Bharat Rasayan Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022*In this article, we will discuss about Bharat Rasayan Limited Buyback offer, buyback price, buyback size, Bharat Rasayan 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 – Bharat Rasayan Share Price
Bharat Rasayan Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | March 26, 2021 |
| Closing Date | April 12, 2021 |
| Buyback Offer Amount | Rs. 1,07,49,28,000 |
| Buyback No. of Shares | 93,472 |
| Face Value | Rs.10 |
| Date of Buyback Approval | January 12, 2021 |
| Date of Public Announcement | February 19, 2021 |
| Buy Back Price | Rs. 11,500 |
| Buy Back Premium | 23.07% |
| Date of Board Meeting | January 12, 2021 |
Bharat Rasayan Buyback Opening and Closing Date
The starting and closing date of this buyback is from March 26, 2021 to April 12, 2021.
Bharat Rasayan Buyback Cash Offer
Cash Offer to Buy-back up to 93,472 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 2.20% of the total paid-up equity share capital of the company.
Bharat Rasayan Buyback Record Date
The decided record date is March 5, 2021.
Bharat Rasayan Buyback Price
At a price of Rs. 11,500 per Equity Share.
Bharat Rasayan Buyback Size
At a buyback price of Rs. 11,500 payable in cash for an aggregate maximum amount of Rs.1,07,49,28,000.
Bharat Rasayan 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.
Bharat Rasayan 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 (Rs) | Profit% |
| 20% | 200 | 11,500 | 2300000 | 371200 | 3.85% |
| 40% | 400 | 11,500 | 4600000 | 742400 | 7.70% |
| 60% | 600 | 11,500 | 6900000 | 1113600 | 11.55% |
| 80% | 800 | 11,500 | 9200000 | 1484800 | 15.40% |
| 100% | 1000 | 11,500 | 11500000 | 1856000 | 19.25% |
Profit is calculated from Mar 17, 2021 share price i.e. Rs.9644 per share of Bharat Rasayan Limited.
According to the above table, if a shareowner applies for 1000 shares of Bharat Rasayan limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs. 11,500 per share & receive Rs.371200 as profit amount & 3.85% 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.11,500 & receive a profit of Rs.1113600 @ 11.55% profit percentage.
Bharat Rasayan Buyback Overview
Company belongs to the Agrochemicals Industry and is engaged in manufacturing of Technical Grade Pesticides and Intermediates confirming to International Standards.
Bharat Group is the brainchild of a visionary Mr. S.N. Gupta, one of the pioneers of Indian Agrochemical Industry. Active in this arena since 1977, he was joined by two like-minded partners Mr. M.P. Gupta and Mr. R.P. Gupta. Today, their joint effort has converted Bharat Group into one of the Top 5 Indian Agrochemical Company with group turnover of more than INR 2000 crores.
The company got its inception in 1977 and finally the group established Bharat Rasayan Limited in 1989. Bharat Rasayan got listed on the NSE in 1993 and acquired Siris Crop Science Ltd in 2003.
Also, the company has further expanded its capacity of MPBD and in 2020 made its strategic alliance with Bharat Insecticides Limited in India.
Check other Buybacks with previous, upcoming and active status
Bharat Rasayan Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Crores]
| Particulars | Dec 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 82,584.33 | 123,187.01 | 99,468.72 | 81,301.62 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 64,953.62 | 98,911.14 | 80,683.75 | 65,033.79 |
| Interest | 197.64 | 1,562.16 | 1,582.49 | 1,108.88 |
| Depreciation | 1921.29 | 2,194.06 | 1,689.12 | 1,641.88 |
| Profit before tax | 15,511.78 | 20,519.65 | 15,531.36 | 13,517.07 |
| Profit /(Loss) after tax | 11,725.16 | 15,764.19 | 11,152.43 | 9,831.40 |
| Equity Share Capital | 424.87 | 424.87 | *424.87 | 424.87 |
| Reserve and Surplus | 67,595.76 | 55,987.00 | 40,455.84 | 29,399.72 |
| Networth | 68,020.64 | 56,411.88 | 40,880.72 | 29,824.60 |
| Total Debt | 1,998.31 | 9,385.70 | 24,699.44 | 12,834.37 |
Bharat Rasayan Limited Buyback Dates
| Date of Board Meeting approving the Buyback | January 12, 2021 |
| Date of publication of Public Announcement for Buyback | February 19, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | March 5, 2021 |
| Buyback Opening date | March 26, 2021 |
| Buyback Closing date | April 12, 2021 |
| Last Date of verification of Tender Forms by the Registrar | April 14, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | April 20, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | April 22, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | April 22, 2021 |
| *Last date of Extinguishment of Equity Shares | April 29, 2021 |
Details of Public Announcement
This is to say, in accordance with Regulation 7(i) of the Buyback Regulations, the Public Announcement was published on January 19, 2021 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All editions |
Find Latest Buybacks Offer, Performance and Financial details
Necessity of Bharat Rasayan Buyback
The Buyback is being undertaken by the Company to return surplus funds to the Equity Shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective and cost-efficient manner.
Further the Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, involves a reservation of up to 15% of the Buyback Size for Small Shareholders.
Also, the company believes that this reservation of up to 15% for Small Shareholders would benefit a large number of the Company’s public shareholders, who would be classified as Small Shareholders for the purposes of the Buyback.
Impact of Bharat Rasayan Buyback on the Company
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.
Assuming that the response to the Buyback is to the extent of 100% (full Acceptance) from all the Eligible Shareholders up to their Buyback Entitlement, the funds deployed by the Company towards the Buyback excluding costs, applicable taxes and expenses of the Buyback, would be Rs 1,07,49,28,000.
