Insecticides India Limited Buyback 2024
1. Company Overview: Insecticides India Limited (IIL) is one of India’s leading agrochemical companies, founded in 2001. The company is engaged in the manufacturing and distribution of a wide range of agricultural chemicals, including insecticides, herbicides, fungicides, and plant growth regulators.
2. Business Model: IIL operates on a vertically integrated business model, encompassing everything from research and development to manufacturing and distribution. The company has a strong focus on both the domestic market and export opportunities. It has a comprehensive supply chain that ensures the availability of products across India and in international markets.
3. Product Portfolio: The company’s product portfolio includes popular agrochemical brands such as Lethal, Pulsor, Hakama, and Green Label. IIL is also known for its collaborations with global agrochemical giants, which allows it to introduce new and innovative products into the Indian market.
4. Branches and Subsidiaries: Insecticides India Limited has a widespread distribution network with over 4,000 distributors and 60,000 dealers across India. The company operates multiple manufacturing units located in various parts of the country, including Rajasthan, Jammu & Kashmir, and Gujarat. Additionally, IIL has a subsidiary, Shogun Organics Ltd., which specializes in manufacturing household insecticides.
5. Research and Development: IIL places a strong emphasis on research and development to drive innovation in its product offerings. The company has a state-of-the-art R&D center approved by the Department of Scientific and Industrial Research (DSIR), which focuses on developing new formulations and enhancing product efficacy.
6. Growth and Market Position: Over the years, Insecticides India Limited has shown consistent growth in both revenue and market share. The company has expanded its footprint in international markets, exporting its products to over 30 countries. Its strategic partnerships, strong distribution network, and focus on innovation have solidified its position as a leading player in the Indian agrochemical industry.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Sep 11 2024 |
| Buyback Opening Date: | Sep 18 2024 |
| Buyback Closing Date: | Sep 24 2024 |
| Buyback Offer Amount: | ₹ 50 Cr. |
| Date of Board Meeting approving the proposal: | Aug 30 2024 |
| Date of Public Announcement: | Aug 30 2024 |
| Buyback Offer Size: | 1.69% |
| Buyback Number of Shares: | 5,00,000 |
| FV: | 10 |
| Buyback Price: | ₹ 1000 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In Cr) | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales + | 1,363 | 1,420 | 1,504 | 1,801 | 1,966 |
| Expenses + | 1,207 | 1,268 | 1,333 | 1,679 | 1,803 |
| Operating Profit | 156 | 153 | 171 | 122 | 163 |
| OPM % | 11% | 11% | 11% | 7% | 8% |
| Other Income + | 2 | -2 | 3 | 1 | 10 |
| Interest | 24 | 7 | 7 | 13 | 11 |
| Depreciation | 24 | 25 | 26 | 26 | 29 |
| Profit before tax | 110 | 119 | 141 | 84 | 133 |
| Tax % | 22% | 22% | 24% | 25% | 23% |
| Net Profit + | 86 | 93 | 107 | 63 | 103 |
| EPS in Rs | 27.75 | 30.14 | 36.16 | 21.28 | 34.67 |
| Dividend Payout % | 10% | 4% | 6% | 14% | 9% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 199400 | 199400 | 199400 | 199400 |
| No. of Shares Buyback | 66 | 100 | 150 | 200 |
| Buyback Profit | 198 | 300 | 450 | 600 |
| Profit% | 0.10% | 0.15% | 0.23% | 0.30% |
18 Comments
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Today I came out with nominal profit.
I think you have done it right
18th being a holiday for Maharashtra, the date of opening of the Buyback is preponed to 17/9/2024 ….. source : corrigendum issued n received through the mail.
Dear SRK Ji,it looks amazing and astonishing to see that you have been participating in almost all the buybacks. May I have the honour and privilege of knowing the return you have made on buybacks recently. Just curious, that’s all. Will miss you dearly if buybacks are not going to be there after October.
Not much. Earlier I used to study and participate under the guidance of my learned guru Sri ANIKET JI. Now a days, I am engaged otherwise and hence I don’t find much time to study. I am participating in almost all without taking in to account its profitability and hence the returns are not significant. I am happy with the overall little gain. I am not that much ambitious. Thanks for giving me an opportunity to express my feelings. God bless you with all the best.
Thank you so much for your prompt and frankly crafted response SRK Ji.Wish you good luck and good health. Hope buybacks and this zone will remain alive and the Ministry concerned will be conscious of our fears 🙏
Looks like this will be the final buyback under the exempt income regime. Even if no shareholder vote is needed, the window of time remaining seems too narrow to push another one through.
ER is 7/92 in my case. Buyback dates are from 18/9/2024 to 24/9/2024. Last date for settlement of the bids is 01/10/2024 which is surprising n damaging.
It’s mentioned that settlement may be on or before the indicated date. This may be an eye wash and to calm down the investors.
The offer document refers to the old regime only in the section on taxation. Also, promoters are participating. I think you can rely on them to make sure the buyback is completed on time so that the income they receive will be exempt.
Can it be considered if it comes back to 920 range?
In annual report approximately 4.5% shares are hold by people who have upto 500 shares.
I am a newbie so dont know how to get the retail number.
What is expected ER? Any idea?
It happens sometimes, Vedant ji After all to err is human. This looks the last of the kind. So may be never again. Wishing you good luck.
Skipped this one, the last few buybacks have surprised in a negative way.
Absolutely 💯
Even if any one has been unfortunate to have bought, please don’t make distress sale. The fundamentals look good and future may be better.
May be good to buy incase available with 12 to 15% margin. Hope none of us have bought after the Board meeting announcement.
Nope…Skipped
Bought And Caught as well🙂