Atul Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In 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.
To track the real time share price of this Buyback, click on this link – Atul Limited Share Price
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.
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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.
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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.
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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
FAQs of Atul Limited Buyback
What is the Atul Limited Buyback Period?
Atul Limited Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. February 10, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. August 09, 2021.
What type of buyback is Atul Limited Buyback?
This company has chosen the route of Open Market to repurchase the shares from the eligible shareholders. Open Market 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 Atul Limited Buyback Offer?
Atul Limited Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 68,965 Fully paid up Equity shares, adhering to the buyback price.
When Atul Limited Buyback offer will start?
As per the released schedule, the Atul Limited Buyback offer will start on February 10, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Atul Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of Atul Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Atul Limited Buyback. The buyback would close on August 09, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Atul Limited Buyback?
The amount at which the shares are taken back by the company is referred to as Atul Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.7,250, the price paid to each eligible shareholder.
What is the record date for Atul Limited Buyback offer?
Record date of Atul Limited Buyback is February 03, 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 Atul Limited Buyback?
Atul Limited Buyback Size is Rs.50,00,00,000 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 Atul Limited Buyback?
Objective of the Atul Limited Buyback is to enhance the total return made by equity shareholders. Herein, the excess 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, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to Atul Limited Buyback offer?
The designated registrar of Atul Limited 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 Atul Limited Buyback offer?
Manager to the Atul Limited Buyback is Vivro Financial Services 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 Atul Limited 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 Atul Limited 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 Atul Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Atul Limited Buyback Dates.
What can be the Impact of Atul Limited 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. 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. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on Atul Limited Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the 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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