Atul Buyback 2021

Atul is an improvement driven, integrated chemical company serving about 4,000 customers belonging to 30 industries across the world. The Company has established subsidiary companies in the USA (1994), the UK (1996), China (2004), Brazil (2012) and the UAE (2015) to serve its customers and thus enhance breadth and depth of its business.

With depth in science and technology, Atul manages almost all unit processes and unit operations to manufacture about 1,350 products and formulations and has state-of-the-art facilities and processes to ensure safety and treatment of gaseous, liquid and solid pollutants. The Company is ISO 14001 certified.

Atul is in the business of Life Science Chemicals and Performance and Other Chemicals and caters to the needs of varied industries across the world such as Adhesives, Agriculture, Animal Feed, Automobile, Composites, Construction, Cosmetic, Defence, Dyestuff, Electrical and Electronics, Flavour, Food, Footwear, Fragrance, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings, Paper, Personal Care, Pharmaceutical, Plastic, Polymer, Rubber, Soap and Detergent, Sport and Leisure, Textile, Tyre and Wind Energy.

Buy Back Offer Deal:

Buyback Type: Open Offer
Buyback Offer Amount: ₹ 50 Cr
Date of Board Meeting approving the proposal: Jan 29 2021
Date of Public Announcement: Jan 29 2021
Buyback Offer Size: 1.84%
Price Type: Open Offer
FV: 10
Buyback Price: ₹ 7250 Per Equity Share

Details of Buyback:

The Buy-back of the Company's fully paid up equity shares having a face value of Rs. 10 (Rupee Ten Only) each (the "Equity Shares"), from the members of the Company (except promoters, promoter group and persons in control of the Company) at a price not exceeding Rs. 7250/- (Rupees Ninety Only) per Equity Share ("Maximum Buyback Price"), and for an aggregate amount not exceeding Rs. 50 crores ("Maximum Buyback Size"), which is less than 10% of the paid-up capital and free reserves of the Company as on March 31, 2020, from the open market through Stock Exchange mechanism.

Salient financial parameters:

Particulars(Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 2,637 2,595 2,834 3,514 4,038 4,093
Expenses 2,236 2,135 2,324 3,009 3,271 3,191
Operating Profit 401 460 509 505 767 902
OPM % 15% 18% 18% 14% 19% 22%
Other Income 10 39 57 30 40 83
Interest 26 28 25 13 7 9
Depreciation 60 66 95 110 119 130
Profit before tax 326 404 446 412 680 845
Tax % 31% 32% 28% 32% 36% 21%
Net Profit 241 274 323 276 432 666
EPS in Rs 81.13 92.44 108.88 93.21 145.72 224.69
Dividend Payout % 10% 9% 9% 13% 10% 12%
Source: Screener.in

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Atul Limited Buyback 2021” announces the buyback plan of its shares up to the price of Rs 7250, it means that the company will be purchasing shares of "Atul Limited" from the open market at a price not exceeding Rs.7250 per share. Scenario 1- If the share price is below Rs.7250 in that case, the company will put buy orders at the current market price and purchase shares. Scenario 2- If the share price is above Rs. 7250, in that case, the company will put buy order at Rs. 7250 only and if someone is ready to sell at Rs.7250 then the only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA

Recommendation:

NA

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