Anand Rathi Wealth Limited Buyback 2024

  • Foundation: Anand Rathi Group was established in 1994 by Mr. Anand Rathi and Mr. Pradeep Kumar Gupta.
  • Response to Economic Change: The company was set up following India’s economic liberalization, aiming to convert the era’s financial optimism into tangible results.
  • Client-Centric Growth: Since its inception, the group has consistently prioritized client needs, expanding services from setting up a research desk in 1995 to entering the capital market lending space in 2019.
  • Service Spectrum: The group’s services include stock broking, wealth management, investment banking, commodities broking, construction finance, and capital market lending.
  • Ethical and Entrepreneurial: Anand Rathi Group’s longevity and success are attributed to its focus on ethics, entrepreneurial drive, and innovative spirit.
  • Customer Base: Boasts a dedicated client base of over 4 lakh individuals and institutions.
  • Trust and Legacy: Continual customer trust and support are considered the group’s most valuable assets, shaping its legacy in the financial sector.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 164.65
Date of Board Meeting approving the proposal: Apr 12 2024
Date of Public Announcement: Apr 12 2024
Buyback Offer Size: 0.88%
Buyback Number of Shares: 3,70,000
FV: 5
Buyback Price: ₹ 4450 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 3,70,000 (Three Lakhs Seventy Thousand) equity shares of the Company (representing 0.88% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 4450 (Rupees Four Thousand Four Hundred and Fifty only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 164,65,00,000 crores/- (Rupees One Hundred Sixty Four Crores and Sixty Five Lakhs Only)

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 275 327 260 408 538
Expenses + 180 213 185 230 296
Operating Profit 95 114 75 178 242
OPM % 35% 35% 29% 44% 45%
Other Income + 6 1 2 1 0
Interest 3 3 3 2 4
Depreciation 4 16 12 11 12
Profit before tax 94 96 62 166 226
Tax % 30% 26% 29% 24% 26%
Net Profit + 65 71 44 125 168
EPS in Rs 24.22 26.37 16.07 30.14 40.34
Dividend Payout % 0% 0% 31% 36% 30%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Anand Rathi Wealth Limited in Demat or physical form as on the record date [To be updated]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE. 3. Then on [To be updated], 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 45 Shares at CPM of Rs. 4050 (2,00,000/4450)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 182250 182250 182250 182250
No. of Shares Buyback 15 22 34 45
Buyback Profit 6000 8800 13600 18000
Profit% 3.29% 4.83% 7.46% 9.88%

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