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Freshtrop Fruits Limited Buyback Review, Offer Details, Price, Dates, Size & more

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

Freshtrop Fruits Limited Buyback Details

Buyback TypeTender Offer
Opening Date[●]
Closing Date[●]
Buyback Offer AmountRs. 11,00,00,000/-
Buyback No. of Shares10,00,000
Face ValueRs. 10
Date of Buyback ApprovalThursday, September 26, 2019
Date of Public AnnouncementMonday, September 30, 2019
Buy Back PriceRs. 110/-
Buy Back Premium8.23%
Date of Board MeetingFriday, August 23, 2019

Freshtrop Fruits Limited Buyback Opening and Closing Date

The starting and closing date of this buyback is NA.

Freshtrop Fruits Limited Buyback Cash Offer

The Cash Offer to Buy-back up to 10,00,000 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 823% of the total number of equity shares.

Freshtrop Fruits Limited Buyback Record Date

The decided record date is October 11, 2019.

Freshtrop Fruits Limited Buyback Price

At a price of Rs.110(Rupees One hundred ten only) per Equity Share.

Freshtrop Fruits Limited Buyback Size

At a buyback price of Rs.110/- payable in cash for an aggregate consideration not exceeding Rs.11,00,00,000 (Rupees Eleven Crores Only).

Freshtrop Fruits 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.


Freshtrop Fruits 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%2001102200030003.16%
40%4001104400060006.32%
60%6001106600090009.47%
80%800110880001200012.63%
100%10001101100001500015.79%

Profit is calculated from 11th Oct 2019 share price i.e. Rs.95 per share of Freshtrop Fruits Limited.

According to the above table, if a shareowner applies for 1000 shares of Freshtrop Fruits Limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.110 per share & receive Rs.3000 as profit amount & 3.16 % 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.110 & receive a profit of Rs.66000 @ 9.47 % profit percentage.


Freshtrop Fruits Limited Buyback Overview

Freshtrop Fruits Limited BuybackThe Company was incorporated in the name of Freshtrop Fruits Private Limited on September 30, 1992 in the Registrar of Companies, Gujarat, Dadra & Nagar Haveli. Thereafter a fresh certificate of incorporation consequent upon change of name on conversion of the company to public limited company in the name of the “Freshtrop Fruits Limited” was granted by ROC on September 22, 1994.

Company is presently engaged in two business segments i.e. Fresh Fruits and Processed Fruits and Vegetables. Fresh Fruits: The Company’s principal business which consists of fresh grapes, pomegranates and mangoes. Processed Fruits and Vegetables: It consists of Mango pulp, Guava pulp, Pomegranate concentrate 21 and Puree and cold processed juice.

For the financial years ended March 31, 2017, 2018 and 2019, the Company had total income of Rs.14,522.81 lacs, Rs.17,795.87 lacs and Rs.17,605.02 lacs, respectively, and profit after tax of Rs.892.59 lacs, Rs.830.41 lacs and Rs.1,374.40 lacs, respectively.

For the quarter ended June 30, 2019 the Company had total income of Rs.7,653.07 lacs and profit after tax of Rs. 867.41 lacs.


Company Finances – Freshtrop Fruits Limited

The brief financial information of the Company as extracted from the un‐audited standalone financial statements under Ind AS for the quarter ended June 30, 2019 and from audited financial statements for the last three years being March 31, 2019, March 31, 2018 and March 31, 2017 is provided below:

[In Rs. Lakhs]

ParticularsQuarter
Ended June  30,
2019
12 Months period ended March 31
(Audited)
201920182017
Total Income7653.0717605.0217795.8714522.81
Total Expenses (excluding finance cost, depreciation & amortization)6248.7815166.1815911.3512695.47
Interest
Depreciation and amortization expenses133.37517.51416.10395.94
Profit before tax1218.981789.681387.941357.73
Provision for tax
(including Deferred Tax)
351.56415.28499.85465.14
Profit /(Loss) after tax867.411374.40830.41892.59
Equity Share Capital1214.501214.50*1214.501214.50
Other Equity7297.476428.515047.894216.01
Networth8511.977643.016262.395430.51
Total Debt (Excluding working capital loans)1843.513872.354148.072608.83

Freshtrop Fruits Limited Buyback Dates

Date of Board Meeting approving the BuybackFriday, August 23, 2019
Date of publication of Public Announcement for BuybackMonday, September 30, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersFriday, October 11, 2019
Buyback Opening date
Buyback Closing date
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

As per Regulation 7(i) of the Buyback Regulations, the Company has made a Public Announcement for the Buy Back of Equity Shares published on September 30, 2019 in the following newspapers, which is within two working days from the date of passing of the special resolution by the Shareholders of the Company on September 26, 2019.

