Engineers India Ltd (EIL) Buyback 2020, Buyback Price With Record Date and Other Details

Engineers India Ltd (EIL) will buyback nearly 7 crore shares for about Rs 587 crore as the government taps cash-rich PSUs to meet its revenue targets.In a filing to the stock exchanges, EIL said it will buy back 11.06 percent of the fully paid-up equity shares at a price of Rs 84 apiece.
The board of directors “approved the proposal to buyback of not exceeding 6,98,69,047 (6.98 crore) equity shares of face value of Rs 5 each of the company (representing 11.06 percent of the total number of fully paid-up equity shares in the paid-up share capital of the company) at a price of Rs 84 per equity for an aggregate consideration not exceeding Rs 586.90 crore,” it said.

    engineers india buyback 2020

    Buyback Type: Tender Offer
    Buyback Record Date: January 01 2021
    Buyback Offer Amount: ₹ 586.90 Crore
    Date of Board Meeting approving the proposal: Nov 12 2020
    Date of Public Announcement: Dec 22 2020
    Buyback Offer Size: 11.06%
    Buyback Number of shares: 6,98,69,047 crores
    Price Type: Tender Offer
    FV: Rs. 5
    Buyback Price: ₹ 84 Per Equity Share
    Engineers India Ltd (EIL) buyback of  6.98 crores equity shares which is around 211.06of all the existing number of equity shares at a price of ₹84 per equity share. The buyback offer not exceeding of ₹586.90 crore of total buyback offer size.

    Note: If anything you want to know about the buyback offer you can refer the TCS buyback offer documents. Click Here


    Engineers India Ltd (EIL) Buyback Important Dates

    Buyback Activity Date
    Board Meeting for Engineers India Ltd (EIL) Buyback proposal 12.11.2020
    Engineers India Ltd (EIL) Buyback Approval date 21.12.2020
    Public Announcement of  Buyback 21.12.2020
    Buyback Record Date 01.01.2021
    Buyback opens on/Buyback Opening Date 22.05.2021
    Buyback closes on/Buyback Closing Date 05.02.2021
    Cut-off date to receive completed tender forms by Registrar 08.02.2021
    Cut-off date for verification by the Registrar 10.02.2021
    Cut-off date to inform Stock Exchange on acceptance or
    non-acceptance of tendered Equity Shares by Registrar
    Last date of settlement of bids on the stock exchange 15.02.2021
    Last date to return unaccepted shares by Registrar 15.02.2021
    Last date of extinguishment of Equity Shares 22.02.2021

    Necessity of Buyback by Engineers India Ltd (EIL) 

    Buy-back is  the acquisition by a company of    its own shares. Buy-back is   an efficient form of    returning surplus cash to  the members holding equity shares of    the Company, inter-alia, for the following reasons: 

    i.    The Buy-back will help the Company to   return surplus cash to    its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to   members; 

    ii.    The Buy-back, which is   being implemented through the Tender Offer route as prescribed under the Buy-back Regulations, would  involve allocation  of  higher  of  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 of    15% for small shareholders would benefit a large number of    public shareholders, who would get classified as “small shareholder; 

    iii.    The Buy-back would help in   improving return on equity, by reduction in   the equity base, thereby leading to   long term increase in  shareholders’ value; and 

    iv.    The  Buy-back  gives an  option to the  members  holding  equity shares  of the  Company, who can  choose to participate and get cash in  lieu of    Equity Shares to   be accepted under the Buy-back offer or    they may choose to not participate and enjoy a resultant increase in   their percentage shareholding, post the Buy-back offer, without additional investment. 

    After considering several factors and benefits to   the shareholders holding Equity Shares of    the Company, the Board decided to   recommend Buy-back not exceeding 6,98,69,047 (Six Crore Ninety Eight Lakhs Sixty Nine Thousand and Forty Seven) fell paid up Equity Shares representing 11.06% of the total paid-up equity capital of    the Company at a price of? 84/- (Rupees Eighty Four only) per Equity Share, payable in  cash, fbran aggregate maximum amount not exceeding ? 586.90 Crore (Rupees Five Hundred Eighty Six Crore and Ninety Lakhs only) excluding filing fees payable to   the Securities and Exchange Board of    India, advisors fees, public announcement publication expenses, printing and dispatch expenses, taxes interali a including  buy-back taxes, securities transaction tax, goods and services tax, stamp duty and other incidental and related expenses, which represents 24.998% and 24.462% of    the aggregate of    the Company’s fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of    the Company, respectively for the financial year ended March 31,2020. 

    About Engineers India Ltd (EIL) Company

    Engineers India Ltd (EIL) is a leading global engineering consultancy and EPC company. Established in 1965, EIL provides engineering consultancy and EPC services principally focused on the oil & gas and petrochemical industries.
    The Company has also diversified into sectors like infrastructure, water and waste management, solar & nuclear power and fertilizers to leverage its strong technical competencies and track record. Today, EIL is a ‘Total Solutions’ engineering consultancy company providing design, engineering, procurement, construction and integrated project management services from ‘Concept to Commissioning’ with highest quality and safety standards. EIL’s QMS, OHSMS and EMS are certified to ISO 9001, OHSAS 18001 and ISO 14001 respectively. It also provides specialist services such as heat and mass transfer equipment design, environmental engineering, specialist materials and maintenance and plant operations and safety services.
    With corporate office in New Delhi, EIL also operates from its office in Gurugram, branch office in Mumbai, three regional engineering offices in Kolkata, Chennai & Vadodara and has inspection offices at all major manufacturing locations of the country. The company’s overseas presence is marked by an engineering office in Abu Dhabi, which caters to the business needs in UAE/Middle-East region. Additionally, there are offices in London, Milan and Shanghai to coordinate the activities of international procurement and marketing.
    EIL’s technological excellence is driven by 2409 engineers & professionals in a competent employee base of 2806 employees as on March 31, 2020. The availability of technical resources per annum is about 4.6 million man-hours in EIL’s design offices along with 1.19 million man-hours of construction management services.

    How to Participate in buyback?

    1. Firstly, to be eligible for the buyback the investor should have shares of Engineers India Ltd (EIL) in demat or physical form as on record date (not announced)

    2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Announced], by selling your shares through your broker on NSE or BSE.

    3. Then on [Not Announced] the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account. 

    Engineers India Ltd (EIL) Buyback 2020 FAQs:

    When is Engineers India Ltd (EIL) Ltd Buyback Record Date?
    Engineers India Ltd (EIL) buyback 2020 record date is 01 January 2020

    When is Engineers India Ltd (EIL) Buyback announcement Date?
    Engineers India Ltd (EIL) buyback 2020 announcement date is 12 December 2020.

    What is Engineers India Ltd (EIL) Buyback Price?
    The company has fixed the price at ₹84

    How to apply for Engineers India Ltd (EIL) Buyback 2020?
    As per the record date you need to have Engineers India Ltd (EIL) shares in your demat account. You can participate in buyback after having the stock in your account.

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