Granules India Buyback Review, Offer Details, Price, Dates, Size & more

In this article, they will discuss about Granules India Limited Buyback offer, buyback price, buyback size, Granules India Buyback record date, company financial, buyback necessity and its impact on company.

Granules India Limited Buyback Details

Buyback TypeTender Offer
Opening DateNA
Closing DateNA
Buyback Offer AmountRs.250,00,00,000
Buyback No. of Shares1,25,00,000
Face ValueRs.1
Date of Buyback ApprovalJanuary 21, 2020
Date of Public AnnouncementMarch 12, 2020
Buy Back PriceRs.200
Buy Back Premium55.35%
Date of Board MeetingJanuary 21, 2020

Granules India Buyback Opening and Closing Date

The starting and closing date of this buyback is from [●] to [●].

Granules India 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 4.92% of the total number of equity shares.

Granules India Buyback Record Date

The decided record date is March 20, 2020.

Granules India Buyback Price

At a price of Rs.200 per Equity Share.

Granules India Buyback Size

At a buyback price of Rs.200 payable in cash for an aggregate maximum amount of Rs.250,00,00,000.

Granules India 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.


Granules India 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%2002004000085105.40%
40%400200800001702010.81%
60%6002001200002553016.21%
80%8002001600003404021.62%
100%10002002000004255027.02%

Profit is calculated from March 16, 2020 share price i.e. Rs.157.45 per share of Granules India Limited.

According to the above table, if a shareowner applies for 1000 shares of Granules India limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.157.45 per share & receive Rs.8510 as profit amount & 5.40% 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.157.45 & receive a profit of Rs.25530 @ 16.21% profit percentage.


Granules India Limited Buyback Overview

Granules India BuybackThe Company was incorporated as Granules India Private Limited on March 18, 1991 at Hyderabad, Telangana (erstwhile Andhra Pradesh), as a private limited company under the Companies Act, 1956.

Subsequently, the name of their Company was changed to Granules India Limited due to conversion from a private company to a public company on February 8, 1993. Their products are sold in more than 60 countries to over 250 customers.

They are a pharmaceutical company headquartered in Hyderabad with over 25 years of operations. Their business covers the entire pharmaceutical industry value chain including active pharmaceutical ingredients (“APIs”), pharmaceutical formulation intermediates (“PFIs”) and finished dosage formulations (“FDFs”).


Company Finances – Granules India 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]

ParticularsFor the period ended Sept 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income121,250.83212,692.17167,764.05138,868.92
Total Expenses (excluding Interest, depreciation)101,144.66188,521.49146,918.76118.188.60
Finance Cost1,349.932,836.023,292.703,216.41
Depreciation and Amortization5,025.259,077.217,591.647,135.16
Profit before tax20,106.1724,170.6820,845.2920,680.32
Provision for tax
(including Deferred Tax)
4,721.147,986.636,929.106,397.65
Profit /(Loss) after tax15,385.0316,184.0513,916.1914,282.67
Equity Share Capital2,542.482,542.482,538.382,287.03
Reserves153,813.49139,781.03125,281.4386,148.58
Net Worth156,355.97142,323.51127,819.8188,435.61
Total Debt92,743.6499,117.9497,844.1365,648.75

Granules India Limited Buyback Dates

Date of Board Meeting approving the BuybackJanuary 21, 2020
Date of publication of Public Announcement for BuybackMarch 12,, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersMarch 20, 2020
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

The Public Announcement dated March 11, 2020 was published on March 12, 2020 in the following newspapers, in accordance with Regulation 7(i) of the Buyback Regulations, within two working days from the date of declaration of results of the Postal Ballot or special resolution i.e. March 10, 2020:

PublicationLanguageEdition
Business StandardEnglishAll editions
Business StandardHindiAll editions
Nava TelanganaTeluguHyderabad Edition

Necessity of Granules India 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:

  1. The Buy-back gives an option to the equity shareholders to either participate in the Buy-back and receive cash in lieu of Equity Shares accepted under the Buy-back or not participate in the Buy-back and enjoy a resultant increase in their percentage of shareholding in the Company post the Buy-back;
  2. The Buyback would help in improving financial ratios by reducing the equity base of the Company; and
  3. The Buy-back which is being implemented through the Tender Offer route as prescribed under the SEBI Buyback Regulations, would involve a reservation of 15% of the Buyback Size for small shareholders

Impact of Granules India 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/treasury income.

