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 Type||Tender Offer|
|Buyback Offer Amount||Rs. 11,00,00,000/-|
|Buyback No. of Shares||10,00,000|
|Face Value||Rs. 10|
|Date of Buyback Approval||Thursday, September 26, 2019|
|Date of Public Announcement||Monday, September 30, 2019|
|Buy Back Price||Rs. 110/-|
|Buy Back Premium||8.23%|
|Date of Board Meeting||Friday, 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 Ratio||Total Shares Accepted||Buyback Price||Buyback Amount||Profit||Profit%|
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
The 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]
Ended June 30,
|12 Months period ended March 31|
|Total Expenses (excluding finance cost, depreciation & amortization)||6248.78||15166.18||15911.35||12695.47|
|Depreciation and amortization expenses||133.37||517.51||416.10||395.94|
|Profit before tax||1218.98||1789.68||1387.94||1357.73|
|Provision for tax|
(including Deferred Tax)
|Profit /(Loss) after tax||867.41||1374.40||830.41||892.59|
|Equity Share Capital||1214.50||1214.50*||1214.50||1214.50|
|Total Debt (Excluding working capital loans)||1843.51||3872.35||4148.07||2608.83|
Freshtrop Fruits Limited Buyback Dates
|Date of Board Meeting approving the Buyback||Friday, August 23, 2019|
|Date of publication of Public Announcement for Buyback||Monday, September 30, 2019|
|Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders||Friday, 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.
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
- 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-back||Post Buy-back|
(Assuming Full Acceptance)
|Net worth (Rs in Lakhs)||7643.01||6543.01|
|Return on Net worth (%)||17.98%||21.01%|
|Earnings Per Share (Rs)||11.32||12.33|
|Book Value per Share (Rs)||11.32||12.33|
|P/E as per the latest audited standalone financial statements||62.93||58.71|
|Total Debt / Equity Ratio||0.51||0.59|
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],
Investor Grievance Email: [email protected]
Contact Person: Mr. Manoj Kumar Ramrakhyani
/Mr. Sagar Bhatt
SEBI Registration No.: INM000004018, Validity: Permanent
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]
Contact person: Mr. Arvind Tandel;
SEBI Registration Number: INR000001385
Validity Period :Permanent
Freshtrop Fruits Limited Contact Details
|Company Contact Details|
Freshtrop Fruits Limited
Corporate Identification No. (CIN) : L15400GJ1992PLC018365
Freshtrop Fruits Limited Buyback News
News 2 – Freshtrop Fruits Limited Ltd – Public Announcement
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