CDGS stock sets record date for ₹32.76 Cr share buyback at a premium of 53%
With a market worth of ₹2,195.59 Cr, Tips Industries Ltd. is a small-cap company that engages in the consumer discretionary industry. One of the largest corporate houses in the music and entertainment industries is the company. The company announced a share buyback in November for ₹32.76 crore. In order to buyback up to 1,26,000 fully paid-up equity shares with a face value of Rs. 10 each, or up to 0.97% of all fully paid-up equity shares, the company set a price of ₹2,600 per share. The offer size of the buyback constitutes 24.59% of the aggregate of the paid-up equity share capital and free reserves of the company, and represents 0.97% of the total issued and paid-up equity share capital of the company. At the current market price, the buyback price represents a premium of 53.57% over the closing price of the stock on BSE on Friday.
The company has said in a stock exchange filing that “Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 9(i) of SEBI (Buy-Back of Securities) Regulations, 2018, as amended, the Company has fixed Friday, December 30, 2022 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who shall be eligible to participate in the Buyback.”
On November 9, the company informed stock exchange filings that its Board of Directors has approved “buyback by the Company of up to 1,26,000 (One Lakh Twenty Six Thousand) fully paid-up equity shares of face value of Rs. 10/- (Rupees Ten only) each of the Company (“Equity Shares”) representing up to 0.97% of the total issued and paid-up Equity Share capital of the Company at a price of Rs. 2,600/- (Rupees Two Thousand Six Hundred only) per Equity Share (“Buyback Price”) payable in cash for an aggregate amount of up to Rs. 32,76,00,000/- (Rupees Thirty Two Crores Seventy Six Lakhs Only) (“Buyback Size”), which is 24.59% of the aggregate of the fully paid-up Equity Share capital and free reserves as per the audited financial statement of the Company for the period ended September 30, 2022.”
On Friday the shares of Tips Industries closed on the BSE at ₹1693 apiece, down by 5.67% from the previous close of ₹1794.75. The stock recorded a total volume of 3,817 shares compared to the 20-Day average volume of 1,494 shares. The stock has appreciated by 1300% over the past five years, and by over 1800% over the past three years. The stock has lost 1.34 percent over the past year, and it has dropped 11.2 percent YTD in 2022. The stock had touched a 52-week-high of ₹2,397.57 on (18/01/2022) and a 52-week-low of ₹1,273.95 on (14/06/2022). For Q2FY23, the company posted a promoter shareholding of 74.98% and a public shareholding of 25.02%.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.