Alembic Limited Buyback Offer Jan 2018

Alembic Ltd (BSE: 506235 | NSE: ALEMBIC LTD) is engaged in manufacturing and marketing of fermentation and chemistry based Active Pharmaceuticals Ingredients (API), Research and Development activity related to Pharmaceuticals, Construction of residential & commercial real estate, Power generation(Co-generation and wind power).The Company started its first manufacturing unit in 1907 as Tinctures and Alcohol at Vadodara.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 23 2018
Buyback Opening Date: Apr 16 2018
Buyback Closing Date: Apr 27 2018
Buyback Offer Amount: ₹ 82
Date of Board Meeting approving the proposal: Jan 23 2018
Date of Public Announcement: Jan 24 2018
Buyback Offer Size: 3.84%
Buyback Number of Shares: 1.025 Cr
FV: 2
Buyback Price: ₹ 80 Per Equity Share

Details of Buyback:

The Company meeting held on Monday, 12th March 2018 had unanimously approved and finalized the proposal for buy-back of up to 1,02,50,000 (One Crore Two Lac Fifty Thousand) Equity Shares of the Company at a price of 80/- (Rupees Eighty Only) per Equity Share payable in cash for a total consideration not exceeding 82,00,00,000/- (Rupees Eighty Two Crore Only) excluding Transaction Costs and have fixed Friday, 23rd March, 2018 as record date for the purpose of determining the equity shareholder(s) of the Company eligible to tender Equity Share(s) in Buy-back Offer.

Salient financial parameters:

Parameters                           Standalone
Pre-Buyback Post- Buyback
(i) Net worth (in Crore) 34,266.63 26,066.63
(ii) Return on Net worth (%) 10.83% 14.24%
(iii)Earnings Per Share 1.39 1.45
(iv) Book Value per Share 12.83 10.15
(v) P/E 38.50 37.12
(vi) Total Debt/ Equity Ratio -- --

Source of funds for the Buyback:

1. Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buy-back would be 82,00,00,000/- (Rupees Eighty-Two Crore Only) excluding Transaction Costs. 2. The Buy-back will be financed out of the Company’s free reserves and/or current surplus and/or cash and cash equivalents and/or internal

Shareholding Pattern Pre and Post buyback:

  Particulars Pre Buyback Post Buyback
 Equity Shares % Equity Shares %
(i) Promoters and Members of Promoter Group 17,01,22,163 63.71 16,38,04,282 63.79
(iii) Foreign Investors (including NRIs, FIIs and Foreign MFs) 46,18,476 1.73 9,29,77,546 36.21
(iii) ) Financial Institutions / Banks & Mutual Funds  1,19,61,112 4.48
(iv) Others  8,03,30,077 30.08
 Total 26,70,31,828 100.00 25,67,81,828 100

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Alembic Limited in demat or physical form as on record date 23 March 2018. 2. Once you have shares in demat, you can participate in the buyback process which is opening from 16 April 2018 to 27 April 2018 by selling your shares through your broker on NSE or BSE. 3. Then on 17 May 2018 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:

Alembic Ltd Buyback offers calculation for an investment of Rs 2,00,000 @ 65 per share
% Share Accepted No of Shared Accepted Gain from Buyback Offer
33% 1015 Rs 15225
50% 1538 Rs 23070
75% 2308 Rs 34620
100% 3077 Rs 46155
(a) Categories in Buyback: (i) Reserved category-For Small Shareholders who hold Shares worth up to Rs. 2 Lacs before the Record date. (ii) General category - For all Shareholders other than Small Shareholders. (b) A ratio of Buyback:
Category Entitlement Ratio of Buyback Per Equity Shares Ratio of Buyback in %
Reserved Category 138 Equity Shares out of every 2,911 fully paid-up Equity Shares 4.7%
General Category 396 Equity Shares out of every 10,663 fully paid-up Equity Shares 3.71%
 

Recommendation:

Rating: 3/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Registrar Contact Details:

Link Intime India Private Limited B-102&103 Shangrila, Complex First Floor, Akota, Vadodara - 390 020

Company Contact Details:

Alembic Limited Alembic Road, Gujarat-390003 Email: alembic.investors@alembic.co.in Website: www.alembiclimited.com