Aarti Drugs Ltd. was established in the year 1984 and forms part of $900 Million Aarti Group of Industries with robust R&D Division at Tarapur, Maharashtra Industrial Development Corporation (MIDC) in close vicinity to manufacturing locations.
The Company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals and also produces Formulations with its wholly-owned subsidiary – Pinnacle Life Science Private Limited.
Products under APIs includes Ciprofloxacin Hydrochloride, Metronidazole, Metformin HCL, Ketoconazole, Ofloxacin etc. whereas Specialty Chemicals includes Benzene Sulphonyl Chloride, Methyl Nicotinate etc.
Over the years, the Company has been able to carve a niche for itself and is looking forward to expand the volumes. With the government initiative to encourage private health insurance schemes, consumer spending on medicines is expected to increase, which will spur growth in the generic sector in the domestic market.
The manufacturing-units of Aarti Drugs Ltd. are GMP certified. The Company is also in the process of acquiring an ISO 9002 compliance for all its units and one of the units has already been approved.
The Company aims at becoming the first choice of this expanding market through better products, ensuring quality and timely delivery.
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Aug 04 2023 |
| Buyback Opening Date: | Aug 09 2023 |
| Buyback Closing Date: | Aug 17 2023 |
| Buyback Offer Amount: | ₹ 59.85 Cr. |
| Date of Board Meeting approving the proposal: | Jul 21 2023 |
| Date of Public Announcement: | Jul 21 2023 |
| Buyback Offer Size: | 0.72% |
| Buyback Number of Shares: | 6,65,000 |
| Price Type: | Tender Offer |
| FV: | 10 |
| Buyback Price: | ₹ 900 Per Equity Share |
| Particulars (in cr) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales + | 1,454 | 1,635 | 1,915 | 2,251 | 2,498 |
| Expenses + | 1,252 | 1,387 | 1,511 | 1,930 | 2,216 |
| Operating Profit | 203 | 248 | 404 | 321 | 282 |
| OPM % | 14% | 15% | 21% | 14% | 11% |
| Other Income + | 6 | 9 | 7 | 5 | 2 |
| Interest | 41 | 36 | 26 | 23 | 33 |
| Depreciation | 40 | 47 | 48 | 47 | 47 |
| Profit before tax | 128 | 175 | 338 | 256 | 205 |
| Tax % | 32% | 22% | 24% | 24% | 25% |
| Net Profit + | 87 | 136 | 258 | 195 | 153 |
| EPS in Rs | 9.25 | 14.56 | 27.65 | 21.06 | 16.5 |
| Dividend Payout % | 3% | 3% | 9% | 5% | 6% |
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,13,220 | 1,13,220 | 1,13,220 | 1,13,220 |
| No. of Shares Buyback | 73 | 111 | 166 | 222 |
| Buyback Profit | 28,470 | 43,290 | 64,740 | 86,580 |
| Profit% | 25.00% | 38.20% | 57.00% | 76.47% |
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One share accepted.
Got contact note from Zerodha
Contract*
1 share accepted.
One of the pathetic Buyback of Aarti drug… only 3 share accepted out of 200..
Only 1.5% AR !
1 share accepted in all accounts
How many accounts you applied and it’s accepted in all
1 share accepted in all accounts or not?
No of orders placed : 55,134
I think single shares acceptance works here may be
Where did you get that data ..and are u sure about 1 share acceptance ..I don’t know as I am new
YES SINGLE SHARE ACCEPTANCE WILL BE 100% AND AR FOR RETAIL WILL BE CLOSE TO 3%
On bse website.
Live bidding data buyback.
55,134 Orders Placed. A lot of People are going to get burnt here in short term.
Can u plz tell From where u got this data
Where we can see this information
Retail ER : 1.27%. tender period
9th August to 17th August
This buyback was a perfect trap for newbies. I expect price to be below 550 after buyback closes. Operators have distributed shares to Retailers here.
It may not be as bad as you think, Gaurav ji. It may rise a few days after the buyback process is over like Ajantha Pharma recently did. Hope for the best and please have some patience in this script in particular.
Indiamart Buyback :there will not be much diff in ER nad AR due to one share game
Now, I am left with the balance of 119 shares of Aarti Drugs with the cost price of Rs. 401.05 after my yesterday’s selling of 120 shares at a good price. Risk rate is very low. Hopefully looking forward for a reasonable price for the unaccepted shares after the buyback. Thank you.
Sold all the 119 shares for a reasonably good profit. Thank you.
Great! I wrote this same strategy last night for you but then deleted it before posting as you are having a decent gain and the AR is going to be on a very low side.
Rohit ji,
Thank you very much for your kind response.
Why yu sold out?? As per me… The share price will Rise after buyback… Pls explain I too hav shares of AD
Welcome Prem ji, good point of view. Tomorrow is in nobody’s hands.Please be careful and be positive. I too have your view, though I am not participating in this buyback. Wish you happy returns and good luck.
