07-Mar-2024
2 mins read
Tips Industries plans to buy back 595,000 of its own shares. This represents about 0.46% of the total free float market shares available in the market. The company intends to offer the issue type as a tender offer. In this offer, Tips Industries is willing to purchase its shares from existing shareholders at a fixed price of Rs 625 per share. The total value of this buyback is Rs 37.19 Cr, which is the amount the company is willing to spend to acquire these shares. Share buybacks are often initiated by companies to return value to shareholders or demonstrate confidence in their own financial health. In this case, Tips Industries is making a formal offer to buy a specific number of its shares at a specified price from the market.
Details of Tips Industries
Tips Industries is one of the largest and leading media and entertainment companies in India, incorporated in the production and distribution of audio and video content digitally overseas and in India. Kumar Taurani and Ramesh Taurani, the co-founders of TIPS, started as a trading firm in the late 1970s and has grown to become a leading entertainment company in India over a period of 3 decades. In 1990, Tips Industries set up the first manufacturing facility at Palghar, Maharashtra. Presently, the company is in the business of marketing and manufacturing pre-recorded audio and blank audio cassettes and replicated CDs. Tips: Today, it has 3,500 titles, and at least 10 of them sold over 10 million copies. They have 15 songs with over 5 million sales and 20 with a million. Since 1981, they have the most gold and platinum discs in India. They also own the music rights for 50 Hindi movies, spending around $2 million each on production and promotion.
Company’s Financials of Tips Industries Limited (In Rs Crore)
The company reported its net revenue of 192.7 crore and Profit after Tax is 146.78 crore for the year ended March 31, 2023, Tips Industries Limited witnessed 38.43% and 18.52% increment in revenue and profit after tax respectively.
| Period Ended | 31-Dec-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 227.66 | 192.7 | 146.78 | 150.1 |
| Revenue | 187.39 | 192.14 | 138.8 | 95.42 |
| Profit After Tax | 101.4 | 76.52 | 64.56 | 43.46 |
Tips Industries Limited Buyback 2024 Detail
| Issue Period | April 26, 2024 - May 3, 2024 |
| Security Name | Tips Industries Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 595,000 (0.46 % of Total number of equity Shares) |
| Issue Size (Amount) | Rs 37.19 Crores |
| Buyback Price | Rs 625 per share |
| Face Value | Rs 1 per share |
| Listing At | NSE, BSE |
Timetable of Tips Industries Buyback 2024
| Last Date to buy shares | April 19, 2024 |
| Record Date | April 22, 2024 |
| Offer Opens On | April 26, 2024 |
| Last Date for receipt of Tender Forms | May 3, 2024 |
| Offer Closes On | May 3, 2024 |
| Finalisation of Buyback Acceptance | May 10, 2024 |
| Last Date for settlement of bids | May 10, 2024 |
| Last Date for Extinguishment of Shares | May 23, 2024 |
Buyback Ratio Among Reserved and General Category
| Category | Entitlement Ratio of Buyback | Shares Offered |
| Reserved Category for Small Shareholders | 11 Equity Shares out of every 444 Fully paid-up Equity Shares held on the Record Date. | 89,250.00 |
| General Category for all other Eligible Shareholders | 11 Equity Shares out of every 931 Fully paid-up Equity Shares held on the Record Date. | 505,750.00 |
The Necessity of the Tips Industries Limited Buyback 2024
The Company is undertaking a buyback for several reasons. Firstly, it aims to return surplus cash to shareholders in proportion to their shareholding, which may enhance overall shareholder returns. Furthermore, the buyback, conducted via the tender offer route as per SEBI regulations, reserves a portion for small shareholders, aiming to benefit a significant number of public shareholders and the buyback is expected to improve EPS and ROE by reducing the equity base, ultimately increasing long-term shareholder value. Lastly, the buyback provides shareholders with the option to either participate and receive cash or opt-out and enjoy a higher percentage of shareholding post-buyback without further investment.
Lead Managers for Tips Industries Limited Buyback 2024
The lead manager for Tips Industries Limited Buyback 2024 is Inga Ventures Private Limited.
How to Apply for Tips Industries Limited Buyback 2024
Tips industries is open for subscription, you can click here to apply for the Tips Industries Limited Buyback 2024 with Bigul.
How to Check Allotment Status for Tips Industries Limited Buyback 2024
The registrar of Tips Industries Limited Buyback 2024 is Link Intime India Private Ltd. you can click here to check your allotment status.
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FAQs
- How many shares is Tips Industries Limited planning to buy back?
Tips Industries Limited plans to repurchase its 595,000 equity shares, which represents 0.46% of the company’s total number of equity shares. - What is the last Date to buy shares to be eligible for the buyback?
The last Date to purchase shares to be eligible for the buyback is April 19, 2024. - What is the buyback price for Tips Industries Limited shares
The buyback price has been set at Rs 625 per share. - What is the record date for the Tips Industries Limited buyback
The record date of buyback has yet to be announced. - What are Tips Industries Limited’s financial results for the recent fiscal year?
The company reported its net revenue of 192.7 crore and Profit after Tax is 146.78 crore for the year ended March 31, 2023, Tips Industries Limited witnessed 38.43% and 18.52% increment in revenue and profit after tax respectively. - Where will the Tips Industries Limited shares be listed?
The shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). - Who is the lead manager for the Tips Industries Limited buyback?
The lead manager for Tips Industries Limited Buyback 2024 is Inga Ventures Private Limited. - How can I apply for the Tips Industries Limited buyback?
Tips industries is open for subscription, then click here to apply for the Tips Industries Limited Buyback 2024 with Bigul. - How do I check my allotment status for the Tips Industries Limited buyback?
The registrar of Tips Industries Limited Buyback 2024 is Link Intime India Private Ltd.
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