Automobile Corporation of Goa Buyback approved by its Board entails a proposal for purchase of up to 3.33 lac shares at Rs 600 (Rupees Six Hundred) per share, aggregating Rs 19.98 crore. Automobile Corporation of Goa Buyback represents approximately 5.19% of the total paid-up Equity Share Capital of the Company and is on a proportionate basis under “Tender Offer” route. Automobile Corporation of Goa Ltd has fixed Friday, September 20, 2019, as the record date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the Buyback.
See List of all Forthcoming and Recent Buybacks
Updates
- 100 % Acceptance Ratio
- 8.3% Tendering Only
- 11.6% entitlement Ratio
Automobile Corporation of Goa Buyback : Key Info
Type | Tender |
|---|---|
| MP initially | 444.4 |
| Announcement | 19-07-19 |
| MP befo BM | 465.2 |
| Board meet | 24-07-19 |
| Buy Back Price | 600 |
| % Premium on MP | 35.01% |
| MP after BM | 482.2 |
| BuyBack Size Rs. Cr | 19.98 |
| BuyBack Size- Shrs | 333,000 |
| Tot No.of shares | 6,421,622 |
| % Buyback | 5.19% |
| Equity Capital- cr | 6.42 |
| FV of Share in Rs. | 10 |
| Shares - Retail | 83,250 |
| Record Date | 20-09-19 |
| MP on RD | |
| Buy Back Issue date | 18-10:04-11-19 |
| Shares on RD | 717869 |
| Buyback Entitlement | 11.60% |
| Shares Tendered | 59592 |
| Tendering ratio | 8.30% |
| Retail response | 71.58% |
| Aceeptance % | 100.00% |
Automobile Corporation of Goa Buyback: Acceptance Ratio Possibilities
This framework is based on estimation of shareholding of Automobile Corporation of Goa shareholders who hold around 2000 number of shares. To this we have added estimates/approximations for
1) Few additional purchase of Shares by existing shareholders with eye on earning additional returns through buyback. This is expected to be low.
2) Purchase of Shares by Arbitrage investors.
Automobile Corporation of Goa Buyback could result in 10-20% acceptance ratio.
Return Scenarios: Automobile Corporation of Goa Buyback
The absolute returns (Profit/Loss) that may accrue to an Investors/Arbitrage trader are a function of Percentage Acceptance Ratio and Price Post Buyback. Investors may kept in mind that stock markets are quite volatile at this juncture and there are many political and other uncertainties due to elections. We have depicted some scenarios for Absolute Returns in a table form as a function of various possible combinations of Acceptance Ratios and Price Post Buyback.
Shares Bought | 350 | Nos. | |
|---|---|---|---|
| Buyback Price | 600 | ||
| Absolute Returns | |||
| Price when posted | 500.00 | ||
| Investment (Rs.) | 175000 | ||
| MP Aft Buybk | |||
| Acceptance % | 450 | 470 | 490 |
| 5% | -8.50% | -4.70% | -0.90% |
| 10% | -7.00% | -3.40% | 0.20% |
| 20% | -4.00% | -0.80% | 2.40% |
About Automobile Corporation of Goa Ltd
- Automobile Corporation of Goa Limited is engaged in manufacture of pressed parts, components, sub-assemblies for various range of automobiles. It also manufactures bus bodies and component parts
- The Company operates in two major two segments: Pressing Division and Bus body Building Division.
- The Pressing Division segment is engaged in the manufacture of pressed parts, components, sub-assemblies and assemblies.
- The Bus body Building Division segment is engaged in the manufacturing of bus bodies and component parts for bus bodies. The Company’s products include staff transport application buses, luxury application buses, city application buses, defense application buses, airport application buses, school application buses, sleeper buses, special application vehicles and sheet metal products. The Company manufactures sheet metal components, assemblies and bus coaches at its factories situated at villages Honda and Bhuimpal, Goa. esh fruits and vegetables to supermarket chains in India and abroad.
- It exports to various parts of Europe, Russia and Far-east, as well as in domestic market. The Company is engaged in the processing of fruits and vegetables.
- The Company’s segments include Fresh Fruits and Food Processing. The Company is involved in producing fruit pulp and concentrate for both the domestic and international customers.
- The Company offers pomegranate arils. The Company offers grapes, such as Thompson seedless, flame seedless and sharad seedless. It offers processed foods, such as pomegranate, mango pulp, alphonso mango pulp, kesar mango pulp, totapuri mango pulp, guava pulp, tomato paste, amla (gooseberry) pulp, and red papaya concentrate, puree and pulp.
- It has approximately three pack houses and cold storage facilities located in the state of Maharashtra. The Company has a juice processing plant at Nasik, Maharashtra, approximately 180 kilometers from Mumbai.
Automobile Corporation of Goa: Price Trend, Summary of Financials
Financial Overview
| Market Cap- Rs. Cr | 313 |
| CMP in Rs. | 487.0 |
| Revenue – cr. | 426.17 |
| Net profit-cr | 20.86 |
| Equity Share Capital | 6.42 |
| Face Value | 10 |
| EPS TTM | 32.49 |
| Price / Earning (PE) | 14.99 |
| Book Value | 327.63 |
| Price / BV | 1.49 |
| ROCE % | 17.16% |
| ROE % | 11.27% |
| Sales 3 yr CAGR | 0.73% |
| Dividend Yield | 3.59% |
| Debt / Equity Ratio | 0.00 |
| 52 week H/L | 878.80 / 441.00 |
Assessment: Freshtrop Fruits Buyback
- Automobile Corporation of Goa stock has good Dividend Yield of 3.59% at the current price and has been maintaining a healthy dividend payout of 54.38%
- Company is virtually debt free.
- After the announcement of buyback BM, the stock went up 8% and and small size of Automobile Corporation of Goa buyback does not leaves little scope for making gains.
- I do not intend to participate in Automobile Corporation of Goa Buyback as it is of small size and buyback price together with likely low acceptance ratio leaves little scope for any arbitrage.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering and Management . Iam also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2). This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/ Buy Back/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.