As per the current shareholding pattern, the promoters hold 83,02,908 equity shares representing 33.72 per cent of equity capital. Assuming 100 per cent response to the offer and if all the shares tendered in response to the offer are accepted in full, the promoters holding in the company would go upto 44.96 per cent of the equity capital, according to the draft offer document.
Post buy back, the cumulative holding of financial institutions, mutual funds, Indian public and foreign Institutional Investors (FIIs) would go up to 55.04 per cent. Currently, FIs holding in the company is around 25.37 per cent, FIIs 12.14 per cent and public holding is 28.77 per cent. The company is going for the buyback to provide an exit option for investors and realise their value for share. It would also improve returns to the shareholders and enhance shareholders value.
Currently, the paid up equity capital of the company consists of 2,46,23,076 fully paid equity shares of face value Rs 10 each aggregating Rs 24.62 crore.
The buy-back programme would be funded solely from its internal Accruals. The company has appointed ICICI Securities as the managers to the offer and Karvy Consultants as registrars to the offer.
A minimum amount of Rs 61.56 crore is required for the buy-back and the same is proposed to be financed entirely out of internal Accruals. This amount shall not exceed 25 per cent of the paid up share capital and free reserves of the company as of March 31, 2002, the draft offer document said.
TI is the flagship company of the Chennai-based Murugappa group and is into the manufacturing of precision tubes, strips, bicycles among others. The company has clocked a turnover of Rs 1,078.84 crore during the fiscal ended March 22 and booked a profit of Rs 36.27 crore.