Chaman Lal Setia Exports Ltd. Buyback (Chaman Lal Setia Exports Buyback 2024) Detail

Last date to be eligible to participate in buyback is August 16, 2024.

The Chaman Lal Setia Exports Buyback 2024 is a Tender Offer.

The Chaman Lal Setia Exports Buyback 2024 is being offered at Rs ₹300 per share per equity share.

The record date for the Chaman Lal Setia Exports Buyback 2024 is August 19, 2024.

The issue size of Chaman Lal Setia Exports Buyback 2024 is of 2,007,930 equity shares at ₹300 per share aggregating upto ₹60.24 Crores.

The Buy-Back is being undertaken, inter-alia, for the following reasons:

1. The buyback will help the company to distribute surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
2. The buyback is expected to improve return on equity through the distribution of cash and improve earnings per share by reducing the equity base; thereby increasing the long-term shareholder's value.
3. The buyback gives an option to the shareholders holding equity shares of the company, either to sell their equity shares and receive cash or not to sell their equity shares and get a resultant increase in their percentage shareholding, post the buyback offer, without additional investment.
4. The buyback, which is being implemented through the tender offer as prescribed under the buyback regulations, would involve a minimum reservation of 15% for small shareholders and allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The company believes that this reservation for small shareholders would benefit many public shareholders, who would be classified as small shareholders.
   The buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the company.

Letter of Offer

All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.

The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.

The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.

The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.

The Chaman Lal Setia Exports Buyback 2024 offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.