Bharat Rasayan Buyback 2021

Bharat Group is the brainchild of a visionary Sat Narain Gupta, one of the pioneers of agrochemicals industry in India. Active in this arena since 1977, he initially floated Bharat Pesticides Manufacturing Company. In this venture, he found two like-minded partners in, Mahabir Prasad Gupta and Rajender Prasad Gupta. Today, their joint efforts have borne rich fruits as Bharat Group has created a niche in diverse segments of pest control within the country and abroad too.

Currently, BRL is the flagship enterprise of the conglomerate alongside the two sister concerns, Bharat Insecticides Limited (BIL) and BR Agrotech Limited (BRAL). The products portfolio consists of a wide spectrum of high quality eco-friendly pesticides, fungicides, herbicides, acaricides etc. to cater to every arena in the agricultural sector of crops (food and commercial), horticulture and floriculture, in applications for public health, house-keeping and veterinary treatment besides loss prevention in warehouses, depots and granaries. Apart from these, the group has also forayed into the packaging industry on an encouraging note.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 05 2021
Buyback Opening Date: Mar 26 2021
Buyback Closing Date: Apr 12 2021
Buyback Offer Amount: ₹ 108 Cr
Date of Board Meeting approving the proposal: Jan 12 2021
Date of Public Announcement: Jan 12 2021
Buyback Offer Size: 2.20%
Buyback Number of Shares: 93472
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 11500 Per Equity Share

Details of Buyback:

The company approved a proposal for buyback of up to 93,472 fully paid-up Equity Shares of the Company of face value Rs. 10 each, being 2.20% of the total issued and paid-up equity share capital of the Company as per the audited consolidated and standalone condensed interim financial statements ("Audited Condensed Interim Financial Statements") as on 31.03.2020, for an aggregate amount not exceeding Rs. 107 Cr, which is not exceeding 25% of the aggregate of the total issued and paid-up equity share capital and free reserves as per the Audited Condensed Interim Financial Statements of the Company as at and for the period as on 31.03.2020 at Rs. 11500 per share via " Tender Route".

Salient financial parameters:

Particulars (cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 438 451 618 792 989 1,213
Expenses 355 370 508 639 802 983
Operating Profit 82 81 111 153 188 230
OPM % 19% 18% 18% 19% 19% 19%
Other Income 1 1 2 10 1 14
Interest 18 13 12 12 16 16
Depreciation 18 17 16 16 17 22
Profit before tax 48 52 84 135 155 205
Tax % 34% 34% 35% 27% 28% 23%
Net Profit 32 34 55 98 112 158
EPS in Rs 74.73 79.74 128.35 231.39 262.48 371.03

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Bharat Rasayan Buyback 2021 in demat or physical form as on the record date [05.03.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [26.03.2021 to 12.04.2021]  by selling your shares through your broker on NSE or BSE. 3. Then on [22.04.2021] , 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 17 Shares at CMP of Rs. 10335 [2,00,000/11500=17)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,75,695 1,75,695 1,75,695 1,75,695
No. of Shares buyback 5 8 12 17
BuyBack Profit 5825 9320 13980 19805
Profit 3.31% 5.3% 8% 11.27%

Recommendation:

Review and Recommendation of Bharat Rasayan Buyback 2021 by IZ team is: 4/10 [Current ER = 7%]

Final Entitlement

Category of Shareholders Ratio of Buyback
Reserved Category 12 Equity Shares out of every 79 fully paidup Equity Shares held on the Record Date
General Category 19 Equity Shares out of every 994 fully paid-up Equity Shares held on the Record Date

47 Comments

    As per NSE website, Bharat Rasayan buyback oversubscription is just 1.85%. Also, QIB/NII/MF/FII/DII participation has been dismal (not even consuming 10% of the non-retail quota). So, does it mean that retail acceptance should be good? To me it looks like around 40% acceptance for Retail Investors. Any comment ???

    Sir I am eligible for buy back, I didn’t get otp, so what to do

    UMESHJI KYA LAGTA HAI KI 1 SHARE BUYBACK ME LE LEGE, WHAT IS THE CHANCE LIKE HEG? THNX IN ADVANCE

    Umesh ji, I have 6 shares mail recd as zero entitlement any possibility of acceptance if I offer.

      There is no harm in tendering shares in the buyback.

    Buy back details available at http://www.nseindia.com

    BHARATRAS
    Issue Period 26-Mar-2021 to 12-Apr-2021(excluding 29-Mar-2021 and 02-Apr-2021)
    Issue Size Up to 93,472 equity shares
    Acquirer Bharat Rasayan Limited
    Offer Type BuyBack
    Issue Type Fixed price
    Offer Price Rs.11,500/- per equity share
    Tick Size Re.1
    Face Value Rs. 10/-
    Market Lot 1 Equity Share
    Market Timings 9.15 a.m. to 3.30 p.m.

    ABOVE 10555 IT MAY GO UP TO 15000 AND 18000 AS PER CHART ONLY BUT ONLY ABOVE CLOSING PRICE

    Bharat Rasayn Buyback – Record Date has been fixed as 5th March 2021.

    Buyback Price : 11,500

    Today’s Close : 9,748

    Buyback Size : 93,472 shares (107.49 crore ₹)

    Shares reserved for Retail : 14,021 shares

    Can anyone confirm if we should buy 1 share and tender in buyback
    Will it be accepted definitely

    Hi Umesh sir,

    The ER of 7% seems to be incorrect based on the calculation mentioned in GAIL buy-back page. Could you please confirm or am I missing something ?

    Should we enter for buyback purpose
    Or price is too high

    Also confirm if we can buy 1 share and then tender it
    Is there a surety that it will be accepted

      The rule is: All fractional entitlements are ignored. So, if you hold 1 share, your entitlement will be always NIL.
      However, before additional shares are accepted from anybody, those having 1 share is given priority. Therefore, there is almost 100% chance of 1 share being accepted, though there is no guarantee.

    Wait for the market to fall. Then these buyback will become good investments.

      How Sir??
      It will be a big investment..
      Please elaborate..
      Should be bought at this price level or not for buyback or investment purpose which you are saying??
      Regards!

    Should we buy single share…
    If is open offer buyback then it also probability of accepted Singal share in Bharat rasayan

    Bharat Rasayan buyback – This would be second time when acceptance ratio for single share won’t be 100%

    First time it was in HEG buyback

    I think buyback will be at a discount to cmp, as promoters need to bring down their holding to below 75%

      On what basis you say this?? It is the company which is doing buyback, not the promoters. don’t spread rumors please.

    Thanks Umesh ji, for Updating!!

    I would wait for declaration b4 taking any step..

    BR Promoters have already owned 74.79% share holding and more then 75% could not be as per sebi rules. So they could 0.21% buy back equity only. Is my thinking correct sir?

      Buyback is not done by promoter but by company. Promotor can rather also submit and sell. With Buyback the total no. of shares are reduced and %age of promoter is dependent on shares tendered by him. If he is able to sell more %age then his %age would reduce, rather

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