Emami Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In 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.
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Emami Limited Buyback Details
| Buyback Type | Open Market |
| Opening Date | March 27, 2020 |
| Closing Date | September 26, 2020 |
| Buyback Offer Amount | Rs.19,199.43 lacs |
| Buyback No. of Shares | 63,99,810 |
| Face Value | Rs.1 |
| Date of Buyback Approval | March 19, 2020 |
| Date of Public Announcement | March 21, 2020 |
| Buy Back Price | Rs.300 |
| Buy Back Premium | 27.68% |
| Date of Board Meeting | March 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 Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 300 | 60000 | 27200 | 16.59% |
| 40% | 400 | 300 | 120000 | 54400 | 33.17% |
| 60% | 600 | 300 | 180000 | 81600 | 49.76% |
| 80% | 800 | 300 | 240000 | 108800 | 66.34% |
| 100% | 1000 | 300 | 300000 | 136000 | 82.93% |
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 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.
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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]
| Particulars | For the period ended Sept 2019 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2019 | 2018 | 2017 | ||
| Total Income | 1,24,626 | 2,52,589 | 2,39,255 | 2,38,594 |
| Total Expenses (excluding Interest, depreciation) | 86,557 | 1,78,226 | 1,66,483 | 1,60,174 |
| Interest | 1,280 | 1,929 | 3,317 | 5,762 |
| Depreciation and Amortization | 15,913 | 31,804 | 30,531 | 30,468 |
| Profit before tax | 20,876 | 39,650 | 38,924 | 42,190 |
| Provision for tax (including Deferred Tax) |
3,053 | 9,125 | 7,972 | 7,554 |
| Profit /(Loss) after tax | 17,823 | 30,525 | 30,952 | 34,636 |
| Equity Share Capital | 4,539 | 4,539 | 2,270 | 2,270 |
| Reserves | 1,92,191 | 2,01,901 | 1,94,854 | 1,94,854 |
| Networth | 1,96,730 | 2,06,440 | 1,97,124 | 1,71,256 |
| Total Debt | 22,921 | 5,434 | 27,937 | 43,470 |
Emami Limited Buyback Dates
| Date of Board Meeting approving the Buyback | March 19, 2020 |
| Date of publication of Public Announcement for Buyback | March 21, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | [●] |
| Buyback Opening date | March 27, 2020 |
| Buyback Closing date | September 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.
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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:
- The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;
- 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
- 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-back | Post 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.
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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
FAQs of Emami Buyback
What is the Emami Buyback Period?
Emami 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 27, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. September 26, 2020.
What type of buyback is Emami Buyback?
This company has chosen the route of Open Market to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Open Market Through Stock Exchanges.
What is the Emami Buyback Offer?
Emami Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 63,99,810 Fully paid up Equity shares, adhering to the buyback price.
When Emami Buyback offer will start?
As per the released schedule, the Emami Buyback offer will start on March 27, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Emami Buyback at all times, we ensure you have access to the right data.
When is the closing date of Emami Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Emami Buyback. The buyback would close on September 26, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Emami Buyback?
The amount at which the shares are taken back by the company is referred to as Emami Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.300, the price paid to each eligible shareholder.
What is the record date for Emami Buyback offer?
Record date of Emami Buyback is March 24, 2020. 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 Emami Buyback?
Emami Buyback Size is Rs.19,199.43 lacs 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 Emami Buyback?
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.
Who is the Registrar to Emami Buyback offer?
The designated registrar of Emami Buyback is MAHESHWARI DATAMATICS PVT LTD. 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 Emami Buyback offer?
Manager to the Emami Buyback is IIFL SECURITIES 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 Emami 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 Emami 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 Emami Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Emami Buyback Dates.
What can be the Impact of Emami 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 Emami 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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