Eris Lifesciences Limited Buyback Review, Offer Details, Price, Record Date, Size & more
Last Updated Date: Nov 16, 2022In this article, we will discuss the Eris Lifesciences Limited Buyback offer, buyback price, Eris Lifesciences buyback size, record date, company financial, buyback necessity and its impact on the company.
To track the real time share price of this Buyback, click on this link – Eris Lifesciences Share Price
Eris Lifesciences Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | January 1, 2020 |
| Closing Date | January 14, 2020 |
| Buyback Offer Amount | Rs.1,000 Million |
| Buyback No. of Shares | 1,739,130 |
| Face Value | Rs.1/- |
| Date of Buyback Approval | July 3, 2019 |
| Date of Public Announcement | July 5, 2019 |
| Buy Back Price | Rs.575/- |
| Buy Back Premium | 13.01% |
Eris Lifesciences Buyback Opening and Closing Date
The starting date is January 1, 2020 and closing dates of this buyback is January 14, 2020.
Eris Lifesciences Buyback Cash Offer
The Cash Offer to Buy-back up to 1,739,130 fully paid-up equity shares of the Company of face value of Rs.1 each.
Eris Lifesciences Buyback Record Date
The decided record date is Monday, July 15, 2019.
Eris Lifesciences Buyback Price
At a price of Rs.575/- (Rupees Five Seventy Five Only) per Equity Share.
Eris Lifesciences Buyback Size
The Buyback is for an aggregate amount not exceeding Rs.1,000 Million (Rupees One Thousand Million only)
Eris Lifesciences 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 | 575 | 115000 | 23000 | 5.00% |
| 40% | 400 | 575 | 230000 | 46000 | 10.00% |
| 60% | 600 | 575 | 345000 | 69000 | 15.00% |
| 80% | 800 | 575 | 460000 | 92000 | 20.00% |
| 100% | 1000 | 575 | 575000 | 115000 | 25.00% |
Profit is calculated from Dec 26, 2019 share price i.e. Rs.460 per share of Eris Lifesciences Limited.
According to the above table, if a shareowner applies for 1000 shares of Eris Lifesciences Limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.575 per share & receive Rs.23000 as profit amount & 5.00 % 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.575 & receive a profit of Rs.69000 @ 15.00% profit percentage.
Eris Lifesciences Limited Buyback Overview
The Company was incorporated as “Eris Lifescience Private Limited” on January 25, 2007, as a private limited company under the Companies Act 1956, at Ahmedabad, with a certificate of incorporation granted by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli.
A fresh certificate of incorporation consequent to the change in their Company’s name to “Eris Lifesciences Private Limited” was issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli on February 9, 2007.
Further, pursuant to the conversion of their Company to a public limited company, their Company’s name changed to “Eris Lifesciences Limited” and the Registrar of Companies, Ahmedabad (the “RoC”) issued a fresh certificate of incorporation on February 2, 2017.
The Company is engaged in the business of manufacturing, marketing and distributing branded formulations in the Indian market. It has presence in high growth chronic and acute therapeutic areas that require high intervention of specialists and super specialists.
The total authorised share capital of the Company is Rs.300 Million consisting of 300,000,000 Equity Shares of Re.1/- each. As on date the subscribed, issued and paid up share capital of the Company consisted of 137,519,783 Equity Shares of Re.1/- each aggregating Rs.137,519,783/-.
