Aarti Drugs Limited Buyback 2024
About: Established in the year 1984 and a part of $1000 million Aarti Group of Industries, Aarti Drugs Ltd. (ADL) is engaged into manufacturing and selling Active Pharmaceutical Ingredients (API’s), Pharma Intermediates, Specialty Chemicals as well as Formulations. It is exporting its API’s and Speciality chemicals to over 100 countries across the globe.
Largest producer in World: Aarti Drugs Ltd. (ADL) is the largest producer of Fluoroquinolones group, Tinidazole, Metronidazole Benzoate, Celecoxib, Nimesulide, and Ketoconazole in the world. It is one of the leading producers of Metformin in the world.
Business Segments
a. API: ADL is a leading API producer of 50+ molecules and one of the largest manufacturers of 3 molecules in the world with 9 manufacturing units and an installed capacity of 40,560 MTPA contributing 85% to the revenues.
b. Formulations: ADL diversified into Formulations through its wholly owned subsidiary Pinnacle Life Science Pvt Ltd. It has a manufacturing plant at Baddi, Himachal Pradesh, which is WHO – GMP approved. The installed capacity stands at 3 billion units tablets and 300 million units capsules.
c. Speciality Chemicals: ADL’s speciality chemical segment is into manufacturing of Benzene & Chloro -sulphonic chemistry. It has 2 manufacturing units with 2 more facilities coming up under greenfield capex.
Revenue Mix: About 80% revenue comes from APIs, 13% from Formulations, 5% from Specialty Chemical and remaining from Intermediate and others. In terms of Therapeutic segment, Antibiotic accounts for the largest chunk of 47% followed by Anti-protozol (17%), Anti-inflammatory (11%), Anti-diabetic (16%), Anti-fungal (8%) and Others (3%).
Global presence: ADL has a global presence in 100+ countries across the globe in the continents of Europe, Australia, Africa, Asia, Latin & North America. The top 10 exporting countries include Brazil, Mexico, Pakistan, Turkey, Indonesia, UAE, Egypt, France, Switzerland, and Germany.
Manufacturing Capabilities: ADL has 12 state-of-the-art manufacturing units across Maharashtra, Gujarat and Himachal Pradesh. These units function with the installed capacity of 51,126 MT as of FY23 increased 5% from 47,701 MT in FY21 and are GMP certified. Capacity utilization was improved from 73% to 77% between FY21 to FY23.
Reputed Clientele
ADL’s reputed clientele includes MNC’s like Sun Pharma, Cipla, Abbott, ALKEM, Alembic, Torrent Pharma, Pfizer, Lupin, etc.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Sep 05 2024 |
| Buyback Opening Date: | Sep 11 2024 |
| Buyback Closing Date: | Sep 18 2024 |
| Buyback Offer Amount: | ₹ 59.85 Cr. |
| Date of Board Meeting approving the proposal: | Aug 26 2024 |
| Date of Public Announcement: | Aug 26 2024 |
| Buyback Offer Size: | 0.72% |
| Buyback Number of Shares: | 6,65,000 |
| FV: | 10 |
| Buyback Price: | ₹ 900 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In Cr) | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales + | 1,806 | 2,155 | 2,489 | 2,716 | 2,529 |
| Expenses + | 1,541 | 1,714 | 2,156 | 2,407 | 2,212 |
| Operating Profit | 266 | 440 | 333 | 309 | 316 |
| OPM % | 15% | 20% | 13% | 11% | 13% |
| Other Income + | 6 | 5 | 11 | 2 | 4 |
| Interest | 37 | 26 | 24 | 37 | 34 |
| Depreciation | 49 | 50 | 50 | 50 | 51 |
| Profit before tax | 185 | 369 | 270 | 224 | 236 |
| Tax % | 24% | 24% | 24% | 26% | 27% |
| Net Profit + | 141 | 280 | 205 | 166 | 172 |
| EPS in Rs | 15.17 | 30.09 | 22.14 | 17.96 | 18.65 |
| Dividend Payout % | 3% | 8% | 5% | 6% | 5% |
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 | 138084 | 138084 | 138084 | 138084 |
| No. of Shares Buyback | 73 | 111 | 166 | 222 |
| Buyback Profit | 20294 | 30858 | 46148 | 61716 |
| Profit% | 14.70% | 22.35% | 33.42% | 44.69% |
35 Comments
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As expected 1 share trick worked. 2/2 accepted.
Best buyback of the life.100% of ER shares accepted. Thanks to all who have given their valuable knowledge in all buyback so far. Now we should say good bye to each other.
How many you tendered ? Can you explain in detail
Dear Gaurav
100 % of ER shares accepted means not even a single extra share accepted.
ER for 170 sharss was only 02 and only 2 accepted.
Oh ok thanks. I got bit confused.
1 share not accepted in Aarti Drugs
For me it worked in both accounts.
Cera 1/13 Ar
Loss of Rs 1500 per account…
Skipping Aarti
To be totally avoided. Last time participants have turned their fingers. AR was around 2%
I think buyback size was the same last time and ER and AR were around 1.25% -1.5%. This time with lots of people involved in buybacks because of the upcoming changes, it might be even lower. Not sure if even 1 share strategy will work.
Yes, you are right. Don’t see any chance.Skipping this also.
