Sharda Motor Industries Ltd Buyback (Sharda Motor Industries Buyback 2024) Detail

Last date to be eligible to participate in buyback is June 4, 2024.

The Sharda Motor Industries Buyback 2024 is a Tender Offer.

The Sharda Motor Industries Buyback 2024 is being offered at Rs ₹1800 per share per equity share.

The record date for the Sharda Motor Industries Buyback 2024 is June 5, 2024.

The issue size of Sharda Motor Industries Buyback 2024 is of 1,027,777 equity shares at ₹1800 per share aggregating upto ₹185.00 Crores.

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

1. The Buy-Back will help the Company to return surplus cash to its shareholders holding ordinary shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
2. The buyback which is being implemented through the tender route as prescribed by the Buyback regulations, involves allocation of the number of equity shares as per their entitlement as 15% of the number of equity shares to be bought back whichever is higher, reserved for small shareholders. The Company believes that the reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholders" as per Regulation 2(i)(n) of the Buy-Back Regulations;
3. The Buy-Back would help in improving return on equity by reducing the share capital base and increasing shareholder's value in the longer term;
4. The Buy-Back gives an option to the shareholders holding ordinary shares of the Company, who can choose to participate and get cash in lieu of ordinary shares to be accepted under the Buy-Back offer or they may choose not to participate and benefit from a resultant increase in their percentage shareholding, post the Buy-Back offer, without additional investment.

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 Sharda Motor Industries 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.