Shanthi Gears Limited

Shanthi Gears Limited, a subsidiary of Tube Investments of India, is a pioneer in gear manufacturing and ranks amongst India's top gear manufacturers today. For over four decades now, Shanthi Gears has been the preferred name for gear and gearbox solutions, for some of the biggest names in the industry. They offer a comprehensive range of products and services with cutting edge gear solutions for a wide range of applications and specialised gear reconditioning services. They have 4 factories and 1000+ Employees. # The retail holding (Upto 1 lakh) in Shanthi Gears was 13.28% (as on September 30, 2018)# 15% reservation for the buyback of 6.12% of paid-up equity implies at least 0.918% of paid up equity will be bought from retail investors# Acceptance ratio = 0.918/13.28 = 6.9% (as on September 30, 2018) The financials of the company looks very good, RoCE is 14.75% and at CMP its looks fully priced. There is very little difference between CMP (Rs 133) and Buyback Price (Rs 140), so if stock price falls around 120 to 125, than one may go for buy. So we give NEUTRAL rating to this buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal