In this article, we will discuss the Ajanta Pharma Limited Buyback offer, buyback price, buyback size, Ajanta Pharma Buyback record date, company financial, buyback necessity and its impact on the company.
Ajanta Pharma Buyback Details
| Buyback Type | Tender Offer |
| Buyback Opening Date | February 28, 2019 |
| Buyback Closing Date | March 14, 2019 |
| Buyback Offer Amount | Rs. 100,00,00,000/- |
| Buyback No. of Shares | 7,69,230 |
| Face Value | Rs. 2/- |
| Date of Buyback Approval | January 30, 2019 |
| Date of Public Announcement | January 31, 2019 |
| Buy Back Price | Rs. 1,300/- |
| Buy Back Premium | 15.31% |
Ajanta Pharma Buyback Opening and Closing Date
The starting and closing dates of this buyback are from February 28, 2019, to March 14, 2019.
Ajanta Pharma Buyback Cash Offer
The Cash Offer to Buy-back up to 7,69,230 (Seven lakhs sixty-nine thousand two hundred thirty only) fully paid-up equity shares of the Company of face value of Rs. 2 each.
Ajanta Pharma Buyback Record Date
The decided record date is Tuesday, February 12, 2019.
Ajanta Pharma Buyback Price
At a price of Rs. 1,300/- (Rupees One thousand three hundred only) per Equity Share.
Ajanta Pharma Buyback Size
The Buyback is for an aggregate amount not exceeding Rs. 100,00,00,000 (Rupees one hundred crores only).
Ajanta Pharma Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate. The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | |||||
| 40% | |||||
| 60% | |||||
| 80% | |||||
| 100% |
Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of Ajanta Pharma Limited.
According to the above table, if a share owner applies for 1000 shares of Ajanta Pharma Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.56 per share & receive Rs.370 as profit amount & 0.68% 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.56 & receive a profit of Rs.1,110 @ 2.05% profit percentage.
Ajanta Pharma Limited Buyback Overview
The Company is a specialty pharmaceutical formulation company engaged in the development, manufacture and marketing of qualified finished dosages.
The Company is focused on the branded generics market in India, Asia and Africa, generics market in USA besides Institutional segment in Africa.
The Company has seven (7) manufacturing facilities in India and Mauritius of which two (2) facilities in India have been approved by US FDA.
The Company also has a research and development centre for finished formulations and active pharmaceutical ingredient synthesis of different dosage forms.
The Equity Shares of the Company are listed on BSE and NSE since June 5, 2000 and May 29, 2000. The ISIN of the Equity Shares is INE031B01049.
Company Finances – Ajanta Pharma Limited
The salient financial information of the Company, as extracted from the audited standalone financial statements for years ended March 31, 2018, March 31, 2017 and March 31, 2016 and limited review financial results for nine months period ended December 31, 2018 is detailed below:
(Rs.in Crore)
| Key Financials | December 31, 2018 (9M) | March 31, 2018 | March 31, 2017 | March 31, 2016 |
| (Limited Review) | (Audited) | (Audited) | (Audited) | |
| Revenue from Operations | 1,359.09 | 1,830.45 | 1,822.71 | 1,573.60 |
| Other Income | 98.96 | 73.01 | 66.95 | 86.87 |
| Total Income | 1,458.05 | 1,903.46 | 1,889.66 | 1,660.47 |
| Total Expenses (excluding finance cost & depreciation) | 945.10 | 1,283.64 | 1,188.29 | 1,051.04 |
| Finance Cost | 0.21 | 0.24 | 1.24 | 4.19 |
| Depreciation and amortization expenses | 51.70 | 57.14 | 59.48 | 42.68 |
| Exceptional Items: Expense / (Income) | – | – | – | – |
| Profit Before Tax | 461.04 | 562.44 | 640.65 | 562.56 |
| Tax Expenses | 110.65 | 134.92 | 140.84 | 140.61 |
| Profit/(Loss) discontinuing operation | – | – | – | – |
| Profit After Tax | 350.39 | 427.52 | 499.81 | 421.95 |
| Paid-up Equity Share Capital | 17.69 | 17.69 | 17.69 | 17.69 |
| Other Equity, excluding revaluation reserves & Misc. expenditures to the extent not written off | 2,184.15 | 1,913.81 | 1,486.25 | 1,114.01 |
| Net worth, excluding revaluation reserves & Misc. expenditures to the extent not written off | 2,201.84 | 1,931.50 | 1,503.94 | 1,131.70 |
| Total Debt | – | – | – | 68.08 |
Ajanta Pharma Buyback Dates
| Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares | Wednesday, January 30, 2019 |
| Date of publication of Public Announcement for the Buy-back | Friday, February 1, 2019 |
| Record Date for determining the Buy-back Entitlement and the Eligible Shareholders | Tuesday, February 12, 2019 |
| Buy-back opens on / Buy-back Opening Date | Thursday, February 28, 2019 |
| Buy-back closes on / Buy-back Closing Date | Thursday, March 14, 2019 |
| Last date of verification by Registrar to Buy-back | Tuesday, March 19, 2019 |
| 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-back | Wednesday, March 20, 2019 |
| Last date of settlement of bids on the Stock Exchange | Friday, March 22, 2019 |
| Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker | Friday, March 22, 2019 |
| Last date of extinguishment of Equity Shares bought back | Thursday, March 28, 2019 |
Necessity of Ajanta Pharma Limited Buyback
The Company’s management strives to increase the Shareholders’ value and the Buyback would result in following:
- The Buyback would help in improving earnings per share, return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value;
- The Buyback will help in achieving optimal capital structure;
- The Buyback will help the Company to distribute surplus cash to the Shareholders broadly in proportion to their shareholding, thereby, enhancing their overall return;
- The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve allocation of number of shares as per the entitlement of the shareholders or 15% of the number of Equity Shares to be bought back whichever is higher, 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” as per Buyback Regulations;
- The Buyback gives an option to the members holding equity shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without any additional investment.
