HomeBuybackEmami Limited Buyback 2023

Emami Limited Buyback 2023

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.

Established in 1974, The Company has a portfolio of over 300 + products based on ayurvedic formulations. Emami’s current operations comprise more than 60 countries including SAARC, MENAP, SEA, Africa, Eastern Europe and the CIS countries. Nearly 150 Emami products are sold every second somewhere around the world. Emami Limited, the flagship company of the Group, recorded a turnover of Rs 3192 crore, in 2021-22.

Emami acquired the heritage brand Zandu in 2008 based on huge business synergy between the two brand portfolios.

Emami also acquired 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. In 2022, the Company acquired ‘Dermicool’, one of the leading Prickly Heat and Cool Talc brands of India.

The Company employs more than 3200 people, reaches out to 49 lakh retail outlets through a network of over 2800+ distributors and has invested in 7 plants, 4 regional offices, 5 International Offices, 1 overseas unit, 8 overseas subsidiaries, 1 Domestic Subsidiary, 26 distribution centres and 2 Associates across India.

Buy Back Offer Deal:

Buyback Type:	Open Market
Buyback Opening Date:	Apr 13 2023
Buyback Closing Date:	Sep 19 2023
Buyback Offer Amount:	₹ 186 Cr.
Date of Board Meeting approving the proposal:	Mar 24 2023
Date of Public Announcement:	Mar 24 2023
Buyback Offer Size:	9.99%
Buyback Number of Shares:	41,33,333
Price Type:	Open Market
FV:	1
Buyback Price:	₹ 450 Per Equity Share

Details of Buyback:

The Board of Directors of the company at its meeting held on i.e. 24.03.2023 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.1/- not exceeding 41,33,333 Equity Shares (representing 9.99% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs. 186 Crore Only, of the total paid-up equity share capital and free reserves of the company as on March 31, 2022 at a price of Rs. 450 on "Open Market Basis"

Salient financial parameters:

Particulars	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Sales +	2,531	2,695	2,655	2,881	3,192
Expenses +	1,812	1,970	1,970	2,000	2,254
Operating Profit	719	725	685	880	938
OPM %	28%	27%	26%	31%	29%
Other Income +	19	25	46	69	90
Interest	34	21	21	13	5
Depreciation	311	325	336	367	335
Profit before tax	393	403	374	569	688
Tax %	22%	25%	19%	20%	-22%
Net Profit	306	303	302	455	837
EPS in Rs	6.77	6.68	6.67	10.23	19.02
Dividend Payout %	52%	60%	60%	78%	42%

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” announces buyback plan of its shares up to value of Rs 450, it means that the company will be purchasing shares of " Emami Limited " from the open market at a price not exceeding Rs. 450 per share. Scenario 1- If the share price is below Rs. 450 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 450, in that case, the company will put buy order at Rs. 450 only and if someone is ready to sell at that price or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

As it is an open market buyback, so no arbitrage is available.

15 Comments

Wipro to consider buyback on 27th April

Poonawalla Fincorp also considerbuyback on 26th April

Nowhere is on bse site written about buy back of poonawala

Kindly provide details, as nothing is there at BSE website,

Got it – Its debentures buyback and not of shares.
buyback of 5 (five) outstanding series of retail debentures issued to the public pursuant to the
Shelf Prospectus and Tranche I Prospectus details of which have been more particularly set out
in Part A of Annexure 1 attached hereto; and
ii. buyback of 2 (two) outstanding series of debentures issued on private placement basis pursuant
to the disclosure documents, the details of which have been more particularly set out in Part B
of Annexure 1 attached hereto

The total equity of Emami is 44,11,50,000 and shares to be bought back is 41,33,333 . It is 0.93% and not 9.99%.
The data shown above is highly misleading.
I have bought shares considering that this buyback would be of ~10% and therefore definitely appreciation. But seeing the today’s share movement, I recheck and found error in investor zone.
It has become now very common to make such error by investor zone.
I again request to kindly check and recheck data before posting, as thousands if not lakhs follow you.

Emami has turned into an interesting stock. The current situation is that 10% of the equity would be bought back and retail holders are low, implies appreciation.
But there is an expectation of drop in profits , which would lead to drop..
Anyway bought 1000@364.05 , appear to be a very risky trade