Ajanta Pharma Buyback – Review, Offer Details, Price, Dates, Size & more

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.

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

Ajanta Pharma Buyback Details

Buyback TypeTender Offer
Buyback Opening DateDecember 3, 2020
Buyback Closing DateDecember 16, 2020
Buyback Offer AmountRs. 135,97,50,000/-
Buyback No. of Shares7,35,000
Face ValueRs. 2/-
Date of Buyback ApprovalNovember 3, 2020
Date of Public AnnouncementNovember 4, 2020
Buy Back Price Rs. 1,850/-
Buy Back Premium16.80%
Date of Board MeetingNovember 3, 2020

Ajanta Pharma Buyback Opening and Closing Date

The starting and closing dates of this buyback are from December 3, 2020 to December 16, 2020.

Ajanta Pharma Buyback Cash Offer

The Cash Offer to Buy-back up to 7,35,000 (SEVEN LAKH THIRTY FIVE THOUSAND) 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, NOVEMBER 13, 2020.

Ajanta Pharma Buyback Price

At a price of Rs.1,850/- (RUPEES ONE THOUSAND EIGHT HUNDRED AND FIFTY ONLY) per equity share.

Ajanta Pharma Buyback Size

The Buyback is for an aggregate amount not exceeding Rs. 135,97,50,000(Rupees ONE HUNDRED THIRTY FIVE CRORES NINETY SEVEN LAKHS AND FIFTY THOUSAND ONLY).


Ajanta Pharma 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%2001850370000660004.34%
40%40018507400001320008.68%
60%6001850111000019800013.03%
80%8001850148000026400017.37%
100%10001850185000033000021.71%

Profit is calculated from 27th November 2020 share price i.e. Rs.1520 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.1850 per share & receive Rs.66000 as profit amount & 4.34% 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.1850 & receive a profit of Rs.198000 @ 13.03% 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.

This 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, 2020, March 31, 2019 and March 31, 2018 and limited review financial results for six months period ended September 30, 2020 is detailed below:

(Rs.in Crore)

Key FinancialsSeptember 30,
2020
March 31,
2020
March
31, 2019
March
31, 2018
(Limited Review)(*Audited)(Audited)(Audited)
Revenue from Operations1,237.362,196.421,772.621,830.45
Other Income99.34184.2102.1573.01
Total Income1,336.702,380.621,874.771,903.46
Total Expenses (excluding
finance cost & depreciation)
813.091663.641291.411,283.64
Finance Cost2.559.100.410.24
Depreciation and amortization
expenses
54.0691.2969.957.14
Exceptional Items: Expense /
(Income)
0.00(3.92)0.000.00
Profit Before Tax467.00612.67513.05562.44
Tax Expenses126.09171.54121.29134.92
Profit/(Loss) discontinuing
operation
0.00*0.000.000.00
Profit After Tax340.91441.13391.76427.52
Paid-up Equity Share Capital17.5417.54*17.5417.69
Other Equity, excluding
revaluation reserves & Misc.
expenditures to the extent not
written off
2783.742,443.762,124.541,913.81
Net worth, excluding
revaluation reserves & Misc.
expenditures to the extent not
written off
2,801.282,461.302,142.081,931.50
Total Debt0.000.00*0.000.00

Ajanta Pharma Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesNovember 3, 2020
Date of publication of Public Announcement for the Buy-backNovember 5, 2020
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersNovember 13, 2020
Buy-back opens on / Buy-back Opening DateDecember 3, 2020
Buy-back closes on / Buy-back Closing DateDecember 16, 2020
Last date of verification by Registrar to Buy-backDecember 22, 2020
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-backDecember 23, 2020
Last date of settlement of bids on the Stock ExchangeDecember 23, 2020
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / BrokerDecember 24, 2020
Last date of extinguishment of Equity Shares bought backDecember 30, 2020

 


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 (EPS), return on equity (ROE) and return on capital employed (ROCE);
  • The Buyback will help in achieving optimal capital structure;
  • 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 2(i)(n) of the Buyback Regulations;
  • The Buyback gives an option to the Equity Shareholders to either, (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or (ii) they may choose not to participate and enjoy a resultant increasein their percentage shareholding, post the Buyback offer, without any additional investment.

Impact of Ajanta Pharma Limited Buyback on the Company

The Company believes that 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.

This shall impact the investment income earned by the Company, on account of reduced amount of funds available for investments.

The Company believes that 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. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company.

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, 2020 of the Company are as under:

ParametersStandaloneConsolidated
Pre-
Buyback
Post-
Buyback
Pre-
Buyback
Post-
Buyback
Net worth (Rs. in Crores)2,461.302,325.332,598.872,462.90
Return on Net worth (%)17.92%18.97%18.00%18.99%
Basic Earnings Per Share (Rs.) (of Rs. 2 each)50.5550.9853.6054.06
Book Value per Share (Rs)282.06268.74297.83284.64
Price earning ratio27.0326.8025.4925.28
Total Debt/ Equity Ratio0.000.000.020.02

Basis of Calculating Ajanta Pharma Buyback Price

The Buyback price of Rs.1,850/- (Rupees One Thousand Eight Hundred Fifty 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.1,850/- (Rupees One Thousand Eight Hundred Fifty only) per Equity Share represents:

  • Premium of 16.80% on BSE and 16.72%% 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;
  • The premium of 17.40% on BSE and 17.29% 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 16.39% on BSE and 16.23% 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, 2020 (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, Maharashtra, India
Contact Person: Mr. Priyankar Shetty / Ms. Nikita Somani
Tel: +91 (22) 7143 2206
Fax: +91 (22) 7143 2270
Email: apl.buyback@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, Lal Bahadur Shastri 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.buyback2020@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 – letter of offer PDF [Download]


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