Impact of Ajanta Pharma Limited Buyback on the Company
We believe the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company except a reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
The debt-equity ratio post Buyback will be compliant with the permissible limit of 2:1 prescribed by Section 68 of the Companies Act and Regulation 4(ii) of the Buyback Regulations, even if the response to the Buyback is to the extent of 100% (full acceptance).
Salient financial parameters consequent to the Buyback based on the audited standalone and consolidated financial statements as on March 31, 2018 of the Company are as under:
| Parameters | Standalone | Consolidated | ||
| Pre- Buyback | Post- Buyback | Pre- Buyback | Post- Buyback | |
| Net worth (Rs. in Crores) | 1,931.50 | 1,831.50 | 2,041.37 | 1,941.37 |
| Return on Net worth (%) | 22.13% | 23.34% | 22.96% | 24.14% |
| Basic Earnings Per Share (Rs.) (of Rs. 2 each) | 48.59 | 49.01 | 53.26 | 53.72 |
| Book Value per Share (Rs) | 219.45 | 209.93 | 231.94 | 222.52 |
| Price earning ratio | 28.61 | 28.37 | 26.10 | 25.88 |
| Total Debt/ Equity Ratio | 0.00 | 0.00 | 0.00 | 0.00 |
Basis of Calculating Ajanta Pharma Buyback Price
The Buyback price of Rs. 1,300/- (Rupees One Thousand Three Hundred only) per Equity Share has been arrived at after considering various factors such as the average closing prices of the Equity Shares on the Stock Exchanges where the Equity Shares of the Company are listed, the net-worth of the Company and the impact of the Buyback on the key financial ratios of the Company.
More on Ajanta Pharma Buyback Price Calculation
The Buyback Offer Price of Rs. 1,300/- (Rupees One Thousand Three Hundred only) per Equity Share represents:
- Premium of 16.51% on BSE and 16.45% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE respectively for 3 months preceding the date of intimation to the BSE and NSE for the Board Meeting to consider the proposal of the Buyback;
- Premium of 12.25% on BSE and 12.23% on NSE over the volume weighted average price of the equity Shares on BSE and NSE respectively for 2 weeks preceding the date of intimation to the BSE and NSE for the Board Meeting to consider the proposal of the Buyback;
- Premium of 15.31% on BSE and 15.37% on NSE over the closing market price of the Equity Shares on BSE and NSE as on the date of the intimation to BSE and NSE for the Board Meeting to consider the proposal of the Buyback.
Source of Funds for the Buyback
The Buyback shall be made out of the free reserves of the Company as at March 31, 2018 (i.e. the last audited financial statements available as on the date of Board Meeting recommending the proposal of 19 the Buyback).
The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and the details of such transfer shall be disclosed in its subsequent audited balance sheet.
The funds for the Buyback will be met out of internally generated cash resources of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Accordingly, borrowed funds will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.
Ajanta Pharma Limited – Manager to the Buyback
| INDUSIND BANK LIMITED 11th Floor, One India Bulls Centre, Tower 1, 841 Senapati Bapat Marg, Elphistone Road, Mumbai – 400 013 Contact Person: Mr. Rahul Joshi Tel: +91 (22) 7143 2208 Fax: +91 (22) 7143 2270 Email: investmentbanking@indusind.com Website: www.indusind.com SEBI Registration Number.: INM000005031 Validity Period: Permanent CIN: L65191PN1994PLC076333 |
Ajanta Pharma Limited – Registrar to the Buyback
| LINK INTIME INDIA PRIVATE LIMITED C-101, 1st Floor, 247 Park, L.B.S Marg, Vikhroli (West), Mumbai 400 083 Maharashtra, India Contact Person: Mr. Sumeet Deshpande Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 E-mail: ajantapharma.buyback@linkintime.co.in Website: www.linkintime.co.in SEBI Registration Number: INR000004058; Validity Period: Permanent CIN: U67190MH1999PTC118368 |
Ajanta Pharma Limited Contact Details
| Company Contact Details |
| AJANTA PHARMA LIMITED Registered & Corporate Office: ‘Ajanta House’, 98 Govt Industrial Area, Charkop, Kandivli (West), Mumbai – 400 067, Maharashtra, India CIN: L24230MH1979PLC022059 Contact Person: Mr. Gaurang Shah, Company Secretary Tel: +91 22 6606 1000 | Fax: +91 22 6606 1200 Email: investorgrievance@ajantapharma.com | Website: www.ajantapharma.com |
Ajanta Pharma Limited Buyback News
News 1 – Buyback PDF [Download]
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