Today, investors look for situations in the stock market where they can turn their cents to dollars. There are various situations like turnarounds, rights issues, stock splits, Initial Public Offerings (IPOs), and buybacks. Investors are constantly in hunt for situations like these. So let’s discuss one such situation: MOIL Buyback.
About the company
MOIL is a Schedule “A” Miniratna Category-I Company. It was originally incorporated as Manganese Ore (India) Limited in the year 1962. Subsequently, name of the Company was changed from Manganese Ore (India) Limited to MOIL Limited during the financial year 2010-11.
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.
During the Financial year 2010-11, MOIL got listed on 15th December, 2010 on National Stock Exchange and Bombay Stock Exchange. After the listing, the shareholding in the company was Govt. of India (71.57%), Govt. of Maharashtra (4.62%) and Govt. of Madhya Pradesh (3.81%) and Public (20%). At present the shareholding pattern of the company is Govt. of India (53.84%), Govt. of Maharashtra (5.11%) and Govt. of Madhya Pradesh (5.40%) and Public (35.65%).
The MOIL 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.
|Buyback Type||Tender Offer|
|Record Date||Dec 31, 2021|
|Buyback Offer Amount||₹ 693 Crores|
|Board Meeting approving the proposal Date||Nov 10, 2021|
|Public Announcement Date||Nov 10, 2021|
|Buyback Offer Size||14.23%|
|Buyback Number of Shares||33,804,878|
|Buyback Price:||₹ 205 Per Equity Share|
Discussed above are the details of the MOIL Limited buyback. But investors must have shares in their demat account as on the record date i.e. December 31, 2021. Investors can perform further analysis to exploit the situation to their benefit.