Atul Limited Buyback Review, Offer Details, Price, Dates, Size & more
In this article, we will discuss about Atul Limited Buyback offer, buyback price, buyback size, Atul Buyback record date, company financial, buyback necessity and its impact on company.
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Atul Limited Buyback Details
| Buyback Type | Open Market |
| Opening Date | February 10, 2021 |
| Closing Date | August 09, 2021 |
| Buyback Offer Amount | Rs.50,00,00,000 |
| Buyback No. of Shares | 68,965 |
| Face Value | Rs.10 |
| Date of Buyback Approval | January 29, 2021 |
| Date of Public Announcement | February 01, 2021 |
| Buy Back Price | Rs.7,250/- |
| Buy Back Premium | 13.83% |
| Date of Board Meeting | January 29, 2021 |
Atul Buyback Opening and Closing Date
The starting and closing date of this buyback is from February 10, 2021 to August 09, 2021.
Atul Buyback Cash Offer
Cash Offer to Buy-back up to 68,965 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 1.88% and 1.84% of the total paid-up equity share capital and free reserves.
Atul Buyback Record Date
The decided record date is February 03, 2021.
Atul Buyback Price
At a price of Rs.7,250/- per Equity Share.
Atul Buyback Size
At a buyback price of Rs.7,250/- payable in cash for an aggregate maximum amount of Rs.50,00,00,000.
Atul Limited Buyback Acceptance Query
You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.
Atul Limited 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% | 200 | 7,250 | 1450000 | 137170 | 2.09% |
| 40% | 400 | 7,250 | 2900000 | 274340 | 4.18% |
| 60% | 600 | 7,250 | 4350000 | 411510 | 6.27% |
| 80% | 800 | 7,250 | 5800000 | 548680 | 8.36% |
| 100% | 1000 | 7,250 | 7250000 | 685850 | 10.45% |
Profit is calculated from Feb 03, 2021 share price i.e. Rs.6564.15 per share of Atul Limited.
According to the above table, if a shareowner applies for 1000 shares of Atul limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.7,250 per share & receive Rs.137170 as profit amount & 2.09% 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.7,250 & receive a profit of Rs.411510 @ 6.27% profit percentage.
Atul Buyback Overview
The Company is a diverse Indian chemical company serving customers in 90 countries with ~ 900 products and ~ 400 formulations; it owns 140 retail brands.
The Company meets the needs of its customers belonging to varied industries such as Adhesives, Aerospace, Agriculture, Animal Feed, Automobile, Chemical, Composite, Construction, Cosmetic, Defence, Dyestuff, Electrical and Electronics, Flavour, Food, Footwear, Fragrance, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings, Paper, Personal Care, Pharmaceutical, Plastic, Polymer, Rubber, Soap and Detergent, Sport and Leisure, Textile, Tyre and Wind Energy.
First manufacturing site of the Company is amongst the greenest chemical complexes in the world and one of the largest integrated chemical companies in India; it manages complex chemical processes in a responsible way.
Atul Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Crores]
| Particulars | Dec 31, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) | ||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 2,522.23 | 3,983.27 | 3,947.17 | 3,186.02 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 1,830.28 | 3,061.32 | 3,179.62 | 2,675.09 |
| Finance Cost | 1.46 | 2.35 | 3.66 | 8.90 |
| Depreciation | 88.64 | 117.06 | 111.99 | 104.78 |
| Profit before tax | 601.85 | 802.54 | 651.90 | 397.25 |
| Profit /(Loss) after tax | 461.71 | 640.17 | 428.64 | 270.41 |
| Equity Share Capital | 29.68 | 29.68 | *29.68 | 29.68 |
| Other Equity | NA | 3,040.70 | 2,619.88 | 2,167.86 |
| Networth | NA | 3,070.38 | 2,649.56 | 2,197.54 |
| Total Debt | NA | 0.00 | 0.00 | 0.01 |
Atul Limited Buyback Dates
| Date of Board Meeting approving the Buyback | January 29, 2021 |
| Date of publication of Public Announcement for Buyback | February 01, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | February 03, 2021 |
| Buyback Opening date | February 10, 2021 |
| Buyback Closing date | August 09, 2021 |
| Last Date of verification of Tender Forms by the Registrar | [•] |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | [•] |
| *Last date of Settlement of Bids on the BSE Limited | [•] |
| Last date of return of unaccepted Equity Shares by BSE Limited | [•] |
| *Last date of Extinguishment of Equity Shares |
Details of Public Announcement
This Public Announcement (the “Public Announcement”) is being made in accordance with the provisions of
Regulation 16(iv)(b) of the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as
amended (“Buy-back Regulations”) and contains the disclosures as specified in Schedule IV read with Schedule I
of the Buy-back Regulations.
Necessity of Atul Buyback
The Buy-back is being undertaken by the Company to return surplus funds to the equity shareholders of the Company. Additionally, the Company believes that the Buy-back will improve earnings per share by reduction in the equity base, thereby leading to long-term increase in the value of shareholders.
Impact of Atul Buyback on the Company
The Company believes that the Buy-back 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 might have otherwise deployed towards generating investment income.
At the Maximum Buy-back Size, the funds deployed by the Company towards the Buy-back will be Rs.50,00,00,000 /- excluding Transaction Costs.
The Buy-back of Equity Shares will not affect the existing management structure of the Company.
The Company shall not issue any Equity Shares or specified securities including by way of bonus till the date of expiry of Buy-back period. Further, the Company shall not raise further capital for a period of one year from the expiry of Buy-back period, except in discharge of its subsisting obligations.
The funds borrowed from banks and financial institutions will not be used for the Buy-back. The Company shall not buy back its shares from any person through negotiated deal whether on or off the stock exchanges or through spot transactions or through private arrangement.
The Equity Shares bought back by the Company will be compulsorily extinguished and destroyed and will not be held for re-issue at a later date. The Company is not undertaking the Buy-back to delist its equity shares from the Stock Exchanges.
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for September 30, 2020 are as under:
| Parameters (based on audited standalone financial statements for September 30, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | ||
| Return on Net worth (%) | ||
| Earnings Per Share (Rs) | ||
| Book Value per Share (Rs) | ||
| Price / Earnings Ratio (P/E)** | ||
| Total Debt / Equity Ratio |
Basis of Calculating Atul Buyback Price
The Maximum Buy-back Price is Rs.7,250/- per Equity Share. Maximum Buy-back Price has been arrived at after considering various factors, including but not limited to, the volume weighted average market price of the Equity Shares of the Company on Stock Exchanges during three months and two weeks preceding the date of the Board Meeting, closing market price on the day before the Board Meeting and the potential impact on the net worth and earnings per share of the Company.
The Maximum Buy-back Price of Rs.7,250/- per Equity Share represents:
i) a premium of 13.83% over the volume weighted average market price of the Equity Shares on NSE (the Stock Exchange where the maximum volume of trading in the Equity Shares is recorded) for three months preceding the date of the Board Meeting which was Rs.6,369.15 and
ii) a premium of 11.19% over the volume weighted average market price of the Equity Shares on NSE (the Stock Exchange where the maximum volume of trading in the Equity Shares is recorded) for two weeks preceding the date of the Board Meeting which was Rs.6,520.17. The closing market price of the Equity Shares as on the day before the Board Meeting was Rs.6,308.55 on BSE and Rs.6,303.15 on NSE. 4.3.
The Buy-back is proposed to be completed within a maximum period of six months from the date of opening of the Buy-back.
Source of Funds for the Buyback
The amount required by the Company for the Buy-back (including Transaction Costs) will be met out of the balances in free reserves, current surplus and | or cash and cash equivalents and | or internal accruals and | or liquid resources and | or such other permissible sources of funds of the Company, as per the Act and the Buy-back Regulations.
Atul Limited – Manager to the Buyback
| Vivro Financial Services Private Limited Vivro House, 11 Shashi Colony Opposite Suvidha Shopping Center Paldi, Ahmedabad 380 007, Gujarat, India Phone: (+91 79) 40404242 | Fax no.: (+91 79) 26650570 Contact person: Mr Harish Patel | Mr Bhargav Parekh E-mail: investors@vivro.net | Website: www.vivro.net SEBI registration no.: INM000010122 | Validity: permanent | CIN: U67120GJ1996PTC029182 |
Atul Ltd – Registrar to the Buyback
Link Intime India Private Limited 506-508 Amarnath Business Centre – 1 Umashankar Joshi Marg, off C G Road Ahmedabad 380 006, Gujarat, India Phone: (+91 79) 26465179 | 86 | 87 Contact person: Mr Nilesh Dalwadi E-mail: nilesh.dalwadi@linkintime.co.in | Website: www.linkintime.co.in SEBI registration no.: INR000004058 | CIN: U67190MH1999PTC118368 |
Atul Ltd Contact Details
| Company Contact Details |
| Atul Limited Corporate identification number (CIN): L99999GJ1975PLC002859 |
Atul Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – Atul Ltd – Public Announcement
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