In this article, we will discuss the Aarti Drugs Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity and its impact on the company.

To track the real time share price of this Buyback, click on this link – https://top10stockbroker.com/share-price/aarti-drugs-share-price/

Aarti Drugs Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening DateAPRIL 27, 2021
Buyback Closing DateMAY 10, 2021
Buyback Offer AmountRs.60,00,00,000/-
Buyback No. of Shares6,00,000
Face ValueRs. 10/-
Date of Buyback ApprovalMarch 19, 2021
Date of Public AnnouncementMarch 22, 2021
Buy Back Price Rs.1000/-
Buy Back Premium45.04%

Aarti Drugs Buyback Opening and Closing Date

The starting and closing dates of this buyback are from APRIL 27, 2021 to MAY 10, 2021.

Aarti Drugs Buyback Cash Offer

The Cash Offer to Buy-back up to 6,00,000 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing up to 0.64% of the total number of issued, subscribed and paid up Equity Shares of the Company

Aarti Drugs Buyback Record Date

The decided record date is Thursday, April 01, 2021.

Aarti Drugs Buyback Price

At a price of Rs.1000/- per Equity Share.

Aarti Drugs Buyback Size

The Buyback is for an aggregate amount not exceeding Rs.60,00,00,000/-


Aarti Drugs Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%2001,000200000574908.07%
40%4001,00040000011498016.14%
60%6001,00060000017247024.20%
80%8001,00080000022996032.27%
100%10001,000100000028745040.34%

Profit is calculated from 15 April, 2021 share price i.e. Rs.712.55 per share of Aarti Drugs Limited.

According to the above table, if a share owner applies for 1000 shares of Aarti Drugs Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.1000 per share & receive Rs.57490 as profit amount & 8.07% profit percentage on selling these 200 shares back to the company.

Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.1000 & receive a profit of Rs.172470 @ 24.20% profit percentage.


Aarti Drugs Limited Buyback Overview

AARTI DRUGS LIMITED buybackAarti Drugs Limited is a manufacturer of bulk drugs in some of the popular therapeutic groups as also specialty chemicals. It exports to various countries worldwide. The Company has a comprehensive product portfolio with a presence in anti-biotic, anti-protozoal, anti-inflammatory, anti-fungal, anti-diabetic, cardio-protectant, vitamins, antiarthritis, sedatives therapeutic groups.

The Company has developed various products in Lifesaving and Lifestyle related diseases. Its core competence lies in the development of cost effective synthesis routes for bulk drugs and intermediates. The Company has transformed into eleven multi-location, some of them are GMP compliant with state – of the art facilities.

With nine manufacturing locations located at Tarapur (Maharashtra) and Two manufacturing locations located at Sarigam (Gujarat), the Company is capable of making over 40 products comprising of bulk actives, key intermediates and specialty chemicals.

The Company has also got approvals from various authorities such as WHO-GMP, ACCREDITATION from JAPAN, IDL China, ANVISA, TGA Australia, COFEPRIS and COS.


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Company Finances – Aarti Drugs Limited

The salient financial information of the Company as extracted from the audited  consolidated financial statements for the half year ended September 30, 2020 and preceding three financial years being March 31, 2020, March 31, 2019 and March 31, 2018 are as under:

(Rs in Lakhs)

ParticularsFor the six months
ended on
September 30,
2020
For the year
ended March 31,
2020
For the year
ended March
31, 2019
For the year
ended March 31,
2018
Total Income99,221.141,63,598.321,46,053.051,16,082.97
Total Expenses76,563.621,39,051.381,25,495.5797,781.33
Finance Cost1,337.193,220.263,755.763,300.69
Depreciation2,389.344,666.894,039.343,779.90
Profit before tax18,930.9917,497.4712,762.3811,221.06
Profit /(Loss) after tax14,280.9913,567.478,725.817,341.06
Equity Share Capital2,330.002,330.002,358.212,358.21
Other Equity74,130.0359,849.0549,499.4340,959.03
Networth75,885.7861,604.8051,243.8842,802.36
Total Debt37,452.2036,881.3847,051.3151,700.64