Got rid of my holdings at the best ever gains in a short term deal in my life.
Awesome! Have you bought IndiaMart? I think it is a good time to buy today 3065 (if not) for buyback tendering. Hope to get double-digit returns.
Thank you Rohit ji.Indiamarts were sold on the day of the Board meeting at 2906 & 2919/ . Not yet decided to participate in buyback. Looking forward to L& T . Already bought 40 @ 2444/ on Friday.Will sell tomorrow if profitable and await for the outcome of the Board meeting. Good luck to all.
Nice, I missed buying LT. I placed an order in the pre-open session for 2520 and it opened at 2522 so my order does not get matched.
I think you meant 2544 as the share opens at 2522 and keeps above that level the whole day?
I could not get you sir as today’s L&T range was 2583 to 2634.
They were discussing about Friday, please.
Thanks for your reply. Yes, I mean Friday trading session.
Yet another silly typing error made by me. Sorry, 2543.5 to be exact .
Today below 3000 .hopes it will recover soon
Hope so. I am going to hold the shares for tendering in buyback. Will buy more in other family members accounts if it fall another 4-5 percent..
True, Promoter taking away cash from company, that’ is why promoters increased their shares recently & they will also be participating in this buyback.
It is misguiding for retail customers. I tendered 200 shares in 2021 buyback & got buyback for just 2 shares. They will show calculations with 33%, 50%, 75%, 100% acceptance ratio. These are all paid news, paid so called investment experts.
The acceptance ratio will be around 1%. so if u have 100 shares only 1 share will be purchased under buyback for Rs.900. All 100 shares will be blocked till aarti mgt. decides on buyback approval qty. All balance 99 shares will be released to ur dmat account after their process is over.
During this period (when ur all stocks r tendered for buyback) u cannot sell your stock even if it is in good profit.
Be cautious. Happy & safe investing.
Did you mean this portal shows calculations with 33%, 50%, etc..? It is based on assumption and no one can share the exact ER or AR till the record date or buyback closure date (not even the RTA). Also, please do not blame anyone. I will research about the increase in director shareholding and get back to you. Just being busy with the IT Returns.
What is the acceptance ratio per 222 shares
Probably 6 share would be accepted in buyback for your 222 shares tendered.
Will 1 Share strategy works here in AARTIDRUGS Buyback ?
Yes, 1 share strategy will work.
Promoters trying to encash money from company. Else would not be that high buyback price than CMP. Good for buyback janta may be bad for shareholders
No, I don’t think this is the intention of the promoters. If you check the history, the share is around the 600-800 level after 30 Mar 21 (closure of previous buyback) for a period of 3-4 months and then in a downtrend. As per my experience, good companies provide buyback at some premium on the highest share price if the share is in a downtrend. Also, they have posted a buyback for around 5% of the equity share capital and free reserve however they can do it up to 10% without special approval or even bigger size with special approval.
Sir please convey the final opinion whether to go with this buyback or not.
I do not suggest you to buy for the purpose of tendering as the size is quite small and I think AR will be very less.
You have been proved right, Rohit Ji.Well done once again.
Gopi mam, what do you think about 1-share strategy for aarti drugs buyback,
i am new that why i asking this types of queatition.
plz give me your advise regarding this.
I am a man for sure Mitul ji. As far as I know, one share is generally accepted. But it’s worth trying if there is substantial difference between your purchase price and buy back price. I used this strategy by holding on to one share in cases where I booked profit or loss and decided not to participate in the buyback fearing lesser AR. I don’t bother about ER which often had no or hardly any relationship with the AR. Good luck to you.
Not beneficial for single share holders.
I reckon
Arti drugs
BUYBACK 665000 shares @900
Record date 4 August 2023
Buyback size : 59.85cr
Up to 0.72% only of the paid up Equity Shares of the Company. AR will be very very less. Please be cautious.
Breaking News
LARSEN & TOUBRO (L&T) TO CONSIDER SHARE BUYBACK AND SPECIAL DIVIDEND ON JULY 25👍
Any Views on Route Mobile Open Offer??
I think it is a good time to buy now @Rs 520
India mart buyback board meeting on 20 Jul
Already in profit as my average is 511. Will exit without tendering once details get out for the buyback.
Moved out today with a decent profit of 12%.
Any view on Ashianahousing buyback?
You are most likely to suffer loss as the AR is not going to be much Gautam ji.
How much cud be the approximate size of.the Buyback?.seems.if size is not large atleast 200 Cr there is no point participating in buyback. See the very low AR in Amrutanjan. Last buyback size of.Arti.drugs in 2021 was paltry 60 Cr
Will wait for the outcome of the Board meeting to consider purchase.