In terms of the Buyback Regulations, under the Tender Offer route, the Promoters and Promoter Group have the option to participate in the Buyback. In this regard, the Promoter and Promoter Group have expressed their intention vide their letters dated January 12, 2021, to participate in the Buyback and may tender up to an aggregate maximum number of 74,529.
Also, Equity Shares or such lower number of shares in accordance with the provisions of the Buyback Regulations/terms of the Buyback.
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) | 56,411.87 | 45,662.59 |
| Return on Net worth (%) | 27.94 | 34.52 |
| Earnings Per Share (Rs) | 371.03 | 379.38 |
| Book Value per Share (Rs) | 1,327.73 | 1,098.91 |
| Price / Earnings Ratio (P/E)** | 25.44 | 24.88 |
| Total Debt / Equity Ratio | 0.17 | 0.21 |
Basis of Calculating Bharat Rasayan Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs 11,500/- per Equity Share. This Buyback Price has been arrived at after considering various factors such as (i) the share price benchmarks on the NSE, the stock exchange where the maximum volume of trading in the Equity Shares is recorded, (ii) the net worth of the Company, and (iii.) the impact on the earnings per Equity Share.
The Buyback Offer Price of Rs. 11,500/- per Equity Share represents
(i) The Buyback Price represents a Premium of 23.07% over the volume weighted average market price of the Equity Shares on NSE for the 60 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback and 18.18% over the volume weighted average market price of the Equity Shares on the NSE for the 10 trading days preceding the date of intimation to the Stock Exchanges of the Board Meeting to consider the proposal of the Buyback.
(ii) In addition, a premium of 657.34% of the book value per Equity Share of the Company, which as of September 30, 2020 was Rs 1,518.48 per Equity share.
(iii) Further ratio of the aggregate of secured and unsecured debts owed by the Company shall not be more than twice the paid-up Equity Share capital and free reserves after the Buyback based on both audited standalone financial statements and audited consolidated financial statements of the Company as on March 31, 2020;
Also, the annualized return on net worth of the Company was 25.43% for the six months ended September 30, 2020 on a standalone basis, which will increase to 30.65% post Buyback, on a standalone basis, assuming full acceptance of the Buyback.
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
Assuming that the response to the Buyback is to the extent of 100% (full Acceptance), the funds that would be utilized by the Company for the purpose of the Buyback would be Rs 1,07,49,28,000
However, funds for the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Borrowed funds will not be used for the Buyback.
This Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.
Moreover, company shall transfer from its free reserves, a sum equal to the nominal value of the Equity Shares bought back to the capital redemption reserve account, and details of such transfer shall be disclosed in its subsequent audited financial statements. Also, the funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
Bharat Rasayan Limited – Manager to the Buyback
| BuyBack Manager |
| Corporate Professionals Capital Private Limited D-28, South Extension Part-1, New Delhi-110049, India Tel: 011-40622230/ 40622200; Contact person: Ms. Anjali Aggarwal, Email:mb@indiacp.com Website:www.corporateprofessionals.com Investor grievance e-mail: mb@indiacp.com SEBI Registration No.: INM000011435 Validity Period: Permanent Corporate Identity Number: U74899DL2000PTC104508 |
Bharat Rasayan Ltd – Registrar to the Buyback
| Buyback Registrar |
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli West, Mumbai- 400 083, Maharashtra, India Tel: +022-49186200; Fax: +022-49186195 Email:bharatrasayan.buyback@linkintime.co.in Website:www.linkintime.co.in Contact Person: Mr. Sumeet Deshpande SEBI Registration No.: INR000004058 Validity Period: Permanent Corporate Identity Number: U67190MH1999PTC118368 |
Bharat Rasayan Buyback – Contact Details
| Company Contact Details |
|
BHARAT RASAYAN LIMITED
CIN: L24119DL1989PLC036264 Registered Office: 1501, Vikram Tower, Rajendra Place, New Delhi – 110008, India Ph: +011-43661111, Fax: +011-43661100, 41538600 Website: www.bharatgroup.co.in; E-mail: investors.brl@bharatgroup.co.in Contact Person: Ms. Nikita Chadha, Company Secretary & Compliance Officer |
Bharat Rasayan Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – Bharat Rasayan Buyback / Letter of Offer [Download]
FAQs of Bharat Rasayan Buyback
What is the Bharat Rasayan Buyback Period?
Bharat Rasayan 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. March 26, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. April 12, 2021.
What type of buyback is Bharat Rasayan 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 Bharat Rasayan Buyback Offer?
Bharat Rasayan Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 93,472 Fully paid up Equity shares, adhering to the buyback price.
When Bharat Rasayan Buyback offer will start?
As per the released schedule, the Bharat Rasayan Buyback offer will start on March 26, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Bharat Rasayan Buyback at all times, we ensure you have access to the right data.
When is the closing date of Bharat Rasayan Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Bharat Rasayan Buyback. The buyback would close on April 12, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Bharat Rasayan Buyback?
The amount at which the shares are taken back by the company is referred to as Bharat Rasayan Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.11,500, the price paid to each eligible shareholder.
What is the record date for Bharat Rasayan Buyback offer?
Record date of Bharat Rasayan Buyback is March 5, 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 Bharat Rasayan Buyback?
Bharat Rasayan Buyback Size is Rs.1,07,49,28,000 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 Bharat Rasayan Buyback?
Objective of the Bharat Rasayan 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 Bharat Rasayan Buyback offer?
The designated registrar of Bharat Rasayan 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 Bharat Rasayan Buyback offer?
Manager to the Bharat Rasayan Buyback is Corporate Professionals Capital 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 Bharat Rasayan 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 Bharat Rasayan 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 Bharat Rasayan Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Bharat Rasayan Buyback Dates.
What can be the Impact of Bharat Rasayan 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 Bharat Rasayan 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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