Emami Limited Buyback 2020

(i) Emami Limited is one of the leading and fastest-growing personal and healthcare businesses in India, with an enviable portfolio of household brand names such as BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, Fast Relief and Kesh King.

(ii) Established in 1974, they have a portfolio of over 300 + products based on ayurvedic formulations. The current operations comprise more than 60+ countries including. SAARC, MENAP, SEA, Africa, Eastern Europe and the CIS countries. Over 130 Emami products are sold every second somewhere around the world. Emami Limited, the flagship company of the Group, recorded a turnover of Rs 2693 crore, in 2018-19.

(iii) Emami acquired the heritage brand Zandu in 2008 on the basis of huge business synergy between the two brand portfolios.

(iv) Emami also acquired the Ayurvedic Hair & Scalp business of “Kesh King” as a business strategy in 2015. In January 2019, the company also acquired Creme 21, a German brand with strong roots & brand recall.

(vi) They employ around 3200 people, reach out to 45 lakh plus retails outlets through a network of 3200 distributors and have invested in Eight plants, Four regional offices, 1 overseas unit, Eleven overseas subsidiaries, 31 distribution centers and 1 Associate across India.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Mar 27 2020
Buyback Closing Date: Sep 26 2020
Buyback Offer Amount: ₹ 194
Date of Board Meeting approving the proposal: Mar 19 2020
Date of Public Announcement: Mar 19 2020
Price Type: Open Market
FV: 1
Buyback Price: ₹ 300 Per Equity Share

Details of Buyback:

The board has decided that company will do a buyback of equity shares having a face value of Re. 1 (Indian Rupee One Only) each (the "Equity Shares"), for an aggregate amount not exceeding Rs. 194.08 cr  ("Maximum Buyback Size") and at a price not exceeding Rs. 300/-  per Equity Share ("Maximum Buyback Price"), payable in cash, from its shareholders / beneficial owners (other than those who are promoters, members of the promoter group or persons in control), from the open market.

Salient financial parameters:

 
Particulars( in Cr) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Sales + 2,076 2,358 2,488 2,531 2,693
Expenses + 1,450 1,616 1,684 1,735 1,979
Operating Profit 626 743 805 795 714
OPM % 30% 31% 32% 31% 27%
Interest 5 54 58 34 21
Depreciation 34 255 309 311 325
PAT 486 363 340 307 303
EPS 10.05 8 7.5 6.77 6.68
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: “Emami Limited Buyback 2020” announces the buyback plan of its shares up to the price of Rs 300, it means that the company will be purchasing shares of "Emami Limited Buyback 2020" from the open market at a price not exceeding Rs.300 per share. Scenario 1- If the share price is below Rs.300 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. 300, in that case, the company will put buy order at Rs. 300 only and if someone is ready to sell at Rs.350 or less then the only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA

Recommendation:

It is an open market buyback.

    Market wizards sir please make a folder to discuss about Vedanta delisting as many invester r stuck at high price and looking for reliable plateform to get answers for questions….
    If i don’t tender in delisting will i be get future divided that company declared? Or my share will be zero ??