Emami Limited Buyback Review, Offer Details, Price, Dates, Size & more

In this article, they will discuss about Emami Limited Buyback offer, buyback price, buyback size, Emami Buyback record date, company financial, buyback necessity and its impact on company.

Emami Limited Buyback Details

Buyback TypeOpen Market
Opening DateMarch 27, 2020
Closing DateSeptember 26, 2020
Buyback Offer AmountRs.19,199.43 lacs
Buyback No. of Shares63,99,810
Face ValueRs.1
Date of Buyback ApprovalMarch 19, 2020
Date of Public AnnouncementMarch 21, 2020
Buy Back PriceRs.300
Buy Back Premium27.68%
Date of Board MeetingMarch 19, 2020

Emami Buyback Opening and Closing Date

The starting and closing date of this buyback is from March 27, 2020 to September 26, 2020.

Emami Buyback Cash Offer

Cash Offer to Buy-back up to 1,25,00,000 fully paid-up equity shares of the Company of face value of Rs.1 each, representing 10.00% and 9.94% of the aggregate of the total paid-up capital and free reserves of the Company.

Emami Buyback Record Date

The decided record date is March 24, 2020.

Emami Buyback Price

At a price of Rs.300 per Equity Share.

Emami Buyback Size

At a buyback price of Rs.300 payable in cash for an aggregate maximum amount of Rs.19,199.43 lacs.

Emami 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.


Emami Limited 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%200300600002720016.59%
40%4003001200005440033.17%
60%6003001800008160049.76%
80%80030024000010880066.34%
100%100030030000013600082.93%

Profit is calculated from March 16, 2020 share price i.e. Rs.164 per share of Emami Limited.

According to the above table, if a shareowner applies for 1000 shares of Emami limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.300 per share & receive Rs.27200 as profit amount & 16.59% 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.300 & receive a profit of Rs.81600 @ 49.76% profit percentage.


Emami Limited Buyback Overview

Emami Limited BuybackEmami Limited was incorporated on March 11, 1983 as A.M.P Udyog Viniyog Limited under the Companies Act, 1956. In 1994, Himani Ltd was merged with AMP Udyog Viniyog Ltd., vide Hon’ble Calcutta High Court order dated February 8, 1994 and its name was changed as per fresh certificate of incorporation dated May 5, 1994 and its name was changed as Emami Limited as per fresh certificate of incorporation dated September 1, 1998. The Equity Shares of the Company are listed since 1983 on CSE, 1995 on BSE and 2006 on NSE.

Emami Limited is one of the leading personal and health care company in India, with portfolio of household brand names such as Boro Plus, Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, Fast Relief and Kesh King. Emami has a portfolio of over 300 + products based on Ayurvedic formulations.

The Company’s operations comprise more than 60+ countries including SAARC, Middle East, South East Asia, Africa, Eastern Europe and the CIS countries.


Company Finances – Emami Limited

The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the 6 months ended September 30, 2019 are provided below:

[In Rs. Lakhs]

ParticularsFor the period ended Sept 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income1,24,6262,52,5892,39,2552,38,594
Total Expenses (excluding Interest, depreciation)86,5571,78,2261,66,4831,60,174
Interest1,2801,9293,3175,762
Depreciation and Amortization15,91331,80430,53130,468
Profit before tax20,87639,65038,92442,190
Provision for tax
(including Deferred Tax)
3,0539,1257,9727,554
Profit /(Loss) after tax17,82330,52530,95234,636
Equity Share Capital4,5394,5392,2702,270
Reserves1,92,1912,01,9011,94,8541,94,854
Networth1,96,7302,06,4401,97,1241,71,256
Total Debt22,9215,43427,93743,470

Emami Limited Buyback Dates

Date of Board Meeting approving the BuybackMarch 19, 2020
Date of publication of Public Announcement for BuybackMarch 21, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders[●]
Buyback Opening dateMarch 27, 2020
Buyback Closing dateSeptember 26, 2020
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 relation to the Buyback (as defined hereinafter) of Equity Shares (as defined hereinafter) of Emami Limited (the “Company”) from the open market through stock exchange mechanism, pursuant to the provisions of Regulation 16(iv)(b) and other applicable provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (including any statutory modification(s) or amendment(s) from time to time) (the “Buyback Regulations”) and contains the disclosures as specified in Schedule IV to the Buyback Regulations.


Necessity of Emami Limited Buyback

The Company’s management strives to increase the Equity Shareholders’ value and the Buyback would result in the following benefits, amongst other things:

  1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;
  2. This Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value; and
  3. The Buyback gives an option to the shareholders 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 additional investment.

