JMA approves Rs 22.40 crore buyback; promoters will not tender

Jullundur Motor Agency (Delhi) Limited approved on November 12, 2026 a Rs 22.40 crore tender-offer buyback of up to 20 lakh equity shares at Rs 112 each, while its promoter and promoter group stated that they intend not to participate. JMA set November 18, 2026 as the record date for shareholder eligibility.

What did JMA approve in the buyback?

JMA approved the repurchase of up to 20 lakh fully paid equity shares, each with a face value of Rs 2, at Rs 112 per share. The maximum purchase consideration is Rs 22.40 crore, excluding brokerage, taxes, filing fees, adviser fees, legal fees and other transaction costs.

The maximum 20 lakh shares represent about 8.76% of the 228.41 lakh equity shares implied by JMA's Rs 4.5682 crore paid-up equity share capital at September 30, 2026 and the Rs 2 face value. This percentage is a calculation from the disclosed capital figures; the filing describes the transaction as a proportionate tender offer.

JMA said the Rs 22.40 crore maximum buyback size equals 9.77% of aggregate paid-up equity capital and free reserves under its audited standalone financial statements for the year ended March 31, 2026. The corresponding proportion was 8.29% under audited consolidated financial statements, a difference of 1.48 percentage points.

How will JMA conduct the buyback?

JMA will conduct the buyback through the tender-offer route on a proportionate basis for shareholders eligible on November 18, 2026. Shareholders may tender shares during the offer period, but the number accepted can be lower than the quantity tendered because acceptance is proportionate.

JMA has not yet announced the tendering timetable as of its November 12, 2026 filing. It said the public announcement will set out the process, timelines and other required details, including the dates of the buyback offer.

JMA appointed Corporate Professionals Capital Private Limited, a Securities and Exchange Board of India registered Category I merchant banker, as manager to the buyback. It also appointed SMC Global Securities Limited as broker, MAS Services Limited as registrar and Kotak Mahindra Bank Limited as escrow agent.

The Board formed a Buyback Committee and delegated authority to take actions needed for the transaction. JMA said the offer falls within the 10% statutory limit based on paid-up equity share capital and free reserves in its audited standalone and consolidated financial statements as of March 31, 2026.

Will JMA promoters participate in the buyback?

No, JMA said its Board noted the intention of the promoter and promoter group not to participate in the proposed Rs 22.40 crore buyback. Shares accepted through the tender offer would therefore come from other eligible shareholders if the stated intention is maintained.

JMA did not disclose the promoter group's shareholding percentage, number of shares or the public shareholding in the November 12, 2026 announcement. The filing therefore does not provide a post-buyback ownership calculation or a guaranteed acceptance ratio for non-promoter shareholders.

The November 18, 2026 record date determines which holders can participate in the tender offer. The Board meeting that approved the proposal began at 12:00 p.m. and concluded at 4:35 p.m. on November 12, 2026.

Can JMA change the buyback price before the record date?

Yes, JMA's Board or Buyback Committee may increase the Rs 112 buyback price until one working day before the November 18, 2026 record date. Any increase must be accompanied by a reduction in the number of shares proposed so that the Rs 22.40 crore aggregate buyback size does not change.

At the approved Rs 112 price, the Rs 22.40 crore consideration corresponds to 20 lakh shares. A higher price would result in fewer than 20 lakh shares being bought back, although JMA has not disclosed an alternative price or revised quantity.

The disclosed authority does not allow JMA to raise the Rs 22.40 crore purchase consideration. Transaction costs, including securities transaction tax, goods and services tax, stamp duty and professional fees, remain outside the stated buyback size.

What do JMA's latest standalone results show?

JMA reported standalone revenue from operations of Rs 119.5532 crore for the quarter ended September 30, 2026, compared with Rs 109.6367 crore in the quarter ended September 30, 2025. Standalone profit after tax rose to Rs 6.7203 crore from Rs 5.8398 crore over the same quarters.

For the half year ended September 30, 2026, JMA reported standalone revenue from operations of Rs 244.5445 crore, compared with Rs 216.1028 crore a year earlier. Standalone profit before tax increased to Rs 16.7329 crore from Rs 12.9872 crore, while profit after tax increased to Rs 12.8089 crore from Rs 9.9463 crore.

JMA's standalone total assets were Rs 291.7604 crore at September 30, 2026, versus Rs 294.4493 crore at March 31, 2026. Total equity increased to Rs 239.6769 crore from Rs 233.3236 crore, while total liabilities decreased to Rs 52.0835 crore from Rs 61.1257 crore.

Conclusion

JMA has authorised a Rs 22.40 crore tender-offer buyback at Rs 112 per share, covering up to 20 lakh shares, while promoters and the promoter group have indicated they will not tender. The company also reported higher standalone half-year revenue and profit after tax for the period ended September 30, 2026 than in the corresponding prior-year period.

The next disclosed event is the November 18, 2026 record date. Investors should watch for JMA's public announcement of the tender timetable and procedure, and for any Board or Buyback Committee decision before the deadline to increase the Rs 112 price while reducing the maximum share quantity within the unchanged Rs 22.40 crore outlay.