Buyback Update: Balrampur Chini Mills Ltd


Balrampur Chini mills Ltd. is one of the largest integrated sugar manufacturers in India. Their business portfolio consist of manufacturing and marketing of sugar, ethyl, alcohol, ethanol, generation & selling of power & also manufacturing & marketing of organic manure. The Company possesses a cane crushing capacity of 76,500 tonnes per day, distillery capacity of 360 KL per day and saleable co-generation capacity of 163.20 megawatts.

Balrampur Chini reported strong Q4FY20 results with 31.1% growth in revenues led by 40% growth in sugar sales & 53.2% growth in distillery sales. The higher growth in sugar sales was led by 19.4% jump in sugar volumes aided by 1.7 lakh tonnes of sugar exports during the quarter.

The company has been able to reduce its sugar inventory by 39,000 tonnes in FY20. This
along with strong earnings led to the operating cash flow generation of 850 crore. The company reduced its working capital debt by 336 crore.

Buyback Details
Target CompanyBalrampur Chini Mills Ltd.
Buyback Price180/-
CMP131/-
Premium (%)37.4
Offer size No. of shares (In Cr.)1
Offer size value (In Cr.)180
Market Cap (In Cr.)2,890
Buyback size to M.Cap6.2%
Record DateJuly 03, 2020
Buyback Scenario
   Acceptance Ratio
 Rs. /Share6%8%12%
1,200 Shares @ 131/-=1,57,200/-
Buyback Price/No. of Shares180/-7296144
Buyback Realisation 12,960/-17,280/-25,920/-
Untendered Shares 1,128/-1,104/-1,056/-
We assume sell price of Untendered Shares and value131/-1,47,768/-1,44,624/-1,38,336/-
Total Sell value 1,60,728/-1,61,904/-1,64,256/-
Total Profit 3,528/-4,704/-7,056/-
Total Profit % 2.2%3.0%4.5%

Financials

(In Cr.)20162017201820192020
Sales2,7573,4604,3434,2864,741
Total Income2,8033,4854,3734,3294,785
Total Expenditure2,6292,6963,9863,6934,161
EBIT174789387636624
PAT100591221569512
NPM (%)3.617.15.113.310.8
ROE (%)8.238.014.327.221.5
ROCE (%)5.342.821.125.322.2
ROA (%)2.714.76.312.210.8
Debt to Equity(x)1.221.090.540.790.58
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