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Company Finances – Eris Lifesciences Limited
The salient features of the financial information of the Company for last three financial years as extracted from the financial statements is provided below:
(Rs in Millions)
| Particulars | March 31, 2019 |
For the year ended March 31, 2018 |
March 31, 2017 |
| Audited | |||
| Total Income | 10,138.55 | 8,820.12 | 7,746.09 |
| Total Expenses | 6,372.48 | 5,335.91 | 4,804.28 |
| Depreciation and Amortization expense |
363.54 | 256.42 | 227.61 |
| Profit/(Loss) before Tax | 3,173.58 | 3,122.29 | 2,703.87 |
| Provision for Tax (including Deferred Tax) |
262.11 | 172.51 | 237.80 |
| Profit/(Loss) after Tax | 2,911.47 | 2,949.78 | 2,466.07 |
| Equity share capital | 137.52 | 137.50 | 137.50 |
| Other Equity | 11,367.66 | 8,475.57 | 5,533.86 |
| Net worth | 11,688.29 | 8,859.72 | 5,909.29 |
| Debt (excluding working capital) | 1,764.61 | 3,771.28 | 77.60 |
Eris Lifesciences Buyback Dates
| Date of the Board meeting held to approve the proposal for Buy-back of Equity Shares | Wednesday, July 3, 2019 |
| Date of publication of Public Announcement for the Buy-back | Friday, July 5, 2019 |
| Record Date for determining the Buy-back Entitlement and the Eligible Shareholders | Monday, July 15, 2019 |
| Buy-back opens on / Buy-back Opening Date | Wednesday, January 1, 2020 |
| Buy-back closes on / Buy-back Closing Date | Tuesday, January 14, 2020 |
| Last date of verification by Registrar to Buy-back | Wednesday, January 22, 2020 |
| Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-back | Wednesday, January 22, 2020 |
| *Last date of settlement of bids on the Stock Exchange | Thursday, January 23, 2020 |
| Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / Broker | Thursday, January 23, 2020 |
| Last date of extinguishment of Equity Shares bought back | January 30, 2020, Thursday |
Necessity of Eris Lifesciences Buyback
The Company’s management strives to increase Shareholders’ value and the Buy-back would result in, amongst other things:
- The Buyback will improve the Earnings Per Share (EPS), Return on Capital Employed (ROCE) and Return on Equity (ROE);
- Buyback will help in achieving an optimal capital structure;
- The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of number of shares as per the entitlement of the shareholders or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder” as per Regulation 2 (i)(n) of the SEBI Buyback Regulations;
- Buyback gives an option to the equity shareholders to either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post Buyback, without additional investment.
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Impact of Eris Lifesciences Buyback on the Company
They believe that the Buyback 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 could have otherwise deployed towards generating investment income.
In the event that there is 100% acceptance of the Equity Shares tendered in the Buyback from Shareholders on a proportionate basis, the funds deployed by the Company towards the Buyback would be Rs. 1,000 Million (Rupees One Thousand Million only). This shall impact the investment income earned by the Company, on account of reduced amount of funds available for investments.
The Buyback is not expected to impact growth opportunities for the Company.
The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.
Salient financial parameters consequent to the Buyback based on the audited standalone and consolidated financial
statements for the half year ended on March 31, 2019, are as under:
| Parameters | Consolidated Financial Statements |
Standalone Financial Statements |
||
| Pre Buyback | Post Buyback | Pre Buyback | Post Buyback | |
| Net Worth (Rs in Million) | 11,688.29 | 10,688.29 | 11,560.07 | 10,560.07 |
| Return on Net Worth % | 24.91% | 27.24% | 24.69% | 27.02% |
| Earnings Per Equity Share (EPS) (Basic) (in Rs) |
21.15 | 21.42 | 20.75 | 21.02 |
| Book Value per share (in Rs) | 84.99 | 78.72 | 84.06 | 77.77 |
| Price Earnings (PE) Multiple | 30.49 | 30.11 | 31.08 | 30.68 |
| Debt/ Equity ratio | 0.15 | 0.17 | 0.15 | 0.17 |
Basis of Calculating Eris Lifesciences Buyback Price
The Buyback Price has been arrived at after considering various factors including, but not limited to the trends in the market prices of the Equity Shares on the Stock Exchanges where the Equity Shares are listed, the net worth of the Company, price earnings ratio, impact on other financial parameters and the possible impact of Buyback on the earnings per Equity Share.
More on Eris Lifesciences Buyback Price Calculation
The Buy-back Price represents
- Premium of 12.24% and 13.01% over the closing market price of the Equity Shares on the BSE and on the NSE respectively, as on June 24, 2019, being the date on which the Company intimated the Stock Exchanges of the date of the meeting of the Board wherein proposal of the Buyback was to be considered.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be deployed by the Company for the purposes of the Buyback, would be Rs. 1,000 Million (Rupees One Thousand Million only) excluding any expense incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India, brokerage, applicable taxes such as securities transaction taxes, goods and services tax, stamp duty, advisors’ fees, public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses.