Aarti Drugs Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesMarch 19, 2021
Date of publication of Public Announcement for the Buy-backMarch 23, 2021
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersApril 01, 2021
Buy-back opens on / Buy-back Opening DateApril 27 2021
Buy-back closes on / Buy-back Closing DateMay 10, 2021
Last date of verification by Registrar to Buy-backMay 19, 2021
Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-backMay 19, 2021
Last date of settlement of bids on the Stock ExchangeMay 20, 2021
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / BrokerMay 20, 2021
Last date of extinguishment of Equity Shares bought backMay 27, 2021


Necessity of Aarti Drugs Limited Buyback

The Buyback is being proposed by the Company to service the equity more efficiently. Additionally, the Company’s management strives to increase equity shareholders value and the Buyback would result in amongst other things:

a) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;

b) The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base, thereby leading to long term increase in shareholders’ value;

c) The Buyback gives an option to the shareholders holding Equity Shares of the Company, either to sell their Equity Shares and receive cash or not to sell their Equity Shares and get a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment; and

d) The Buyback, which is being implemented through the tender offer as prescribed under the Buyback Regulations, would involve minimum reservation of 15% for Small Shareholders and allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the Small Shareholders. The Company believes that this reservation for Small Shareholders would benefit a large number of public shareholders, who would get classified as Small Shareholder.


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Impact of Aarti Drugs Limited Buyback on the Company

We believe that the Buyback is not likely to cause any material impact on the profitability / earnings of the Company except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.

The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.

The debt-equity ratio immediately on completion of Buyback shall be in compliant with the permissible limit of 2:1 prescribed under the Act even if the response to the Buyback is 100% (full acceptance) from all the Eligible Sellers in proportion to their respective Buyback Entitlement.

Salient financial parameters consequent to the Buyback based on the audited standalone and consolidated financial statements for the year ended on March 31, 2018 are as under:

Parameters (based on audited standalone financial statements for September 30, 2020)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in lakhs)61,604.8055,604.80
Return on Net worth (%)22.02%24.40%
Earnings Per Share (Rs)58.1259.77
Book Value per Share (Rs)264.40244.96
Price / Earnings Ratio (P/E)**8.648.40
Debt/ Equity ratio0.600.67

Basis of Calculating Aarti Drugs Buyback Price

The Buyback Price of Rs.1,000/- per Equity Share has been arrived at after considering various factors including, but not limited to, the trends in the volume weighted average price and closing price of the equity shares on the BSE Limited (‘BSE’) and National Stock Exchange of India Limited (‘NSE’).

The Buyback Price represents:

a) Premium of 45.04 % and 45 % over the closing price of the Equity Shares on BSE and NSE, respectively, as on March 16, 2021 being the date on which the Company intimated to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.

b) Premium of 45.58 % and 45.89% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during the two weeks preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.

c) Premium of 49.37% and 48.11% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during the 30 trading days preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.

d) Premium of 43.70% and 43.11% over the volume weighted average market price of the Equity Shares on BSE and NSE, respectively, during the 60 trading days preceding the date of intimation to the Stock Exchanges of the date of the meeting of the Board of Directors wherein the proposal of Buyback was considered.


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Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback would be ₹60,00,00,000/-, excluding Transaction Cost.

The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback Regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.

The funds for the Buyback will be sourced from the cash and cash equivalents and/or accumulated internal accruals and no borrowings are made to discharge the Buyback obligations. However, if required, the Company may borrow funds in the ordinary course of its business.

The Company shall transfer from its free reserves a sum equal to the nominal value of the equity shares purchased through the Buyback to the Capital Redemption Reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statement.


