GeeCee Ventures intimated on 15-05-19, its intent to go for a buyback. GeeCee Ventures Buyback approved by its Board on 22-05-19 comprises purchase by the Company of up to 8,14,815 fully paid- up equity shares of face value of Rs. 10/- at a price of Rs. 135 /- for an aggregate amount of up to Rs. 11 Crores GeeCee Ventures Buyback represents approximately 3.75% of the total paid-up equity capital of the Company and is on a proportionate basis under “Tender Offer” route. Record date for GeeCee Ventures Buyback is 07-06-19.

See List of all Forthcoming and Recent Buybacks

Buyback News

GeeCee Ventures Buyback : Updates

  • Issue Date 26-6-19 : 9-7-19
  • Entitlement ratio 7.57%
  • Record date : 07-06-19

GeeCee Ventures Buyback : Key Info

Buyback 19
Type Tender
MP befo announcement116
Announcement 14-05-19
MP after above113.55
MP befo BM122.8
Board meet22-05-19
Buy Back Price135
% Premium on MP9.93%
MP after BM 117.5
BuyBack Size- Rs. Cr11.0000025
BuyBack Size- Shares814,815
Tot No.of shares21,726,543
% Buyback3.75%
Equity Capital- cr21.73
FV of Share in Rs.10
Record Date07-06-19
Buy Back Issue date26-6:9-7-19
Shares reserved- Retail 122,222
Shares on RD 1614013
Buyback Entitlement7.57%
Shares Tendered
Tendering ratio
Retail response
Aceeptance %

GeeCee Ventures Buyback : Estimate of Acceptance Ratio:

This framework is based on estimation of shareholding of GeeCee Ventures shareholders  who hold around 2000 number of shares. To this we have added estimates for
1) Few additional purchase  of Shares by existing shareholders with eye on earning additional returns through buyback.
2) Purchase of Shares by Arbitrage investors.

Based on approximations indicated above and considering a moderate tendering ratio, under normal circumstances GeeCee Ventures Buyback could have acceptance ratio of 6-10%.

Estimated Returns: GeeCee Ventures 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 kep 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 Bought
1200
Nos.
Buyback Price135
Absolute Returns
Price when posted117.00
Investment (Rs.)140400
MP Aft Buybk
Acceptance %110113116
6%-4.70%-2.29%0.12%
8%-4.27%-1.91%0.44%
10%-3.85%-1.54%0.77%

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

About GeeCee Ventures

  • GeeCee Ventures Limited (GeeCee Ventures) is a holding company engaged in the business of construction and development of real estate; mobilization of capital, investing the funds of the Company in shares, stocks, debentures and other securities, and wind power generation.
  • The Company operates through three segments: Real Estate, Investments /Financing and Wind Power Generation.
  • The Company promotes the formation and mobilization of capital, to manage capital savings and investments.
  • The Company is engaged in the development of Cloud 36 project, which is located at Ghansoli, Navi Mumbai.
  • The Company is engaged in the development of affordable housing project at Karjat, Raigad District.
  • GeeCee Ventures Limited (Formerly Gwalior Chemical Industries Limited) sold of its manufacturing division in 2009, an post the transfer of the Chemical Business the name of the Company name was changed to GeeCee Ventures Limited.

GeeCee Ventures : Price Trend, Summary of Financials

Financial Overview

Market Cap- Rs. Cr255
CMP in Rs.117.5
Revenue FY18 – cr 200.97 
Net profit-cr31.93
Equity Share Capital21.73
Face Value10
EPS13.84
Price / Earning (PE)8.23
Book Value201.32
Price / BV0.58
ROCE %8.23%
ROE  %7.97%
Dividend Yield1.20%
Sales 3 yr CAGR68.01%
Debt / Equity Ratio0
52 week High/Low162.00 / 100.00


Assessment: GeeCee Ventures

  • Geecee ventures came out with a buyback in 2009-10, which was for 16.41% of its equity and was for 48.6 core which was much larger than present issue. The acceptance ratio in the issue was 18.2%.
  • Geecee ventures announced flat results for Q4FY19.
  • Geecee ventures is a debt free company
  • Promoter holding in Geecee ventures is about 67%
  • Stock is trading at 0.58 times its book value .
  • Due to smaller size of issue , Geecee Ventures buyback does not require postal ballot and the Record date has already been announced resulting in shorter buyback period.
  • Geecee ventures is a very small cap making it vulnerable to price fluctuation.

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. Further the data in the post is prone to errors.