Sun Pharmaceutical Industries Buyback Review, Offer Details, Price, Dates, Size & more

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

Sun Pharmaceutical Industries Limited Buyback Details

Buyback TypeOpen Market
Opening DateMarch 26, 2020
Closing DateSeptember 25, 2020
Buyback Offer AmountRs.1700,00,00,000
Buyback No. of Shares4,00,00,000
Face ValueRs.1
Date of Buyback ApprovalMarch 17, 2020
Date of Public AnnouncementMarch 19, 2020
Buy Back PriceRs.425/-
Buy Back Premium1.74%
Date of Board MeetingMarch 17, 2020

Sun Pharmaceutical Industries Buyback Opening and Closing Date

The starting and closing date of this buyback is from March 26, 2020 to September 25, 2020.

Sun Pharmaceutical Industries Buyback Cash Offer

Cash Offer to Buy-back up to 4,00,00,000 fully paid-up equity shares of the Company of face value of Rs.1 each, representing 1.67% of the total number of equity shares.

Sun Pharmaceutical Industries Buyback Record Date

The decided record date is March 26, 2020.

Sun Pharmaceutical Industries Buyback Price

At a price of Rs.425 per Equity Share.

Sun Pharmaceutical Industries Buyback Size

At a buyback price of Rs.425 payable in cash for an aggregate maximum amount of Rs.1700,00,00,000.

Sun Pharmaceutical Industries 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.


Sun Pharmaceutical Industries 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%20042585000130003.61%
40%400425170000260007.22%
60%6004252550003900010.83%
80%8004253400005200014.44%
100%10004254250006500018.06%

Profit is calculated from March 26, 2020 share price i.e. Rs.360 per share of Sun Pharmaceutical Industries Limited.

According to the above table, if a shareowner applies for 1000 shares of Sun Pharmaceutical Industries limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.425 per share & receive Rs.13000 as profit amount & 3.61% 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.425 & receive a profit of Rs.39000 @ 10.83% profit percentage.


Sun Pharmaceutical Industries Limited Buyback Overview

Sun Pharmaceutical Industries Limited BuybackThe Company was initially established in the year 1982 as a partnership firm named ‘M/s. Sun Pharmaceutical Industries’ and subsequently registered and incorporated as a joint stock company (as a public limited company) on March 1, 1993, under the provisions of Part IX of the Companies Act, 1956. The Company obtained Certificate of Commencement of Business vide certificate dated March 18, 1993.

Sun Pharma is the world’s foureth largest specialty generic pharmaceutical company (Source – Evaluate Pharma) and India’s top pharmaceutical company (Source – AIOCD AWACS). A vertically integrated business and a skilled team enables it to deliver high-quality products, trusted by customers and patients in over 100 countries across the world, at affordable prices. The Company’s global footprint is spread across North America, Western Europe, Japan, Australia & New Zealand, Israel and about 80 emerging markets.


Company Finances – Sun Pharmaceutical Industries 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. crores]

ParticularsFor Six Months ended Sept 30, 2019 (Unaudited)12 Months period ended March 31
(Audited)
201920182017
Total Income6,959.2111,574.6510,134.298,308.28
Total Expenses (excluding Interest, depreciation)4,905.008,546.958,027.997,679.23
Finance Cost171.72540.92388.31223.57
Depreciation and Amortization274.72552.95487.24422.28
Profit before tax1,607.77719.45280.25(16.80)
Provision for tax
(including Deferred Tax)
21.24(97.15)(25.39)6.04
Profit /(Loss) after tax1,586.53816.60305.64(22.84)
Equity Share Capital239.93239.93*239.93239.93
Other Equity23,352.6122,603.6822,082.6820,772.54
Networth23,592.5422,843.6122,322.6121,012.47
Total Debt5,773.016,436.646,884.016,046.61

Sun Pharmaceutical Industries Limited Buyback Dates

Date of Board Meeting approving the BuybackMarch 17, 2020
Date of publication of Public Announcement for BuybackMarch 19, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders[●]
Buyback Opening dateMarch 26, 2020
Buyback Closing dateSeptember 25, 2020
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

This Public Announcement (“Public Announcement”) is being made in accordance with the provisions of Regulation 16(iv)(b) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (“Buy-back Regulations”) and contains the disclosures as specified in Schedule IV read with Schedule I of the Buy-back Regulations.


Necessity of Sun Pharmaceutical Industries 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:

a. The Buy-back will help the Company to return surplus funds to its shareholders.

b. The Buy-back is generally expected to improve return on equity through distribution of surplus fund and improve earnings per shareby reduction in the equity base, thereby leading to long term increase in shareholder’s value.