Aarti Drugs Limited – Manager to the Buyback

INGA VENTURES PRIVATE LIMITED
1229, Hubtown Solaris, N.S. Phadke Marg,
Opp. Telli Galli, Andheri (East), Mumbai 400069
Tel. No.: +91 022 26816003, Fax: +91 022 26816020;
Contact Person: Kavita Shah;
Email: kavita@ingaventures.com;
Website: www.ingaventures.com;
SEBI Registration No: INM000012698;
Validity Period: Permanent
CIN: U67100MH2018PTC318359

Aarti Drugs Limited – Registrar to the Buyback

LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, LBS Marg, Vikhroli (West), Mumbai -400083
Tel. No.: +91 22 49186200;
Fax: +91 22 49186195;
Contact person: Mr. Sumeet Deshpande
Email: aartidrugs.buyback2021@linkintime.co.in;
Website: www.linkintime.co.in
SEBI Registration No: INR000004058;
Validity Period: Permanent
CIN: U67190MH1999PTC118368

Aarti Drugs Limited Contact Details

Company Contact Details
AARTI DRUGS LIMITED
Registered Office: Plot No. – N-198, M.I.D.C., Village – Pamtermbhi, Taluka & Dist. Palghar – 401 506, Maharashtra;
Corporate Office: Mahendra Industrial Estate, Ground Floor, Plot No. 109-D, Road No. 29, Sion (East), Mumbai – 400 022, Maharashtra
Corporate Identity Number (CIN): L37060MH1984PLC055433;
Tel. No.: +91 22 2404 8199; Fax: +91 22 2407 3462; Email: investorrelations@aartidrugs.com; Website: www.aartidrugs.co.in;
Contact Person: Rushikesh Deole, Company Secretary & Compliance Officer
Offer to Buyback up to 6,00,000 (Six Lakhs) fully paid-up equity shares of the Company of face value of

 


Aarti Drugs Limited Buyback News

News 1 – Buyback PDF / Letter of Offer [Download]


FAQs of Aarti Drugs Buyback

What is the Aarti Drugs Buyback Period?

Aarti Drugs Buyback Period is briefly the time interval starting from date of declaration of results of the postal ballot through remote e-voting i.e. March 22, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. 20, 2021.

What type of buyback is Aarti Drugs Buyback?

This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.

What is the Aarti Drugs Buyback Offer?

Aarti Drugs Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 6,00,000 Fully paid up Equity shares, adhering to the buyback price.

When Aarti Drugs Buyback offer will start?

As per the released schedule, the Aarti Drugs Buyback offer will start on April 27 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Aarti Drugs Buyback at all times, we ensure you have access to the right data.

When is the closing date of Aarti Drugs Buyback?

For the ease in access to the dates and related aspects, we have segregated the closing date of Aarti Drugs Buyback. The buyback would stay open from April 27 2021, and would close on May 10, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.

What is the offer price for Aarti Drugs Buyback?

The amount at which the shares are taken back by the company is referred to as Aarti Drugs Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.1000, the price paid to each eligible shareholder.

What is the record date for Aarti Drugs Buyback offer?

Record date of Aarti Drugs Buyback is April 01, 2021. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.

What is the issue size of Aarti Drugs Buyback?

Aarti Drugs Buyback Size is Rs.60,00,00,000 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.

What is the necessity for Aarti Drugs Buyback?

Objective of the Aarti Drugs Buyback is to enhance the total return made by equity shareholders. Herein, the excessive funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, company will distribute the surplus cash to shareholders as per their holding proportion.

Who is the Registrar to Aarti Drugs Buyback offer?

Designated registrar of Aarti Drugs Buyback is LINK INTIME INDIA PRIVATE LIMITED. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.

Who is the Manager to the Aarti Drugs Buyback offer?

Manager to the Aarti Drugs Buyback is INGA VENTURES PRIVATE LIMITED. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.

How to check Aarti Drugs buyback acceptance ratio?

Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.

Where to find Aarti Drugs Buyback Dates / Events?

You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the Aarti Drugs Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Aarti Drugs Buyback Dates.

What can be the Impact of Aarti Drugs Buyback on the Company?

The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations.

Post completion of the Buyback, the debt-equity ratio of the Company, both on a standalone basis and a consolidated basis shall be in compliant with the permissible limit of 2:1 prescribed under the Companies Act and Buyback Regulations.

Where to find complete details on Aarti Drugs Buyback?

As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.


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