JB Chemicals Buyback Review, Offer Details, Price, Dates, Size & more

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

JB Chemicals Buyback Details

Buyback TypeTender Offer
Opening Date[●]
Closing Date[●]
Buyback Offer AmountRs. 130 Crores
Buyback No. of Shares29,54,545
Face ValueRs. 2
Date of Buyback ApprovalTuesday, November 12, 2019
Date of Public AnnouncementThursday, November 14, 2019
Buy Back PriceRs. 440/-
Buy Back Premium17.80%
Date of Board MeetingTuesday, November 12, 2019

JB Chemicals Buyback Opening and Closing Date

The starting and closing date of JB Chemicals Buyback is NA.

JB Chemicals Buyback Cash Offer

The Cash Offer to Buy-back up to 29,54,545 fully paid-up equity shares of the Company of face value of Rs. 2 each, representing 17.80% of the total number of equity shares.

JB Chemicals Buyback Record Date

The decided record date is Friday, November 22, 2019.

JB Chemicals Buyback Price

At a price of Rs.125 per Equity Share.

JB Chemicals Buyback Size

At a buyback price of Rs.440/- payable in cash for an aggregate consideration not exceeding Rs. 130 Crores.

JB Chemicals 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.


JB Chemicals 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%20044088000104002.68%
40%400440176000208005.36%
60%600440264000312008.04%
80%8004403520004160010.72%
100%10004404400005200013.40%

Profit is calculated from 20 Nov 2019 share price i.e. Rs.388 per share of J. B. Chemicals.

According to the above table, if a shareowner applies for 1000 shares of J. B. Chemicals & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.440 per share & receive Rs.10400 as profit amount & 2.68% 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.440 & receive a profit of Rs.31200 @ 8.04% profit percentage.


J. B. Chemicals & Pharmaceuticals Limited Buyback Overview

J. B. Chemicals BuybackJ. B. Chemicals & Pharmaceuticals Limited (JBCPL) was incorporated on December 18, 1976 in the State of Maharashtra under the name J.B. Mody Chemicals & Pharmaceuticals Limited.

The Initial Public Offer of JBCPL was in the year 1985 and the Company was consequently listed on BSE. Later, JBCPL also listed its Equity Shares on NSE.

JBCPL is engaged in the manufacture and sale of pharmaceutical formulations, herbal products and active pharmaceutical ingredients. The Company has nine manufacturing facilities spread over Ankleshwar and Panoli (Gujarat State) and Daman (Union Territory).

Some of the Company’s facilities have been approved by International health authorities such as US FDA, MHRA UK, TGA Australia, Health Canada, MCC South Africa, MoH Ukraine and MoH Japan. JBCPL exports to many countries worldwide with presence in US, Australia, South Africa, Europe and other developing countries, Russia and CIS.

The Company has two operating subsidiaries namely, LLC Unique Pharmaceutical Laboratories (in Russia) and Biotech Laboratories (Pty) Ltd. (in South Africa).

Financial Growth:

As per audited standalone financial statements for the financial years ended March 31, 2019, 2018 and 2017, the Company recorded total income of Rs.1,541.41 Crores, Rs.1,289.99 Crores and Rs.1,244.58 Crores respectively, and Profit after Tax for financial years ended March 31, 2019, March 31,2018 and March 31, 2017 of Rs.182.06 Crores, Rs.128.00 Crores and Rs.172.96 Crores respectively.

As per Limited Review of half yearly unaudited standalone financial results for September 30, 2019 the Company recorded total income of Rs.869.37 Crores and Profit after Tax of Rs.155.11 Crores respectively.


Company Finances – JB Chemicals

The salient features of the financial information of the Company for last three financial years as at and for the financial year ended March 31, 2019, March 31, 2018 and March 31, 2017 and as at and for the three months period ended June 30, 2019 on consolidated as well as standalone basis are given below:

[In Rs. Crores]

Particulars30-Sep-19Year Ended March 31
201920182017
Total Income869.371,541.411,289.991,244.58
Total Expenses (excluding Finance Costs and Depreciation)645.91,213.201,051.58976.54
Finance Cost1.684.123.415
Depreciation31.8554.8255.9546.26
Profit Before Tax189.94269.28179.04216.78
Tax Expense34.8387.2251.0443.82
Profit After Tax155.11182.06128172.96
Other Comprehensive Income-2.580.29-2.42-2.7
Total Comprehensive Income for the Period / Year152.53182.35125.59170.26
Equity Share Capital16.0516.0516.7116.96
Reserves & Surplus*1,572.681,468.521,436.671,370.90
Net worth1,588.721,484.561,453.391,387.86
Total debt (excluding working capital loans)#1.05

JB Chemicals Ltd Buyback Dates

Date of Board Meeting approving the BuybackTuesday, November 12, 2019
Date of publication of Public Announcement for BuybackThursday, November 14, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible ShareholdersFriday, November 22, 2019
Buyback Opening date[●]
Buyback Closing date[●]
Last date of receipt of completed tender form and other specified document[●]
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

In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated June 4, 2019 for the Buyback of Equity Shares published on June 5, 2019 in the following newspapers:

PublicationLanguageEdition
Financial ExpressEnglishAll editions
JansattaHindiAll editions
Mumbai LakshadeepMarathiRegional Edition

