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 Ltd (EIL) Ltd BuyBack 2020 Offer Deal:
| 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 211.06% of 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 | 12.02.2021 |
| 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?
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.
 Buyback 2020, Buyback Price With Record Date and Other Details){kind=link}