CDGS Stock CL Educate Declares Share Buyback of Rs 15 Cr At 25% Premium

CL Educate is a small cap Consumer Discretionary company which deals in the education sector. The company has declared buyback of 15,95,744 shares aggregating up to Rs.15 Crore at Rs.94/per share via an open market deal. At the current market price, the buyback offer implies a premium of 25% over the stock's current market price of Rs 75.

The company must use at least Rs. 11.25 crores, or 75%, of the amount authorised as the maximum buyback size for the buyback. The minimum amount of equity shares the company would buy is 11,96,809, based on its minimum buyback size and maximum buyback price.

"The Board approved a proposal for the Company to Buyback its own fully paid-up Equity Shares of face value of Rs. 5/- each from the equity shareholders of the Company (other than the Promoters, members of the Promoter Group and Persons in Control of the Company), being 5.19% and 5.12% of its total paid-up capital and free reserves as on March 31, 2023 on Standalone and Consolidated basis respectively, for an amount, payable in cash, aggregating up to Rs.15 Crore (Rupees Fifteen Crores Only) ("Maximum Buyback Size") which is less than 10% of the aggregate of the total paid-up equity share capital and free reserves (including securities premium) of the Company, based on the latest audited financial statements of the Company as at March 31, 2023 on a Standalone and Consolidated basis, for a price not exceeding Rs.94/- (Rupees Ninety Four Only) - per Equity Share ("Maximum Buyback Price") from open market through the stock exchange(s), in accordance with the provisions of the Securities and Exchange Board of India (BuyBack of Securities) Regulations, 2018 (as amended) ("Buyback Regulations) and the Companies Act, 2013 and the rules made thereunder ("Buyback^TM)," said CL Educate in a stock exchange filing.

"Subject to the market price of the Equity Shares being equal to or less than the Maximum Buyback Price, the indicative maximum number of Equity Shares bought back would be 15,95,744 (Fifteen Lakhs Ninety Five Thousand Seven Hundred Forty-Four) Equity Shares ("Maximum Buyback Shares"), comprising approximately 2.90% of the no. of equity shares in the paid-up equity share capital of the Company as of March 31, 2023 (on a standalone basis), and as of date.

If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the Maximum Buyback Shares, but will always be subject to the Maximum Buyback Size. The Company shall utilise at least 75% of the amount earmarked as the Maximum Buyback Size for the Buyback i.e. Rs.11.25 Crores (Rupees Eleven Crores Twenty Five Lacs only) ("Minimum Buyback Size"). Based on the Minimum Buyback Size and Maximum Buyback Price, the Company would purchase a minimum of 11,96,809 (Eleven Lakhs Ninety Six Thousand Eight Hundred Nine) Equity Shares," said CL Educate in a stock exchange filing.

The company recorded a net income of Rs 92.24 Cr up by 29.58% YoY from Rs 71.18 Cr reported in Q1FY23. The company's net profit stood at Rs 5.47 Cr in the quarter ended June 2023 down by 53.87% YoY from Rs 11.86 Cr reported in the quarter ended June 2022. Its EPS was Rs 0.99 in Q1FY24 compared to Rs 2.10 in Q1FY23.

On Thursday, the shares of CL Educate opened on the BSE at Rs 76.85 apiece while writing this copy the stock was trading at Rs 76. The stock made a 52-week-high of Rs 94.95 on (01/09/2022) and a 52-week-low of Rs 48.80 on (28/03/2023).