MOIL Buyback 2021

MOIL was originally set up in the year 1896 as Central Province Prospecting Syndicate which was later renamed as Central Provinces Manganese Ore Company Limited (CPMO), a British Company incorporated in the UK. In 1962, as a result of an agreement between the Government of India and CPMO, the assets of the latter were taken over by the Government and MOIL was formed with 51% capital held between the Govt. of India and the State Governments of Maharashtra and Madhya Pradesh and the balance 49% by CPMO. It was in 1977, the balance 49% shareholding was acquired from CPMO and MOIL became a 100% Government Company under the administrative control of the Ministry of Steel. MOIL Ltd(BSE: 533286 | NSE: MOIL ) Board has approved a proposal for buyback of up to 87.66 lakh shares at Rs 240 per share, aggregating Rs 210.4 cr which is 3.29% of a total number of paid-up equity shares. FacebookTwitterShare Buy Back Offer Deal: Buyback Type: Tender Offer Buyback Record Date: Dec 31 2021 Buyback Opening Date: Jan 28 2022 Buyback Closing Date: Feb 10 2022 Buyback Offer Amount: ₹ 693 Crores Date of Board Meeting approving the proposal: Nov 10 2021 Date of Public Announcement: Nov 10 2021 Buyback Offer Size: 14.23% Buyback Number of Shares: 33,804,878 Price Type: Tender offer FV: 10 Buyback Price: ₹ 205 Per Equity Share Letter for Offer Link Details of Buyback: Board has approved the proposal to buyback MOIL of not exceeding 3,38,42,668 equity shares of face value of Rs.10/- each of the Company (representing 14.26% of the total number of fully paid-up equity shares in the paid-up share capital of the Company) at a price of Rs.205/- per equity share (the “Buyback Offer Price”) payable in cash for an aggregate consideration not exceeding Rs. 693 Crores (the “Buyback Offer Size”), being 25% of the aggregate of fully paid-up share capital and free-reserves. How to Participate in buyback? 1. Firstly to be eligible for the buyback the investor should have shares of MOIL Buyback 2021 in demat or physical form as on record date [31.12.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [28.01.2022 to 10.02.2022] by selling your shares through your broker on NSE or BSE. 3. Then on [21.02.2022] the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account. Profit from the buyback on the bases of acceptance Ratio: Buy 975 Share at CMP of Rs.177 [2,00,000/205=975) Acceptance Ratio 33% 50% 75% 100% Amount Invested in Buyback 1,72,682 1,72,682 1,72,682 1,72,682 No. of Shares buyback 321 487 731 975 BuyBack Profit 8988 13636 20468 27300 Profit% 6.29% 7.89% 11.8% 15.8% Recommendation: Review and Recommendation of MOIL Buyback 2021 by IZ team is: 6/10 Size of buyback is 693 Crores and total shares reserved for retail clients are ~50 lac. So, expected AR in Retail is around 30-40%. However, this figure will increase as price moves towards buyback price.