Impact of Emami Limited Buyback on the Company

The Buyback is expected to enhance overall long-term shareholders’ value for continuing shareholders, without compromising on the future growth opportunities of the Company, as well as provide an exit opportunity to the public shareholders. This Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.

The Buyback is not likely to cause any material adverse impact on the earnings of the Company, except a reduction in the treasury income which the Company could have otherwise earned from investments in fixed deposits and mutual funds. The Company will also bear the cost of the Buyback transaction.

This Buyback is proposed, considering the accumulated surplus funds available with the Company, after considering the funds required for future growth of the Company as envisaged by the Board.

The Buyback will lead to reduction in existing Equity Shares and consequently, is expected to improve the ‘earnings per share’ and enhance return on equity, assuming that the Company would earn similar profits as in the past.

Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for the half year ended March 31, 2019 are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2019)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)
Return on Net worth (%)
Earnings Per Share Basic (Rs)
Earnings Per Share Diluted (Rs)
Book Value per Share (Rs)
Total Debt / Equity Ratio

Basis of Calculating Emami Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.300/- (Indian Rupees Three hundred only) per Equity Share.

The Maximum Buy Back Price is INR 300/- per Equity Share. The Maximum Buy-Back Price has been arrived at after considering various factors, including, but not limited to the average of the daily volume weighted average market prices of the Equity Shares of the Company on Stock Exchanges.

The Buyback Price represents

  • A premium of 27.68% over the average of the daily volume weighted average market price on NSE (the stock exchange where the maximum volume of trading in the Equity Shares is recorded) for 2 weeks preceding the date of Prior Intimation which was Rs. 234.95/-  only; and
  • Premium of 4.19% over the average of the daily volume weighted average market price on NSE (the stock exchange where the maximum volume of trading in the Equity Shares is recorded) for 2 months preceding the date of Prior Intimation which was INR 287.94/- only; and
  • A premium of 2.02% over the average of the daily volume weighted average market price on NSE (the stock exchange where the maximum volume of trading in the Equity Shares is recorded) for 3 months preceding the date of Prior Intimation which was INR 294.05/- only.

Source of Funds for the Buyback

The Company shall utilize at least 50% of the Maximum Buyback Size i.e., INR 9,599.72 lacs towards the Buyback and the Company will accordingly purchase an indicative minimum of 31,99,905 Equity Shares, based on the Maximum Buyback Price.

If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the indicative Maximum Buyback Shares (assuming full deployment of the Maximum Buyback Size) but will always be subject to the Maximum Buyback Size.

However, the Maximum Buyback Shares will not exceed 25% of the total number of Equity Shares in the total paid-up equity capital of the Company.

The amount required by the Company for the Buyback (including the Transaction Costs) will be funded out of the internal accruals of the Company including free reserves.


Emami Limited – Manager to the Buyback

IIFL SECURITIES LIMITED
10th Floor, IIFL Centre, Kamala Mills,
Senapati Bapat Marg, Lower Parel (West)
Tel. No.: +91 22 4646 4600
Fax No.: +91 22 2493 1073
Email: emami.buyback@iiflcap.com
Website: www.iiflcap.com
Investor grievance e-mail: ig.ib@iiflcap.com
SEBI Registration No.: INM000010940
Validity Period: Permanent
(Unless suspended or cancelled by SEBI)
Contact persons: Pinak Bhattacharyya/Nishita Mody
CIN: L99999MH1996PLC132983

Emami Limited – Registrar to the Buyback

MAHESHWARI DATAMATICS PVT LTD
23, R.N. Mukherjee Road, 5th Floor, Kolkata – 700 001, West Bengal
Tel No.: +91 33 – 22482248/22435029/+91 7044243107;
Fax No.: +91 33 – 22484787
Contact Person: Mr. S. Rajagopal/Mr. S.K. Chaubey
Email: mdpldc@yahoo.com
Website: www.mdpl.in
SEBI Registration No.: INR 000000353
Validity Period: Permanent
(Unless suspended or cancelled by SEBI)
CIN: U20221WB1982PTC034886

Emami Limited Contact Details

Company Contact Details
Emami Limited
CIN: L63993WB1983PLC036030
Registered Office: 687, Emami Tower, Anandapur E M Bypass, Kolkata – 700 107, West Bengal
Tel. No.: +91-33-66136264; Fax No.: +91-33-66136600; Website: www.emamiltd.in; Email: investors@emamigroup.com;
Company Secretary and Compliance Officer: Mr. A.K. Joshi, Company Secretary & VP-Legal

 


Emami Limited Buyback News

News 1 – Buyback PDF / Draft Letter of Offer [Download]

News 2 – Emami Ltd – Public Announcement


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