Triveni Turbine Ltd. on 29/10/18 informed of a meeting of the Board of Directors of the Company to consider and approve unaudited financial results for the quarter ended September 30, 2018 and also consider a proposal for for buy-back of the equity shares. As approved in board meeting on 01/11/18, Triveni Turbine Buyback comprises buyback of equity shares of the Company having a face value of Re. 1/- each on a proportionate basis, through the “Tender Offer” route. Triveni Turbine Buyback is at  a price of Rs. 150/- for  an aggregate amount not exceeding Rs. 100 crore for  66,66,666 Equity Shares. Triveni Turbine Buyback represents  2.02% of the total paid-up equity share capital of the Company.

Triveni Turbine Buyback 2018
Particulars
Buyback 2018
Announcement of Intent for Buyback29-10-18
Market price a day before this (Rs.)99
Board meeting for Buyback01-11-18
Buy Back Type Tender Offer
Buy Back Price150
Market Price before Board meeting103
Market Price a day after Board meeting112.55
% Premium on Market Price45.63%
Buy Back Size in Rs. Crore100
Buy Back Size ( Shares)6,666,666
Equity Capital in crore33.00
Tot Number of shares329,972,150
Face Value of Share in Rs.1
% Buyback2.02%
Record Date
Market Price as on RD for buybackYet to Happen
Market Price on issue Closing DateYet to Happen
Buy Back Issue dateYet to Happen
Indicative Mrkt Pr aft return of Shares
Buyback Shares reserved for Retail 1,000,000
No. of Retail Shares on RD BuybackYet to Happen
Buyback EntitlementYet to Happen
No. retail Shareholders who bidYet to Happen
Shares Tendered by retailYet to Happen
Tendering ratioYet to Happen
Retail responseYet to Happen
Overall Retail AceeptanceYet to Happen
Triveni Turbine Buyback: A Framework to Estimate Acceptance Ratio:

This framework is based on estimation of shareholding of Triveni Turbine investors who hold around 2000 number of shares as on 31/03/2018. To this we have added estimates for 
1) Few additional purchase  of Shares by existing shareholders with eye on earning additional returns through buyback. This is expected to be quite low.
2) Purchase of Shares by arbitrage investors.

Based on approximations indicated above, and taking a considerably a relatively high tendering ratio of 65-70%, Triveni Turbine Buyback could have a acceptance ratio in 25%-35%.  

Cross Tabulation of Estimated Returns for Triveni Turbine Buyback 

The absolute returns/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 related to international markets. We have depicted  estimated Absolute Returns in a table form as a function of various possible combinations of Acceptance Ratios and Price Post Buyback.

Shares Purchased
1600
Nos.
Share Buyback Price150
Tabulation of Absolute Returns
A) Based on Share Price at time of Post
Share Purchase Price taken112.55Investment180080Rs.
Acceptance Ratio / Price Aft Buyback 909396100
25%-6.71%-4.71%-2.71%-0.04%
30%-4.04%-2.18%-0.31%2.18%
35%-1.38%0.36%2.09%4.40%
A) Based on Current Market Price (Live)
Share Purchase Price taken115.00Investment184000Rs.
Acceptance Ratio / Price Aft Buyback 909396100
25%-8.70%-6.74%-4.78%-2.17%
30%-6.09%-4.26%-2.43%0.00%
35%-3.48%-1.78%-0.09%2.17%
This post is purely for informative and educational purpose and is in no way suggestive of taking any position in the counter. Profit or Loss in  any buy sell operation in stocks is associated with significant risk of capital loss. For more on Buyback Benefits and other issues please refer the earlier Posts
 Buyback of Shares: A Primer for Retail Investors
 TCS Buyback of Shares 2018
 HCL Technologies Buyack 2018 (HCLTECH Buyback)
 Mphasis Buyback of Shares 2018
 Navneet Buyback 2018

 

About Triveni Turbine Ltd.:
  • Triveni Turbines is one of the largest manufacturers of industrial steam turbines globally. The Company designs and manufactures steam turbines up to 100 MW, and delivers robust, reliable and efficient end-to-end solutions
  • Triveni Turbine Ltd. (TTL) is also one of the largest players globally in the Biomass segment, with ~ 20% market share.
  • The Company provides renewable power solutions specifically for Biomass, Independent Power Producers, Sugar & Process Co-generation, Waste-to-Energy and District Heating. Its steam turbines are used in diverse industries, ranging from Sugar, Steel, Textiles, Chemical, Pulp & Paper, Petrochemicals,
    Fertilisers, Solvent Extraction, Metals, Palm Oil to Food Processing.
Triveni Turbine Ltd. : Summary of Financials,  Stock Price Trend, Qtrly Results

ParameterFigures
Market Cap (in ₹ Cr.)3,695.00
Earning Per Share (EPS TTM) Rs.3.2
Price To Earnings (P/E) Ratio35
Book Value Per Share 13.52
Price To BV (P/B) Ratio8.28
EBIT Margin (%)19.94
PAT Margin (%)13.22
ROCE (%)35.18
Debt to Equity (D/E) Ratio0

 

Triveni Turbine Buyback price chart

Quarterly Results

Particulars

Sep-18Jun-18Mar-18Dec-17Sep-17Jun-17
Net Sales217.24171.76244.13165.59219.69121.69
Total Income222.64175.18247.63167.61221.48126.41
Total Expenditure172.43141.55187.95134.72173.64103.37
PBIDT50.2133.6359.6832.8947.8423.04
Interest0.040.010.010.30.140.08
PBDT50.1733.6259.6732.5947.722.96
Depreciation4.794.795.334.684.075.04
Tax14.679.5720.1911.1614.684.85
Deferred Tax0.590.25-1.23-2.630.520.27
Net Profit 30.1219.0135.3819.3828.4312.8
EPS0.910.581.070.590.860.39
Book Value 000000
Dividend (%)55004500
Equity333333333333
PBIDTM(%)23.1119.5824.4519.8621.7818.93
PBDTM(%)23.0919.5724.4419.6821.7118.87
PATM(%)13.8611.0714.4911.712.9410.52
Assessment: Triveni Turbine Buyback
  • Triveni Turbine reported inline numbers in Q2FY19 with revenues at same  level (yoy) and some improvement in profitability.
  • Despite a not so rosy picture in sugar sector, Triveni Turbine may still be able to get healthy order inflow from the sector, as the government’s focus on Ethanol blending and co-generation can  drive demand.
  • while Power sector suffers from no so rosy outlook, Triveni Turbine focus on   renewable, waste to energy and biomass has resulted in good order inflow.
  • Triveni Turbine exports are focused largely on  waste to energy, renewable and biomass segment  and in Q1Fy19, exports accounted for 42% share.
  • Promoters holding in the company is high at about 75%.
  • After a run up on announcement of buyback price, it may be better to buy the share at dips.
  • Triveni turbine stock  is not in F&O.

Standard disclaimer:  I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.