The funds for the Buyback will be sourced from internal accruals. The Company has confirmed that funds for Buyback will be available from cash balances and/or liquidation of financial instruments and/or other sources available with the Company as permitted by the Buyback Regulations.
The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and details of such transfer shall be disclosed in its subsequent audited financial statement.
The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
Eris Lifesciences – Manager to the Buyback
| Axis Capital Limited 1st Floor, Axis House, C-2 Wadia International Centre, P.B. Marg, Worli, Mumbai – 400025 Tel: +91 22 4325 2183 ; Fax: + 91 22 4325 3000 Email: ell.buyback2019@axiscap.in Contact Person : Mr. Sagar Jatakiya SEBI Registration: INM000012029 Validity Period: : Perpetual CIN: U51900MH2005PLC157853 |
Eris Lifesciences – Registrar to the Buyback
| Link Intime India Private Limited C- 101, 1st Floor, 247 Park, L. B. S. Marg, Vikhroli (West), Mumbai – 400 083 Tel: +91 22 4918 6200; Fax: +91 22 4918 6195 Email: eris.buyback@linkintime.co.in Contact Person: Mr. Sumeet Deshpande SEBI Registration: INR000004058 Validity Period : Permanent Registration CIN: U67190MH1999PTC118368 |
Eris Lifesciences Limited Contact Details
| Company Contact Details |
| Eris Lifesciences Limited CIN: L24232GJ2007PLC049867 Registered and Corporate Office: 8th Floor, Commerce House- IV, Prahladnagar, 100 Feet Road, Ahmedabad-380015, Gujarat, India. Tel.: +91 79 3045 1111; Fax: +91 79 3017 9404 E-mail: complianceofficer@erislifesciences.com; Website: www.eris.co.in Contact Person: Mr. Milind Talegaonkar, Company Secretary and Compliance Officer |
Eris Lifesciences Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
FAQs of Eris Lifesciences Buyback
What is the Eris Lifesciences Buyback Period?
Eris Lifesciences Buyback Period is briefly the time interval starting from date of declaration of results of the postal ballot through remote e-voting i.e. July 5, 2019. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. January 23, 2020.
What type of buyback is Eris Lifesciences 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 Eris Lifesciences Buyback Offer?
Eris Lifesciences Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 1,739,130 Fully paid up Equity shares, adhering to the buyback price.
When Eris Lifesciences Buyback offer will start?
As per the released schedule, the Eris Lifesciences Buyback offer will start on January 1, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Eris Lifesciences Buyback at all times, we ensure you have access to the right data.
When is the closing date of Eris Lifesciences Buyback?
For the ease in access to the dates and related aspects, we have segregated the closing date of Eris Lifesciences Buyback. The buyback would stay open from January 1, 2020, and would close on January 14, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Eris Lifesciences Buyback?
The amount at which the shares are taken back by the company is referred to as Eris Lifesciences Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.575, the price paid to each eligible shareholder.
What is the record date for Eris Lifesciences Buyback offer?
Record date of Eris Lifesciences Buyback is July 15, 2019. 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 Eris Lifesciences Buyback?
Eris Lifesciences Buyback Size is Rs. 1,000 Million 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 Eris Lifesciences Buyback?
The Buyback will improve the Earnings Per Share (EPS), Return on Capital Employed (ROCE) and Return on Equity (ROE); Buyback will help in achieving an optimal capital structure;
Who is the Registrar to Eris Lifesciences Buyback offer?
Designated registrar of Eris Lifesciences 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 Eris Lifesciences Buyback offer?
Manager to the Eris Lifesciences Buyback is Axis Capital 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 Eris Lifesciences 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 Eris Lifesciences 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 Eris Lifesciences Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Eris Lifesciences Buyback Dates.
What can be the Impact of Eris Lifesciences 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.
Where to find complete details on Eris Lifesciences Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download 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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