Aarti Drugs
0.75% equity (6,65,000 shares) buy back @ Rs 900
CMP: 560
Record Date: 5-9-24
0.72 % instead of 0.75 %
Almost 2 lakh Small share holder .
Very tiny BB .
What is acceptance ratio?
Acceptance ratio = no of shares to be accepted by company/ no of shares held as on record date
Acceptance ratio = no of shares accepted/ no of shares tendered
Which one is true?
JAI CORP LTD to consider buyback on 29th August, 2024 !
If Promoters are not participating in buyback then, which category gets extra shares, which promoters do not tender ?
Retail or General category?
Both Category benifits in Entitlement Ratio. Sometimes both come Equal Ratio where promoters not Participating.
AR depends on biddings. Which category shareholders apply or not.
Most of times AR better in Retail Category.
That is not correct. Usually all promoters are in the General category and not in Retail. Hence, only the General category will benefit from promoters not rendering shares. The exception is when Retail shareholding is equal to or more than 15%. In that case, ER will be the same for Retail and General and both will benefit from promoters not participating.
In that case promoters not participating.
Entitlement counts on remaining shares other thn promoter holding.
Its allready out from ER counts so no effects of tendering or not rendering shares of promoter holding.
Just same observed in piramal enterprise buyback. ER comes around 9.5% general and retail 16%. ( Where buyback offer size 5.87% Equity shares ).
If promoters are all in General category and are not participating, then ER of Retail is not impacted unless Retail shareholding excluding promoters is greater than or equal to 15%
Example : A company has 1L shares, out of which promoters have 50K ( all in General) and it decides to buyback 5K shares
Scenario 1A: Retail shareholding is 5K ( 5% of total and 10% of total excluding promoters). Promoters are participating. Then shares reserved for Retail are Maximum ( 5%*5K = 250 Shares, 15%*5K = 750 shares) = 750 shares. ER for retail is 750/5K = 15%
Scenario 1B: Retail shareholding is 5K ( 5% of total and 10% of total excluding promoters). Promoters are NOT participating. Then shares reserved for Retail are Maximum ( 10%*5K = 250 Shares, 15%*5K = 750 shares) = 750 shares. ER for retail is 750/5K = 15%
Scenario 2A: Retail shareholding is 10K ( 10% of total and 20% of total excluding promoters). Promoters are participating. Then shares reserved for Retail are Maximum ( 10%*5K = 500 Shares, 15%*5K = 750 shares) = 750 shares. ER for retail is 750/5K = 15%
Scenario 2B: Retail shareholding is 10K ( 10% of total and 20% of total excluding promoters). Promoters are NOT participating. Then shares reserved for Retail are Maximum ( 20%*5K = 1K Shares, 15%*5K = 750 shares) = 1K shares. ER for retail is 1K/5K = 20%
Thus, only in Scenario 2, where Retail shareholding excluding promoters was more than 15%, did promoters not participating have an impact on ER for Retail. In practice, in most cases, Retail ex promoters is less than 15% and in most cases, promoters not participating does not benefit Retail category.
Correction: The Scenario 2A and 2B ERs are 7.5% and 10%.
Scenario 2A: Retail shareholding is 10K ( 10% of total and 20% of total excluding promoters). Promoters are participating. Then shares reserved for Retail are Maximum ( 10%*5K = 500 Shares, 15%*5K = 750 shares) = 750 shares. ER for retail is 750/10K = 7.5%
Scenario 2B: Retail shareholding is 10K ( 10% of total and 20% of total excluding promoters). Promoters are NOT participating. Then shares reserved for Retail are Maximum ( 20%*5K = 1K Shares, 15%*5K = 750 shares) = 1K shares. ER for retail is 1K/10K = 10%
Trinity ji I appreciate your painstaking efforts in explaining your point of view and knowledge. Wish you success in life in every field now and in future ❤️🩹
Very good explanation. Keep it up.
Wish you all success in your endeavors.
Hanji. Definitely you are 100% right. Where Promoter not participating benifits to general category In matter of ER.
I want to say most of times AR better in Retail category thn General category.
Diis fiis mostly apply full bids in buybacks.
When i heard this like promoter not participating where benifits to general category.
So i bought Birla soft 5000 qty For buyback.
ER for both come 4.50%
AR General – 8.61%
AR Retail – 19.50%
VLS finance Buyback
Where promoters not participating.
I expecting ER 18-19%
Why only 18-19? My expectation is next to 100% A R.I hold 530 nos of this small beauty for buyback.
Cant predict AR now.
ER 18-19%
Thanks to Trinity Ji for resolving my query by detailed explanation.
Thanks to Mohsin ji also for participation
TCI ka Expected buyback price kya hoga kisiko idea hai kya??
Cera me single share jayega
Nucleus Software Exports Ltd
Board Meeting – 22-08-2024
Route – Tender offer
Record date – 03-09-2024
Buyback Size – INR 72.35 Cr
Buyback Price – INR 1615
CMP- INR 1455
Proposed buyback Share – 4,48,018
Premium form CMP : 11%
Mkt Cap : 3895 Cr
Promoter Participation : No
One share buyback strategy can work
Apko kaise pata buyback toh abhi announce nhi hua hai na 🙄
Confirm? Promoter not participating?