Shanthi Gears Buyback 2019 – Letter of Offer, Record Date, Buyback Date

shanthi gears buyback 2019

Shanthi Gears Limited has announced the buyback of equity shares from the shareholders at a price of Rs 140 per equity share. This buyback offer starts on 13th March 2019 and closes on 27th March 2019. The record date of this offer is 8th February 2019. A meeting of the board of directors of the company was held on  26th December 2019 in which the buyback was approved by the members. The last date for the extinguishment of equity shares is scheduled as 12th April 2019. This article provides information about Shanthi Gears Buyback 2019.

Company Details

Shanthi Gears Limited is a Coimbatore, Tamilnadu based company is a leading gear manufacturer in India. It is a subsidiary of Tube Investments which belongs to the Murugappa Group. This company was established in the year 1972 and later acquired by the Murugappa group under the flagship of Tube Investments. The company is engaged in the manufacturing of gears and gear products from 4 factories with a workforce of more than 1,000 employees. For more details about the company, please visit this link to the company.

Shanthi Gears Buyback 2019 – Offer Details
Type of Offer Buyback of Equity Shares
Company Shanthi Gears Limited
Buyback Opens 13th March 2019
Buyback Closes 27th March 2019
Record Date 8th February 2019
Buyback Price Rs 140 per equity shares
Buyback Size 50,00,000 Equity Shares (Rs 70 Crore)
Last Date of Extinguishment of Equity Shares 16th April 2019
Broker of the Company Axis Capital Limited
Designated Stock Exchange BSE
Shanthi Gears Ltd Buy-back 2019 – Necessity of the Buyback

According to the company, the following are the key objectives of this buy back:-

  1. To distribute surplus cash to the shareholders in order to enhance the overall return to shareholders.
  2. To benefit the small shareholders through a reservation of up to 15%  for them in this buyback.
  3. It will improve the financial ratios such as earning per share and return on equity.
  4. It gives the options to the shareholders that either participate in the buyback offer and get cash in lieu of shares or do not participate in the buyback offer and avail the increased rates of shares.
Shanthi Gears Buyback 2019 – Shareholding Pattern

Click here to see the shareholding pattern of Shanthi Gears Limited.

Shanthi Gears Ltd Buyback 2019 – Company Financials

Click here to see the financial details of Shanthi Gears Limited.

Shanthi Gears Ltd Buy-back 2019 – Manager to the Buyback

The manager to the Shanthi Gears Ltd buy-back 2019 is Axis Capital Limited.

Shanthi Gears Ltd Buy-back 2019 – Registrar to the Buyback

The Registrar to the Shanthi Gears Ltd buy-back 2019 is S.K.D.C Consultants Limited.

Shanthi Gears Buyback 2019 – Letter of Offer

Please click here to read the letter of offer of Shanthi Gears Ltd buy-back 2019.

Shanthi Gears Limited Buy-back 2019 – How to Participate
  1. You must have the equity shares of Shanthi Gears bought before the record date, either in demat or in physical form.
  2. Follow the instructions given in the letter of offer.
  3. Participate in the offer through your stockbroker of which you are having the demat account.
  4. Wait till the last date of extinguishment.
  5. Either 100% of your participated shares will be bought by the company or it may be fractional.
  6. For bought shares, you will receive the cash in your demat and if some shares are not bought, you will get the remaining shares in your demat account.

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Tags: Shanthi Gears, Buyback 2019


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