Granules India Limited Buyback 2020
(i) It is a Pharma company. They have a strong presence in the ‘first line of defense’ products, including Paracetamol, Ibuprofen, Guaifenesin, and Metformin. They export nearly 60% of its revenue to the US and Europe.
(ii) The key customers include some of the leading generic, as well as, branded pharmaceutical companies.
(iii) They have emerged into a knowledge-driven, R&D focused, multi-product organization, with inherent strength in the efficient manufacturing of high-volume pharmaceutical products.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Mar 20 2020 |
| Buyback Opening Date: | Jun 08 2020 |
| Buyback Closing Date: | Jun 19 2020 |
| Buyback Offer Amount: | ₹ 250 Crores |
| Date of Board Meeting approving the proposal: | Jan 21 2020 |
| Date of Public Announcement: | Jan 21 2020 |
| Buyback Offer Size: | 4.92% |
| Buyback Number of Shares: | 1,25,00,000 |
| Price Type: | Tender Offer |
| FV: | 1 |
| Buyback Price: | ₹ 200 Per Equity Share |
Details of Buyback:
Subject to the approval of the Members of the Company, the board has approved a proposal to Buy-back up to 1,25,00,000 equity shares of the Company for an aggregate amount not exceeding Rs. 250 crores which is 4.92% of the total paid-up equity share capital, at Rs.200/- (Rupees two hundred only) per equity share (the "Buyback").
The Buyback is proposed to be made from all existing shareholders of the Company as on the record date on a proportionate basis under the tender offer route.
Salient financial parameters:
| Particulars(in Crs) | 2019 | 2018 | 2017 | 2016 | 2015 |
| Revenue | 2,126.92 | 1,677.64 | 1,388.69 | 1,334.78 | 1,216.27 |
| Expenditure | 1,794.44 | 1,393.27 | 1,110.53 | 1,059.06 | 1,003.53 |
| OPM % | 15.84 | 17.19 | 20.24 | 20.75 | 17.53 |
| Net Profit | 161.84 | 139.16 | 142.83 | 120.96 | 95.23 |
| NPM % | 7.71 | 8.41 | 10.39 | 9.11 | 7.85 |
| Equity | 25.43 | 25.38 | 22.87 | 21.67 | 20.43 |
| EPS | 6.37 | 5.76 | 6.53 | 5.85 | 4.67 |
How to Participate in buyback?
1. Firstly to be eligible for the buyback the investor should have shares of Granules India Limited Buyback 2020 in demat or physical form as on record date on [ 20.03.2020]
2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 08.06.2020 to 19.06.2020 ] by selling your shares through your broker on NSE or BSE.
3. Then on [ 30.06.2020 ], the settlement will be done for accepted shares and unaccepted shares will be returned to your demat account
Profit from the buyback on the bases of acceptance Ratio:
Buy 1000 Shares at CMP of Rs.138 ( 2,00,000/200=1000)
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,38,000 | 1,38,000 | 1,38,000 | 1,38,000 |
| No. of Shares buyback | 330 | 500 | 750 | 1000 |
| BuyBack Profit | 20,460 | 31,000 | 46,500 | 62,000 |
| Profit | 14.83% | 22.46% | 33.70% | 44.93% |
Recommendation:
Review and Recommendation of from our side is Granules India Limited Buyback 2020 : Rating: 3/10
Fair: 1-5
Good: 5-7
Excellent: 7-10
13 Comments
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https://twitter.com/darshanvmehta1/status/1272356002789158912?s=12
Is, it advisable to buy granules now around 180 for short term gains
latest circular
https://www.bseindia.com/xml-data/corpfiling/AttachLive/67fdc713-7457-4915-90e6-83c0cb4fe8ed.pdf
Granules buyback= 11 % entitlement.
June 8 to June 19 buyback dates. Also results tomorrow
Hi sir can you explain the entitlement ratio… What it means and how it is useful for investors….?
Why the companies are not accepting all the shares of investors in the buy back process..?
ER= Entitlement ratio
Let us suppose for Retail investors the total shares reserved are 10 cr in the buyback ( 15% is reserved as per SEBI mandate)
On Record date, the retail investors are holding total 20 cr shares.
So, ER would be = 10/20= 50%
That means 50% shares will be sureshot to be buyback in the company.
Thank you
iss mahine me buy back ka date open ho sakta hai ki nahi any one please tell me
Record date is announced.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/9f72aa16-f0ea-461f-bb66-093bcc60c848.pdf
1. The Buyback size is 1.25 Crores shares.
2. Retail Quota= 18.8 Lakhs Shares
3. Shares upto 2 lakh = 543 Lakhs
4. Entitlement= 3.46%
As per the Annual Report of 2018-19, the number of Shareholders between 0-5000 was around 3.69 Crores.
So, probably the number of shares between 1-1000, would be around 2 crores.
Entitlement= 9%.
The only advantage is the price gap between current market price and buyback price.
The board has approved a proposal to Buy-back up to 1,25,00,000 equity shares of the Company for an aggregate amount not exceeding Rs. 250 crores) (the “Buyback Size”), is 4.92% of the total paid-up equity share capital, at Rs.200/- per equity share.
Granules India Ltd board approves buy back at Rs. 200 through tender offer route. The Board of Directors of Granules India Ltd at their meeting held today has approved the buyback of equity shares of the company through tender offer route at Rs. 200 per share.
Buyback price 200 announced