PublicationLanguageEdition
Financial ExpressEnglishAll
JansattaHindiAll
Financial ExpressGujaratiAhmedabad

Necessity of Freshtrop Fruits Limited Buyback

The Share buyback is the acquisition by a company of its own shares. The objective is to return surplus
cash to the shareholders holding equity shares of the Company. Buyback is a more efficient form of
distributing surplus cash to the shareholders holding equity shares of the Company, inter‐alia, for the
following reasons:

  • The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding thereby enhancing the overall return for them.
  • Buyback, which is being implemented through the tender offer route as prescribed under the
    Buyback Regulations, would involve a reservation of 15% of the number of Equity Shares which the
    Company proposes to buyback or such number of Equity Shares entitled as per the shareholding of
    small shareholders as on the record date, whichever is higher, shall be reserved for the small
    shareholders as part of this Buyback.
  • Buyback is generally expected to improve return on equity and improve earnings per share by reduction in the equity base of the Company, thereby leading to long term increase in shareholders’ value.

Impact of Freshtrop Fruits Limited 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 Equity Shareholders up to their Buyback Entitlement, the funds deployed by the Company towards the Buyback would be upto Rs.11,00,00,000.

Assuming full acceptance of Equity Shares in the Buy‐back, the aggregate percentage shareholding of
the Promoter and Promoter Group of the Company after the Buy‐back may increase or decrease, as
the case may be, from 58.03%, which is the shareholding as on the date to [●]% of the post Buy‐back
Equity Share capital of the Company.

Full acceptance of Equity Shares in the Buy‐back, the aggregate percentage shareholding of the public after the Buy‐back, may increase or decrease, as the case may be, from 41.97%, which is the shareholding as on the date to [●]% of the post Buy‐back Equity Share capital of the Company.

Salient financial parameters pursuant to the Buy‐back based on the audited financial statements as of March 31, 2019, of the Company are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2018)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)7643.016543.01
Return on Net worth (%)17.98%21.01%
Earnings Per Share (Rs)11.3212.33
Book Value per Share (Rs)11.3212.33
P/E as per the latest audited standalone financial statements62.9358.71
Total Debt / Equity Ratio0.510.59

Basis of Calculating Freshtrop Fruits Limited Buyback Price

The Buyback Price of Rs. 110  per Equity Share has been arrived at after considering various factors including but not limited to the trends in the volume weighted average prices and closing price of the Equity Shares on the Stock Exchange where the Equity Shares of the Company are listed during last 2 months, the net worth of the Company, price earnings ratio, impact on other financial parameters of the Company and possible impact of buyback on the return on net worth and earnings per share.

More on Freshtrop Fruits Limited Buyback Price Calculation

The Equity Shares of the Company are proposed to be bought back at a price of Rs.110 (Rupees One Hundred Ten only) per Equity Share.

The equity shares are being offered for buyback at a premium of 16.34% over the closing price of equity shares on BSE being Rs.94.55, on the date of intimation of Board meeting to consider the proposal for buyback to BSE (i.e. on August 20, 2019.


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buy Back would be Rs 11,00,00,000 (Rupees Eleven Crores) excluding the transaction cost relating to the buyback.

The funds for the implementation of the proposed Buyback will be sourced out of free reserves and securities premium of the Company and any other source as may be permitted by the Buyback Regulations or the Act. Borrowed funds from banks and financial institutions, if any, will not be used for the Buyback.

Company shall transfer from its free reserves or securities premium account, a sum equal to the nominal value of the equity shares bought back through the Buyback to the Capital Redemption Reserve account.


Freshtrop Fruits Limited – Manager to the Buyback

Chartered Capital And Investment Limited
711, Mahakant, Opp. V S Hospital, Ellisbridge, Ahmedabad – 380006
Tel: +91‐79‐2657 7571/2657 5337, Fax: +91‐79‐2657 5731
Email: [email protected],
Website: www.charteredcapital.net
Investor Grievance Email: [email protected]
Contact Person: Mr. Manoj Kumar Ramrakhyani
/Mr. Sagar Bhatt
SEBI Registration No.: INM000004018, Validity: Permanent
CIN: L45201GJ1986PLC008577

Freshtrop Fruits Limited – Registrar to the Buyback

Bigshare Services Private Limited
1st Floor, Bharat Tin Works Building, Opp Vasant Oasis,
Makwana Road, Marol, Andheri (E), Mumbai ‐ 400059
Tel: +91‐22‐ 6263 8200; Fax: +91‐22‐ 6263 8280
Email: [email protected]
Website:www.bigshareonline.com
Contact person: Mr. Arvind Tandel;
SEBI Registration Number: INR000001385
Validity Period :Permanent
CIN: U99999MH1994PTC076534

Freshtrop Fruits Limited Contact Details

Company Contact Details

Freshtrop Fruits Limited

Corporate Identification No. (CIN) : L15400GJ1992PLC018365
Registered Office:A‐603, Sapath‐IV, Opp Karnavati Club, SG Highway, Ahmedabad 380015,
Contact Person: Mr. Ronak Dhruve, Company Secretary & Compliance Officer
Tel : +91‐79‐40307050‐57, Email:[email protected], Website: www.freshtrop.com

 


Freshtrop Fruits Limited Buyback News

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

News 2 – Freshtrop Fruits Limited Ltd – Public Announcement


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