Aksharchem India Ltd Buyback 2021

The Journey of More than 25 Years were full of Strengthening our mind and Character, Times changed, Technology changed and People changed but one thing was always common in AksharChem was Determination and Resilience.

Therefore after 27 Years
• They are one of the fastest growing vinyl sulphone manufracturers in india.

• Today They are India’s Leading exporters of vinyl sulphone.

• Today They are one of the most trusted and reputed vinyl sulphone suppliers to the world’s leading chemical companies.

• Today, we are one of the most environment friendly chemical companies across the globe.

At Aksharchem, they chose to be environment friendly chemicals company. They have facility for Zero Liquid Discharge. Which they practice to provide best quality products to the world with keeping in mind of environment and therefore today we are doing turn over of Rs. 187.7 Cr. Compare to Rs. 2.68 Cr. In 1993-94.

AksharChem was promoted by Mrs. Paru M. Jaykrishna in 1989. It is headquartered in the chemical belt of Mehsana (Gujarat). It is engaged in the business of dyes and pigments manufacturing. The Company’s shares are listed in the BSE Limited (BSE), National Stock Exchange of India Limited (NSE) and Ahmedabad Stock Exchange Limited (ASE).
During this journey we have always focused on
• Strengthening product quality.
• Widening product portfolio.
• Spreading to new regions.
• Delighting customers.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 12 2021
Buyback Offer Amount: ₹ 9.9 Crores
Date of Board Meeting approving the proposal: Oct 29 2021
Date of Public Announcement: Oct 29 2021
Buyback Offer Size: 2.07%
Buyback Number of Shares: 1,69,491
Price Type: Tender offer
FV: 10
Buyback Price: ₹ 590 Per Equity Share

Details of Buyback:

Approved the Buy-back of up to 1,69,491 fully paid-up Equity Shares of face value of "' 10/- each by the Company (representing 2.07% of the total number of Equity Shares of the Company) at a price of"' 590/- (Rupees Five Hundred Ninety Only) per Equity Share payable in cash for a total consideration not exceeding "'9,99,99,690/- (Rupees Nine Crores Ninety Nine Lakhs Ninety Nine Thousand Six Hundred and Ninety only) ( excluding transaction costs such as fees, brokerage, taxes, duties, etc.), which is not exceeding 10% of the total paid-up equity share capital and free reserves (including securities premium account) as per the audited financial statements of the Company for the financial year ended on March 31, 2021, through the "Tender Offer" route as prescribed under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 as amended, on a proportionate basis, from the Equity Shareholders/beneficial owners of the Equity Shares of the Company including promoters, members of promoter group and persons acting in concert, as on the record date.

Salient financial parameters:

Particulars(in Cr) Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales 188 248 264 323 260 246
Expenses 155 171 223 288 234 223
Operating Profit 32 78 42 34 26 24
OPM % 17% 31% 16% 11% 10% 10%
Other Income 1 9 7 5 1 1
Interest 3 3 1 1 1 1
Depreciation 4 5 5 6 7 7
Profit before tax 26 79 43 33 19 17
Tax % 36% 33% 28% 32% 18% 28%
Net Profit 17 53 31 23 16 12
EPS in Rs 22.75 72.37 37.26 27.54 19.16 15.24

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Aksharchem Ltd Buyback Offer 2021 in demat or physical form as on record date [12.11.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from by selling your shares through your broker on NSE or BSE. [Not Announced] 3. Then on [Not Announced], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.[Not Announced]

Profit from the buyback on the bases of acceptance Ratio:

Buy 338 shares at CMP of Rs.505 [2,00,000/ 590= 338]
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 170690 170690 170690 170690
No. of Shares buyback 112 169 254 338
BuyBack Profit 10,262 15,548 23,322 31,096
Profit% 6% 9% 14% 18%

Recommendation:

Review and Recommendation of Aksharchem India Buyback 2021 by IZ team is: 4/10 A very small buyback of just 10 Crores. So, do not accept more from this buyback.

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