Necessity of JB Chemicals Buyback

The Buy-back is being undertaken by the Company to enhance shareholders’ value and improve financial ratios. Additionally, the Buy-back is being undertaken for the following reasons:

  • The Buy-back will help the Company to distribute surplus funds to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders;
  • Buy-back, which is being implemented through the Tender Offer as prescribed under the Buy-back Regulations, would involve a reservation of 15% of the Buy-back Size for 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 Shareholders” as defined under Regulation 2(i)(n) of the Buy-back Regulations;
  • Buyback may help in improving financial ratios like earnings per share, return on assets and return on equity calculated on the basis of financial statements, by reducing the equity base of the Company; and
  • The Buy-back gives an option to the Eligible Shareholders to either choose to participate in the Buy-back and receive cash in lieu of their Equity Shares which are accepted under the Buy-back or choose not to participate in the Buy-back and get a resultant increase in their percentage shareholding in the Company post the Buy-back, without additional investment.

Impact of JB Chemicals Buyback on the Company

The Company believes that the Buy-back 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.

Assuming that the response to the Buy-back is 100% (full acceptance) from all the Eligible Shareholders in proportion of their respective Buy-back Entitlement, the funds deployed by the Company towards the Buy-back would be Rs.130 Crores excluding Transaction Costs.

Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2019 are as under:

Parameter Pre Buy-backPost Buy-back
Net worth (Rs in Crores)1,484.561,354.56
Return on Net worth (%)12.26%13.44%
Earnings Per Share (Rs)22.1522.98
Book Value per Share (Rs)185.02175.28
P/E as per the latest audited standalone financial statements16.3615.77
Total Debt / Equity Ratio0.020.02

Basis of Calculating JB Chemicals Buyback Price

The Equity Shares are proposed to be bought back at a price of Rs.440 per Equity Share. The Buy-back Price has been arrived at after considering various factors, including but not limited to, the volume weighted average market price of the Equity Shares of the Company on BSE and NSE where the Equity Shares of the Company are listed during 3 (three) months and 2 (two) weeks preceding the date of the Board Meeting, closing market price on the date of Board Meeting and the impact on the net worth of the Company.

More on JB Chemicals Buyback Price Calculation

The Buy-back Price of Rs.440 per Equity Share represents :

  • a premium of 17.80% over the volume weighted average market price of the Equity Shares on the NSE (the Stock Exchange where the maximum volume of trading in the Equity Shares is recorded) for 3 (three) months preceding the date of the Board Meeting.
  • premium 19.56% over the volume weighted average market price of the Equity Shares on the NSE for 2 (two) weeks preceding the date of the Board Meeting.
  • a premium of 20.98% over the closing market price of the Equity Shares on NSE as on the date of intimation to consider the proposal of the Buy-back Offer in the Board Meeting.
  • The closing market price of the Equity Shares as on day prior to the date of the Board Meeting (since the date of Board Meeting (November 12, 2019) was a non- trading day) was Rs.397.30 on BSE and Rs.396.80 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 Buy-back would be ₹130 Crores excluding Transaction Costs.
  • The Buy-back will be financed out of free reserves, current surplus and / or cash and cash equivalents and / or internal accruals of the Company and / or other permissible sources of funds but not from any borrowed funds.

J. B. Chemicals – Manager to the Buyback

Vivro Financial Services Private Limited

Address: 607, 608 Marathon Icon, Opp. Peninsula Corporate Park,
Off Ganpatrao Kadam Marg, Veer Santaji Lane,
Lower Parel, Mumbai – 400 013, Maharashtra, India.
Tel.:+91 22 6666 8040 / 41 / 42 Fax: +91 22 6666 8047
E-mail: investors@vivro.net Website: www.vivro.net
Contact Person(s): Mr. Harish Patel/ Mr. Yogesh Malpani
SEBI Registration Number: INM000010122 Validity: Permanent
CIN: U67120GJ1996PTC029182
Validity Period: Permanent

J. B. Chemicals – Registrar to the Buyback

Link Intime India Private Limited

Address: C 101, 247 Park, L B S Marg, Vikhroli (West),
Mumbai – 400 083, Maharashtra, India.
Tel. No.: +91 22 4918 6200 Fax: + 91 22 4918 6195
Email: jbchem.buyback2019@linkintime.co.in;
Website: www.linkintime.co.in
Contact Person: Mr. Sumeet Deshpande
SEBI Registration Number: INR000004058 Validity: Permanent
CIN: U67190MH1999PTC118368

J. B. Chemicals & Pharmaceuticals Limited Contact Details

Company Contact Details
J. B. Chemicals & Pharmaceuticals Limited

Neelam Centre, B Wing, 4th floor, Hind Cycle Road, Worli, Mumbai 400 030, Maharashtra, India.
Corporate Office: Cnergy IT Park, Unit A2, 3rd floor & Unit A, 8th floor, Appa Saheb Marathe Marg, Prabhadevi, Mumbai 400 025, Maharashtra, India.
Corporate Identity Number (CIN): L24390MH1976PLC019380
Phone: +91-22-2439 5200 / 2439 5500; Fax: +91-22-2431 5331 / 2431 5334; Email: secretarial@jbcpl.com; Website: www.jbcpl.com;

 


JB Chemicals Buyback News

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

News 2 – J. B. Chemicals Ltd – Public Announcement

News 3 – JB Chemicals Buyback PDF / Letter of Offer PDF [Download]

News 4 – Blank Demat Tender Form


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