Impact of Sun Pharmaceutical Industries Limited 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.

The Buy-back of Equity Shares shall not affect the existing management structure of the Company.

The amount required by the Company for the Buy-back (including the Transaction Costs) will be met from the current balances of cash and cash equivalents and / or internal accruals of the Company and / or such other permissible source of funds.

The Company confirms that as required under Section 68(2)(d) of the Act and under Regulation 4(ii) of the Buy-back Regulations, the ratio of the aggregate of secured and unsecured debts owed by the Company post Buy-back shall not be more than twice the paid-up equity share capital and free reserves based on both audited standalone and audited consolidated financial statements of the Company.

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)
Return on Net worth (%)
Earnings Per Share Basic (Rs)
Earnings Per Share Diluted (Rs)
Book Value per Share (Rs)
Total Debt / Equity Ratio

Basis of Calculating Sun Pharmaceutical Industries Buyback Price

The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs.425/- (Indian Rupees Four Hundred Twenty Five Only) per Equity Share.

The Maximum 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 Stock Exchanges during 3 months and 2 weeks preceding the date of intimation (March 12, 2020) to the Stock Exchanges of the Board Meeting to consider the proposal of the Buy-back (“Prior Intimation”), closing market price on the date of Prior Intimation and the potential impact on the net worth and earning per share of the Company.

The Buyback Price represents

  • Premium of 1.74% over the volume weighted average market price of the Equity Shares on NSE (the stock exchange where the maximum volume of trading in the Equity Shares is recorded) for 3 months preceding the date of the Prior Intimation which was Rs.417.75/- and
  • A premium of 8.30% over the volume weighted average market price of the Equity Shares on NSE (the recognized stock exchange where the maximum volume of trading in the Equity Shares is recorded) for 2 weeks preceding the date of the Prior Intimation which was Rs.392.41/-.

The closing market price of the Equity Shares as on the date of the Prior Intimation and Board Meeting was Rs.354.80/- and Rs.370.15/- respectively on NSE. The closing market price of the Equity Shares as on the date of the Prior Intimation and Board Meeting was Rs.354.85/- and Rs.370.55/- respectively on BSE.


Source of Funds for the Buyback

The amount required by the Company for the Buy-back (including Transaction Costs) will be met out of the balances in free reserves, current surplus and/or cash and cash equivalents and/or internal accruals and/ or liquid resources and/or such other permissible sources of funds of the Company, as per the Act and the Buy-back Regulations.


Sun Pharmaceutical Industries Limited – Manager to the Buyback

Vivro Financial Services Private Limited
607, 608 Marathon Icon, Opp. Peninsula Corporate Park,
Off Ganpatrao Kadam Marg, Veer Santaji Lane, Lower Parel, Mumbai – 400 013, Maharashtra, India.
Contact Person: Mr. Harish Patel / Mr. Bhargav Parekh
Email: investors@vivro.net | Website: www.vivro.net
Tel: +91 22 6666 8040/41/42 | Fax: +91 22 6666 8047
SEBI Registration Number: INM000010122 | Validity: Permanent | CIN: U67120GJ1996PTC029182

Sun Pharmaceutical Industries Limited – Registrar to the Buyback

Link Intime India Private Limited
Address: C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083, Maharashtra, India.
Telephone: 022 – 4918 6270/022 – 4918 6200 | Website: www.linkintime.co.in
Email ID: rnt.helpdesk@linkintime.co.in/ ipo.helpdesk@linkintime.co.in
Contact Person: Ms. Jiny Elizabeth | SEBI Registration Number: INR000004058 | Validity: Permanent
CIN: U67190MH1999PTC118368

Sun Pharmaceutical Industries Limited Contact Details

Company Contact Details
Sun Pharmaceutical Industries Limited
Corporate Identification Number: L24230GJ1993PLC019050
Registered Office: Sun Pharma Advanced Research Centre(SPARC), Tandalja, Vadodara – 390 012, Gujarat, India.
Corporate Office: SUN House, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai – 400063, Maharashtra, India.
Phone: +91 22 4324 4324 |Fax: +91 22 4324 4343 | E-mail ID: secretarial@sunpharma.com| Website: www.sunpharma.com
Contact Persons: Mr. Ashok I Bhuta (Compliance Officer)|Mr. Sunil Ajmera (Company Secretary & Compliance Officer)

 


Sun Pharmaceutical Industries Limited Buyback News

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

News 2 – Sun Pharmaceutical Industries Ltd – Public Announcement


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