Aurobindo Pharma Limited Buyback 2024

1. Founding and Early Operations: Founded in 1986 by Mr. P.V. Ramprasad Reddy, Mr. K. Nityananda Reddy, and a team of professionals, Aurobindo Pharma began operations in 1988-89 with a single unit manufacturing Semi-Synthetic Penicillin (SSP) in Pondicherry.

2. Public Listing and Market Leadership: Aurobindo Pharma became a public company in 1992 and listed on Indian stock exchanges in 1995. It is a market leader in Semi-Synthetic Penicillin and has a strong presence in several therapeutic segments, including neurosciences (CNS), cardiovascular (CVS), anti-retroviral, anti-diabetics, gastroenterology, and antibiotics.

3. Specialty Generics and R&D Focus: The company has entered the high-margin specialty generic formulations segment, evolving into a knowledge-driven entity with a strong R&D focus. It manufactures active pharmaceutical ingredients (APIs) and formulation products.

4. Global Manufacturing and Revenue: Aurobindo Pharma has manufacturing facilities in several countries, including 11 units for APIs/intermediates and 15 units for formulations across India, the USA, Brazil, and Portugal. The company achieved a revenue of USD 2.6 billion in FY2017-18.

5. International Presence and Regulatory Approvals: The company exports to over 150 countries, with around 90% of its revenues from international operations. It has multiple facilities approved by leading regulatory agencies, such as USFDA, EU GMP, UK MHRA, and others.

6. Patents and Filings: Aurobindo Pharma is one of the largest filers of Drug Master Files (DMFs) and Abbreviated New Drug Applications (ANDAs) in India, leveraging in-house R&D for rapid filing of patents and regulatory submissions worldwide.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jul 30 2024
Buyback Opening Date: Aug 05 2024
Buyback Closing Date: Aug 09 2024
Buyback Offer Amount: ₹ 750 Cr.
Date of Board Meeting approving the proposal: Jul 18 2024
Date of Public Announcement: Jul 18 2024
Buyback Offer Size: 0.88%
Buyback Number of Shares: 51,36,986
FV: 1
Buyback Price: ₹ 1460 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 51,36,986 (Fifty One Lakh Thirty Six Thousand Nine Hundred Eighty Six only) equity shares of the Company (representing 0.88% of the total number of equity shares in the paid-up share capital of the Company) at a price of 1,460/- (Indian Rupees Fourteen Hundred Sixty Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 750,00,00,000/-(Indian Rupees Seven Hundred Fifty Crores Only).

Salient financial parameters:

Particulars (In cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 23,099 24,775 23,455 24,855 29,002
Expenses + 18,249 19,497 19,060 21,148 23,176
Operating Profit 4,849 5,278 4,396 3,707 5,826
OPM % 21% 21% 19% 15% 20%
Other Income + 166 3,195 152 291 366
Interest 305 74 49 140 290
Depreciation 967 1,055 1,127 1,245 1,522
Profit before tax 3,743 7,344 3,373 2,612 4,380
Tax % 24% 27% 22% 26% 28%
Net Profit + 2,844 5,334 2,647 1,928 3,169
EPS in Rs 48.56 91.05 45.2 32.9 54.15
Dividend Payout % 6% 4% 20% 23% 3%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  Aurobindo Pharma Limited in Demat or physical form as on the record date [30-07-2024].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [05-08-2024] by selling your shares through your broker on NSE or BSE.
3. Then on [28-08-2024], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 137 Shares at CPM of Rs. 1357 (2,00,000/1460)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 185909 185909 185909 185909
No. of Shares Buyback 45 68 103 137
Buyback Profit 4635 7004 10609 14111
Profit% 2.49% 3.77% 5.71% 7.59%

21 Comments

    Recd. email for 13/110.
    Dates: Opening.,.. 5/8
    Closing…..,.9/8
    Settlement……. 19/8
    ER is much less than my expectation of 25/30…%

    Reply

    “It is proposed that the income from buyback of shares by companies be chargeable in the hands of the recipient investor as dividend, instead of the current regime of additional income-tax in the hands of the company,” Sitharaman said.

    Reply

      Under the new structure, the entire amount received on buyback of shares would now be taxed as dividends in the hands of investors as per their tax slabs. Meanwhile, the cost of acquisition of shares tendered in the buyback will be considered as a capital loss, which will be eligible for set-off against other capital gains or carry forward.

      Reply

      Whether it will be applicable to buybacks already effected during the current year, any idea,?, if yes, then the concerned companies should compensate to shareholders, with tax amount saved by them, which would otherwise had to be paid by them as per old system,had this new proposal not been there.

      Reply

    In my opinion, neither the size nor the price is impressive.

    Reply

      1460 buyback price and 51 lakhs shares buyback offer only o.9 percent. Poorest offer amongst all recent buybacks

      Reply

    Big Buyback maybe 2000 cr.company have 30000cr reserve 1 shear will 100% work

    Reply

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