Ajanta Pharma Buyback 2023

(i) Ajanta Pharma is a specialty pharmaceutical company engaged in the development, manufacturing, and marketing of quality finished dosages. Committed to ‘Serve Health Care Needs Worldwide’, they produce a comprehensive range of specialty products targeting different therapeutic segments for the treatment of patients, customized to each market.

(ii) Their business includes Branded Generics in emerging markets of Asia and Africa, Generics in the developed markets of USA and Institution sales.

(iii) The branded generics business is spread in India and more than 30 emerging countries across Africa, CIS, the Middle East and South East Asia. In India, they have a presence in high growth specialty segments of cardiology, dermatology, ophthalmology and pain management where they have been able to provide consistently innovative products, many being 1st to the market, for patient convenience and compliance.

 

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 24 2023
Buyback Opening Date: Mar 31 2023
Buyback Closing Date: Apr 10 2023
Buyback Offer Amount: ₹ 315 Cr
Date of Board Meeting approving the proposal: Mar 10 2023
Date of Public Announcement: Mar 10 2023
Buyback Offer Size: 2.7%
Buyback Number of Shares: 2210526
Price Type: Tender offer
FV: 2
Buyback Price: ₹ 1425 Per Equity Share
Letter for Offer Link

Details of Buyback:

Ajanta Pharma Board of Directors of the Company, at its meeting held on March 10, 2023, has inter-alia considered and approved Buyback of 22,10,500 fully paid-up Equity Shares of face value of ₹ 2/- each by the Company (representing 2.59% of the total number of Equity Shares of the Company as of March 31, 2022 (not adjusted for bonus issue undertaken by Company as on June 24, 2022 ) at a price of ₹ 1,425/-  per Equity Share payable in cash for a total consideration not exceeding ₹ 315 crores(excluding transaction costs such as fees, brokerage, taxes, duties, etc.), which represents 9.93% and 9.64% of the aggregate of the Company’s paid-up capital and free reserves as per the standalone and consolidated audited financials of the Company for the year ended as on March 31, 2022 respectively.

Salient financial parameters:

 
Particulars(in Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales 2,055 2,588 2,890 3,341
Expenses 1,489 1,904 1,889 2,408
Operating Profit 567 683 1,001 933
OPM % 28% 26% 35% 28%
Other Income 21 88 24 112
Interest 1 12 8 10
Depreciation 72 96 116 125
Profit before tax 514 664 900 909
Tax % 25% 30% 27% 22%
Net Profit 387 468 654 713
EPS in Rs 29.56 35.73 50.38 55.63
   

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Ajanta Pharma Buyback 2023 in demat or physical form as on record date [24.03.2023]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [31-03-2023] by selling your shares through your broker on NSE or BSE. 3. Then on [18-04-2023] 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 140 Shares at CMP of Rs. 1200 (2,00,000/1425=140)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 168421 168421 168421 168421
No. of Shares buyback 46 70 105 140
BuyBack Profit 10810 16450 24675 32900
Profit 6.41% 9.76% 14.65% 19.55%

Recommendation:

Good Arbitrage of Rs.235 per share is available from the CMP. Last time AR was 54%.

22 Comments

    Many have been asking for checking subscription and expected AR..
    Here is example, till 16:00 today the individual subscription is 1224246. Now all individual may not be small share holder, but small share holder would be less than individual.
    Now shares available for small share holder are 3,31,575. So calculated AR would be 27.08. But considering earlier experience that large individual holders also apply as individuals, it is expected AR to be around 1.6 X 27.08 i,e, 43%.
    The last calculation is guestimate only, but roughly AR would be between 35-55^

    Reply

    Buyback Opening Date : 31 March
    Buyback Closing Date : 10th April

    Payment for Accepted Shares in Buyback : 18 April

    Retail Entitlement Ratio : 20 Shares against 99 Shares

    Reply

        Total Share Reserve for Retail Category is 3,31,575 (22,10,500*15%)
        Total retails share holder as on ex date is 16,41,071

        ER = 3,31,575/16,41,071=20.20%

        Reply

    Last year’s ER is 19.86% so I assume more or less the same ER.

    Reply

      Sir konsa price mana gya hai
      24 March ka ya 23 March ka
      Please btana
      I have hgs shares
      At 1309
      Price agar 3 March ki closing liya jaye to mere shares ki value 2 lakh above hai
      But agar 6 March open ya close mana Jaye to under 2 lakh

      Reply

Leave a Reply