Garware -Technical -Fibres-Limited- BUY-BACK-Elite-Wealth
  • By Elite Wealth
  • / November 3, 2022
  • / Buyback

Garware Technical Fibres Ltd. Formerly known as Garware-Wall Ropes Ltd. is one of India’s leading players in the technical textiles sector. The company is a multi-divisional, multi-geographical technical textiles company and provides world-class innovative solutions in high-performance aquaculture cage nets, fishing nets, sports nets, safety nets, agricultural nets, coated fabrics, polymer ropes, and geosynthetics.

Garware Technical Fibres Ltd. has a global presence with customers spread across 75 countries. The R&D Unit of the company is recognized by the Department of Science & Technology, of the Government of India. The company received the largest sports goods and sport nets exporter award from the Sports Goods Export Promotion Council, which is sponsored by the Ministry of Commerce, of Govt. of India. The management of the company is overseen by the Board of Directors headed by Chairman and Managing Director Mr Vayu R Garware. The day-to-day operations are managed by a team of experienced professionals having techno-commercial expertise with a vast industrial and marketing experience.

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    Garware Technical Fibres Buyback Detail:

    Issue open [.]
    Issue close [.]
    Ex-Date 3rd November 2022
    Record Date 4th November 2022
    Security Name Garware Technical Fibres Limited
    Issue Type Tender Offer
    Issue Size (Shares) 0.02 Crores
    Issue Size (Amount) ₹90.00 Crores
    Buyback Price ₹3750 per share
    Face Value ₹10 per share
    Listing At BSE, NSE

    Garware Technical Fibres Limited Financial Information:

    Particulars FY-22 (in cr.) FY-21 (in cr.) YoY
    Revenue from operations 1189.39 1034.57 15.0%
    Other Income 25.54 34.67 -26.3%
    Cost of goods sold 349.46 296.08 18.0%
    Employee expense 149.82 152.73 -1.9%
    Other expense 467.21 381.37 22.5%
    EBITDA 248.44 239.06 3.9%
    EBITDA margin% 20.89% 23.11% -9.6%
    Depreciation 21.46 20.64 4.0%
    Interest 10.57 10.32 2.4%
    PBT 216.41 208.10 4.0%
    Total tax 51.63 49.67 3.9%
    PAT 164.78 158.43 4.0%
    PAT margin% 13.56% 14.82% -35.25%
    Dep./revenue% 1.77% 1.93% -8.5%
    Int./revenue% 0.87% 0.97% -9.9%

    Necessity of the Issue:

    • The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.

    • The Buyback may help in improving the Company’s return on equity, by a reduction in the equity base, thereby leading to a long-term increase in shareholders’ value.

    • The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment

    Maximum number of equity shares that the company proposes to buyback:

    The Company proposes to buyback up to 2,40,000 (Two Lakhs Forty Thousand Only) Equity Shares (representing 1.16% of the total number of Equity Shares in the existing total paid-up equity capital of the Company as on the date of the Board Meeting and as of March 31, 2022)

    Garware Technical Fibres Limited’s shareholding pattern:

    Category of Shareholder Pre-Buyback
      Number of equity shares % to the existing equity share capital
    Promoters & Promoter Group along with persons acting in concert, (collectively “the Promoters”) 1,08,48,730 52.62%
    Foreign Investors (including Non-Resident Indians FIIs and Foreign Mutual Funds) 19,90,063 9.65%
    Financial Institutions I Banks & Mutual Funds promoted by Banks I Institutions 13,68,718 6.64%
    Others (Public, Public Bodies Corporate etc.) 64,10,658 31.09%
    Total 2,06,18,169 100.00%

    Registrar to the buyback:

    LINK INTIME INDIA PRIVATE LIMITED

    C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg

    Vikhroli (West) Mumbai

    Maharashtra, India 400 083

    Tel No.: +91 810 811 4949; Fax No.: +91 22 4918 6195

    Contact Person: Mr Sumeet Deshpande

    Email: gtfl.buyback2022@linkintime.co.in; Website: www.linkintime.co.in

    Investor Grievance E-mail: gtfl.buyback2022@linkintime.co.in;

    SEBI Registration No.: INR000004058

    Validity Period: Permanent

    CIN: U67190MH1999PTC118368