price of Rs. 36.50.
The calculation will be in terms of Rs.2,00,000 / 50 buyback price = 4000 shares.
The amount invested will be in terms of 4000 * Rs. 36.50 = Rs. 146,000
| Acceptance Ratio | Investment | Shares Buyback | Profit |
| 33% | Rs. 146,000 | 1320 | ₹17,820 |
| 50% | Rs. 146,000 | 2000 | ₹27,000 |
| 75% | Rs. 146,000 | 3000 | ₹40,500 |
| 100% | Rs. 146,000 | 4000 | ₹54,000 |
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MARKET SUBJECT:
The Board of the Company has approved the proposal to buy around 5.97 per cent of the Company’s equity shares. The buyback is Rs. 40 crores at Rs. 50 per equity share of the Company. The buyback offers stated by the Company are payable in cash, representing 5.97 % of the total paid-up equity share capital and 5.93 % of the free reserves of the Company. On the day of the event’s announcement, the shares of the Company rose to nearly 3.42 per cent to end with a closing price of Rs. 36.30. Stock of the Company also reached a record high of Rs. 37.50 with an intraday low at Rs. 35.60. In the past year, the stock price of the Company has risen by around 12%.
The company board has not stated any minimum purchase requirements and conditions in their open market-based buyback. The Company stated that the Company will increase the size of its equity shares if they are bought back at a price well below their buyback price. As of the most recent shareholding pattern, the Company’s promoters hold 37.71 percent, while institutional players have a mere 0.23 percent. The retail investors are the Company’s majority shareholders as they hold 51.65 per cent of the Company’s equity.
- Open: Rs. 39.5
- High – Low: Rs. 40 – Rs. 39
- Previous Close: Rs. 40.3
- Total Traded Value: 683661
- Close: Rs. 39.1
Chane of: -Rs. 1.20 (-2.98%)
Check out the complete Buyback 2022 details here.
COMPANY CONTACT ADDRESS:
3 Floor, DHFLVC Silicon Towers, Kondapur,
Hyderabad – 500 084
Phone: +91 40 41923108
Email: corporatecommunications@pennarindia.com
Website: http://www.pennarindia.com
PENNAR INDUSTRIES BUYBACK ISSUE REGISTRAR:
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: pil.buyback@kfintech.com
Website: https://karisma.kfintech.com/
PENNAR INDUSTRIES BUYBACK LEAD MANAGER(S):
- Finshore Management Services Limited
