Eris Lifesciences Limited Buyback Review, Offer Details, Price, Record Date, Size & more

In 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.

Eris Lifesciences Buyback Details

Buyback TypeTender Offer
Opening DateJanuary 1, 2020
Closing DateJanuary 14, 2020
Buyback Offer AmountRs.1,000 Million
Buyback No. of Shares1,739,130
Face ValueRs.1/-
Date of Buyback ApprovalJuly 3, 2019
Date of Public AnnouncementJuly 5, 2019
Buy Back Price Rs.575/-
Buy Back Premium13.01%

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 RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200575115000230005.00%
40%4005752300004600010.00%
60%6005753450006900015.00%
80%8005754600009200020.00%
100%100057557500011500025.00%

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/-.


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)

ParticularsMarch 31,
2019
For the year
ended March
31, 2018
March 31,
2017
Audited
Total Income10,138.558,820.127,746.09
Total Expenses6,372.485,335.914,804.28
Depreciation and Amortization
expense
363.54256.42227.61
Profit/(Loss) before Tax3,173.583,122.292,703.87
Provision for Tax
(including Deferred Tax)
262.11172.51237.80
Profit/(Loss) after Tax2,911.472,949.782,466.07
Equity share capital137.52137.50137.50
Other Equity11,367.668,475.575,533.86
Net worth11,688.298,859.725,909.29
Debt (excluding working capital)1,764.613,771.2877.60

Eris Lifesciences Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesWednesday, July 3, 2019
Date of publication of Public Announcement for the Buy-backFriday, July 5, 2019
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersMonday, July 15, 2019
Buy-back opens on / Buy-back Opening DateWednesday, January 1, 2020
Buy-back closes on / Buy-back Closing DateTuesday, January 14, 2020
Last date of verification by Registrar to Buy-backWednesday, 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-backWednesday, January 22, 2020
*Last date of settlement of bids on the Stock ExchangeThursday, January 23, 2020
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / BrokerThursday, January 23, 2020
Last date of extinguishment of Equity Shares bought backJanuary 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.

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 BuybackPost BuybackPre BuybackPost Buyback
Net Worth (Rs in Million)11,688.2910,688.2911,560.0710,560.07
Return on Net Worth %24.91%27.24%24.69%27.02%
Earnings Per Equity Share (EPS)
(Basic) (in Rs)
21.1521.4220.7521.02
Book Value per share (in Rs)84.9978.7284.0677.77
Price Earnings (PE) Multiple30.4930.1131.0830.68
Debt/ Equity ratio0.150.170.150.17

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.

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]


Market Guide

What is IPO?
IPO Investment
Upcoming IPOs
 IPO Valuation

Featured Topics

Best Discount Broker in India
Top 10 Sub Broker Partner in India
Best Stock Broker in India
Sub Broker Franchise
Best Demat Account
Brokerage Calculator
Best Full Service Broker in India
Broking Franchisee
 Best Intraday Trading Brokers in India

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Get 90% Discount on Brokerage Now! Open Demat Account
×

Share your details & Become Sub Broker Now!

  1. Become Sub Broker

Offer valid for limited time.

×

Share your details & Open Demat A/C Now!

  1. Open Demat Account

Offer valid for limited time.

×

Share your details & Get IPO Allotment Now!

  1. Invest in IPO

Offer valid for limited time.

×

Share your details & Invest in PMS Now!

  1. Invest in PMS / PCG

Offer valid for limited time.