VRL Logistics Limited Buyback - VRL Logistics Limited Buyback Price With Record Date and Other Details

VRL Logistics Limited will buyback nearly 20,00,000 shares for about Rs.60,00,00,000/- (Rupees Sixty crores only)/-. In a filing to the stock exchanges, VRL Logistics Limited said it will buyback 9.73 percent of the fully paid-up equity shares at a price of Rs.300/- per share (Maximum Buyback Price).

The board of directors of VRL Logistics Limited approved the proposal to buyback of not exceeding 20,00,000 equity shares of face value of Rs 10 each of the company (representing 9.73% 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 300 per equity for an aggregate consideration not exceeding Rs 60 crore," it said.

    VRL Logistics buyback

    VRL Logistics Limited BuyBack 2021 Offer Deal:

    Buyback Type:Open Market Offer
    Buyback Record Date: N/A
    Buyback Offer Amount: ₹ 60 Crore
    Date of Board Meeting approving the proposal: Feb 06 2021
    Date of Public Announcement: Feb 08 2021
    Buyback Offer Size: 9.73%
    Buyback Number of shares: 20,00,000
    Price Type: Open Market 
    FV: Rs. 10
    Buyback Price: ₹ 30 Per Equity Share

    VRL Logistics Limited buyback of 20,00,000 equity shares which is around 9.73of all the existing number of equity shares at a price of ₹300 per equity share. The buyback offer not exceeding of ₹ 60 crore of total buyback offer size.

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


    VRL Logistics Limited Buyback Important Dates

    Buyback ActivityDate
    Board Meeting for VRL Logistics Limited Buyback proposal06.02.2021
    VRL Logistics Limited Buyback Approval date06.01.2021
    Public Announcement of  Buyback08.02.2021
    Buyback Start Date 17-02-2021
    Last date for the completion of the Buy-back16-08-2021

    Necessity of Buyback by VRL Logistics Limited

    1. The Buyback will help the Company achieve the following objectives: (i) optimize returns to shareholders; and enhance overall shareholders’ value. The Buyback is being undertaken, inter-alia, for the following reasons: 

    (i) The Buyback may help in improving return on equity by reduction in the equity base, thereby leading to long term increase in shareholders’ value.

    (ii) 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.

    2. The Buyback is not likely to cause any material impact on the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations and for continued capital investment. 

    3. The Board at its meeting held on February 06, 2021, considered the accumulated free  reserves  as  well  as  the  cash  liquidity  reflected  in  the  last  audited  financial statements  as  on  March  31,  2020,  and  considering  these,  the  Board  decided to  allocate  a  sum  of  ` 60 Crore (Indian Rupees Sixty Crore Only) excluding the Transaction Costs for distributing to the shareholders holding Equity Shares of the Company through the Buyback.

    About VRL Logistics Limited

    VRL was founded in 1976 by DR. Vijay Sankeshwar in Gadag, a small town in North Karnataka with a single truck and a vision that was way ahead of its time. VRL gradually expanded its services to Bangalore, Hubli and Belgaum. From this humble beginning VRL has today grown into a nationally renowned logistics and transport company which is also currently the largest fleet owner of commercial vehicles in India with a fleet of 4835 Vehicles (Including 362 Passenger Transport Vehicles & 4473 Goods Transport Vehicles amongst others). VRL finds mention in the Limca Book of Record as the largest fleet owner of commercial vehicles in india in the Private Sector. Mr. Vijay Sankeshwar has now been joined by his son Mr. Anand Sankeshwar who brings in newer strategies to further drive the growth of the Company.

    Over the years, VRL has pioneered in providing a safe and reliable delivery network in the field of parcel service. It has spread its operations to Courier Service, Priority Cargo & Transport of Passengers by Air to meet the growing demands of its burgeoning customer base.

    3PL & Warehousing solutions offered by VRL are tailor-made and cater to unique needs of its diverse customer base. With the largest goods transportation network in India, VRL parcel service is indispensable for a large number of Corporate Houses. This network spans the length and breadth of the country and is supported by strategically located transshipment hubs. We operate through a network of 929 Branch and franchisees to cater our valuable customers and we are now in the process of expanding our services to reach even the remotest locations of the Country.

    How to Participate in buyback?

    1. The Buy-back is open to all shareholders | beneficial owners holding the Equity Shares in de-materialized form (“Demat Shares”). Shareholders holding Equity Shares in physical form can participate in the Buy-back after such Equity Shares are de-materialized by approaching depository participant. However, in accordance with Regulation 16
    (ii) of the Buy-back Regulations, the Buy-back will not be made from the Promoters and Promoter Group of the Company.

    2. Further, as required under the Act and the Buy-back Regulations, the Company will not buy back any Equity Shares which are locked-in or non-transferable, until the pendency of such lock-in, or until the time such Equity Shares become freely transferable, as applicable.

    3. The Buy-back will be implemented by the Company in accordance with Regulation 4(iv)(b)(ii) read with Regulation 16 of the Buy-back Regulations from the open market through the Stock Exchanges having nationwide terminal, using the order matching mechanism except “all or none” order matching system as provided under the Buy-back Regulations.

    4. For implementation of the Buy-back, the Company has appointed Edelweiss Broking Limited as the registered broker to the Company (the “Company’s Broker”) through whom the purchases and settlements on account of the Buy-back will be made by the Company. The contact details of the Company’s Broker are as follows:

    ICICI Centre, H.T. Parekh MargChurchgate,
    Mumbai – 400 020Tel. No.: +91 22 2288 2460
    Fax No.: +91 22 2282 6580
    Contact Person: Allwyn Cardoza
    Website: www.icicisecurities.com
    SEBI Registration No.: INZ000183631CIN: L67120MH1995PLC086241

    VRL Logistics Limited Buyback 2021 FAQs:

    When is VRL Logistics Limited Buyback Start Date?
    VRL Logistics Limited buyback 2021 start date is 17 February 2021

    When is VRL Logistics Limited Buyback announcement Date?
    VRL Logistics Limited buyback 2021 announcement date is 06 Feb 2021.

    What is VRL Logistics Limited Buyback Price?
    The company has fixed the price at ₹ 600

    What is VRL Logistics Limited Buyback Last Date?
    VRL Logistics Limited buyback Last Date is 16 Aug 2021.