Ajanta Pharma Limited Buyback 2024

1. Global Presence: Ajanta Pharma is a prominent specialty pharmaceutical company, distributing quality medicines to over 30 countries worldwide. The company is recognized for its leadership in numerous molecules and therapeutic segments, often being the first to market new products.

2. Advanced Manufacturing Facilities: The company operates seven state-of-the-art manufacturing facilities in India, including six that produce finished formulations and one dedicated to manufacturing Active Pharmaceutical Ingredients (APIs), mainly for internal use.

3. Regulatory Approvals: Ajanta Pharma’s manufacturing facilities, particularly in Paithan, Maharashtra, and Dahej, Gujarat, have received approvals from stringent regulatory authorities like the US FDA and the World Health Organization (WHO), underscoring the company’s commitment to quality.

4. Trusted by Professionals: The company’s high-quality medicines are trusted by healthcare professionals and patients alike in more than 30 countries, reflecting its strong reputation in the global market.

5. Robust Supply Chain: Ajanta Pharma ensures consistent availability of its medicines through a robust supply chain, crucial for daily healthcare needs across its markets.

6. Diversified Business Model: The company’s business model includes Branded Generics in India and Emerging Markets in Asia and Africa; Generics in the USA; and Institution Sales in Africa. This diversification helps in making the business model scalable and sustainable.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: May 30 2024
Buyback Opening Date: Jun 05 2024
Buyback Closing Date: Jun 11 2024
Buyback Offer Amount: ₹ 285 Cr.
Date of Board Meeting approving the proposal: May 02 2024
Date of Public Announcement: May 02 2024
Buyback Offer Size: 0.82%
Buyback Number of Shares: 10,28,881
FV: 2
Buyback Price: ₹ 2770 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 10,28,881 (Ten Lakhs Twenty-Eight Thousand Eight Hundred Eighty-One) equity shares of the Company (representing 0.82% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 2,770/- (Rupees Two Thousand, Seven Hundred and Seventy Rupees) per equity share payable in cash for an aggregate consideration not exceeding Rs. 285 crores (Rupees Two Hundred and Eighty Five Crores only)

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 2,055 2,588 2,890 3,341 3,743
Expenses + 1,489 1,904 1,889 2,408 2,934
Operating Profit 567 683 1,001 933 808
OPM % 28% 26% 35% 28% 22%
Other Income + 21 88 24 112 74
Interest 1 12 8 10 6
Depreciation 72 96 116 125 131
Profit before tax 514 664 900 909 745
Tax % 25% 30% 27% 22% 21%
Net Profit + 387 468 654 713 588
EPS in Rs 29.56 35.73 50.38 55.63 45.89
Dividend Payout % 20% 24% 13% 11% 15%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Ajanta Pharma Limited in Demat or physical form as on the record date [30-05-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [05-06-2024] by selling your shares through your broker on NSE or BSE. 3. Then on [28-06-2024], 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 72 Shares at CPM of Rs. 2225 (2,00,000/2770)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 160200 160200 160200 160200
No. of Shares Buyback 24 36 54 72
Buyback Profit 13080 19620 29430 39240
Profit% 8.16% 12.25% 18.37% 24.49%

31 Comments

    1 Share stretegy will Work???? it seems that around 80000 shareholder have 1 share. As per March shareholding no of retail shareholder was around 51000 and as per LOF retail shareholder is 132857. if 1 share stretegy then AR will be around to ER i.e. 13-14%.

    Reply

    Received email. ER: 1/8. I hold 20 so 2. Dates: 5.06/11.06/19.06. I expect the AR to be 25-30%.

    Reply

    Is today i.e. 29th May . the ex date for Buyback. Please clarify

    Reply

    I have Rs. 2 Lakhs. I have purchased 10 shares at Rs 2390/ for buy back only. Also purchaesd 10 shares of eClerx at Rs 2300/ for buy back only. Please advise as to which & how much should I purchase to maximise benefit.

    Reply

    how do we calculate AR/ER, do we have to know the retail quota first? How does it work, would appreciate if one could explain in detail or give sources

    Reply

    1. Last time buyback was for 2210526 no of shares but this time it is for 10,28,881 no of shares.
    2. Time buyback price is more attractive (24.5 ℅ compared to last year 18.75℅).
    3. Shareholding pattern is more or less same.
    4. Last time AR was 45℅.
    Keeping all these things mind I think this year AR will be 15-18 ℅.

    Reply

      Nicely analysed. Agree with you. A R may be less than 15 percent in my view unless Q4 result is very good to push the price higher.

      Reply

    What could be the ER and AR for the buyback and is it advisable to participate in it?

    Reply

      1. Last time buyback was for 2210526 no of shares but this time it is for 10,28,881 no of shares.
      2. Time buyback price is more attractive (24.5 ℅ compared to last year 18.75℅).
      3. Shareholding pattern is more or less same.
      4. Last time AR was 45℅.
      Keeping all these things mind I think this year AR will be 15-18 ℅.

      Reply

    AJANTA PHARMA Tender Buyback Approved

    Buyback Price : 2,770 ₹
    Today’s Closing Price : 2,234 ₹

    Buyback Size ₹ : 285 Crore
    Buyback Size in Shares : 10,28,881 Shares

    Retail Quota : 1,54,333 Shares
    Record Date for Buyback : 30 May, 2024

    Reply

    Buyback Price :- 2770 per share
    Buyback Size :- 10,28,881
    Record Date :- 30th May, 2024

    Reply

    Participating with full retail quota.Bought some today. Ajantapharma has been doing buyback quite regularly and I have participated . Never been disappointed.

    Reply

      This time the buyback size is very small and margin is high. May not participate since the A R is likely to be low. Sold my holding yesterday itself at the opening price of 4540/ and made handsome gains.

      Reply

        so is there any point in participating in buyback at all ? what abt bajaj consumer n sharda motor buyback ?

        Reply

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