The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its requirements for business operations.

The Promoter and Promoter Group and persons in control of the Company have expressed their intention to participate in the Buyback and may tender up to their respective shareholding as on the Record Date or such lower number of Equity Shares in accordance with the provisions of the Buy-Back Regulations.

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-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Lakhs)142,323.51117,323.51
Return on Net worth (%)11.98%13.20%
Earnings Per Share Basic (Rs)6.376.70
Earnings Per Share Diluted (Rs)6.356.68
Book Value per Share (Rs)55.9848.53
Total Debt / Equity Ratio0.700.84

Basis of Calculating Granules India Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.200 (Rupees Two Hundred only) per Equity Share.

The Buyback Price of Rs.200 (Rupees Two Hundred only) per Equity Share has been arrived at after considering various factors including, but not limited to (i) the trends in the volume weighted average prices of the Equity Shares on the Stock Exchanges where the Equity Shares are listed, (ii) the net worth of the Company, (iii) price earnings ratio, (iv) impact on other financial parameters and (v) the impact on the earnings per Equity Share.

The Buyback Price represents

  • Premium of 55.35% and 55.56% over the volume weighted average market price of the equity shares on BSE and NSE, respectively, during the three months preceding the date of the board meeting to consider the proposal of the Buyback.
  • A Premium of 43.65% and 43.02% over the volume weighted average market price of the equity shares on BSE and NSE, respectively, during the two weeks preceding the date of the board meeting to consider the proposal of the Buyback.
  • Premium of 35.92% and 35.87% over the closing market price of the equity shares on BSE and NSE, respectively, preceding the date of the board meeting to consider the proposal of the Buyback.

The closing market price the equity shares as on the date of intimation of the date of the Board Meeting for considering the Buy-back to the Stock Exchanges, being January 16, 2020, was Rs.144.75 on BSE and Rs.144.75 on NSE


Source of Funds for the Buyback

Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback would be Rs.250,00,00,000 excluding any expenses incurred or to be incurred for the Buyback like filing fees payable to SEBI, advisors fees, transaction costs viz. brokerage, applicable taxes such as securities transaction tax, goods and service tax, stamp duty, public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses.

The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.

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 the details of such transfer shall be disclosed in its subsequent audited financial statements.

The Company has confirmed that the funds for the Buyback will be made available out of its internal accruals and not out of funds borrowed, if any, from banks and financial institutions.


Granules India Limited – Manager to the Buyback

Motilal Oswal Investment Advisors Limited
Motilal Oswal Tower, Rahimtullah Sayani Road
Opposite Parel ST Depot, Prabhadevi, Mumbai- 400 025
Maharashtra, India
Tel: +91 22 7193 4380 | Fax: +91 22 7193 4315
E-mail: gil.buyback2020@motilaloswal.com
Investor Grievance E-mail: moiaplredressal@motilaloswal.com
Website: http://www.motilaloswalgroup.com
Contact person: Kristina Dias/ Subodh Mallya
SEBI Registration No.: INM000011005
Validity Period: Permanent
CIN: U67190MH2006PLC160583

Granules India Limited – Registrar to the Buyback

KFin Technologies Private Limited
Selenium, Tower B Plot No. 31-32, Financial District Nanakramguda, Srilingampally Hyderabad Rengareddi 500 032 Telangana, India
Tel: +91 40 6716 2222 Fax: +91 40 2343 1551
E-mail: gil.buyback2020@kfintech.com
Investor grievance e-mail: einward.ris.ipo@kfintech.com Website: www.kfintech.com
Contact Person: M Murali Krishna
SEBI Registration No.: INR000000221
Validity Period: Permanent
CIN: U67190MH1999PTC118368

Granules India Limited Contact Details

Company Contact Details
Granules India Limited
Registered Office: Second Floor, Block III, My Home Hub, Madhapur,
Hyderabad – 500081, Telangana – India
Phone: +91 40 3066 0000 | Fax: +91 40 2311 5145 | Email: investorrelations@granulesindia.com | Website: http://www.granulesindia.com
Corporate Identification Number (CIN): L24110TG1991PLC012471
Contact Person: Ms. Chaitanya Tummala, Company Secretary, Compliance Officer and Nodal Office

 


Granules India Limited Buyback News

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

News 2 – Granules India Ltd – Public Announcement


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