FDC Buyback 2022

(i) A young visionary, Anand Chandavarkar, in the backdrop of India’s independence struggle, dreamed of building a world-class company in 1936. His vision of freedom was to create, to build, and to industrialize, in order to make the nation self-reliant in healthcare. In 1940, this partnership firm was incorporated as a private limited company – Fairdeal Corporation (Private) Limited and in 1986 its name was changed to FDC Private Limited. Thereafter, FDC became a public limited company and was listed on the Bombay and National Stock Exchange of India in 1996.

(ii) Today, FDC carries forward the flaming spirit of its first dream, achieving accreditations from the US-FDA, UK-MHRA, MCC-RSA, and the UAE, to cite a few.

FDC is a forerunner in the manufacturing and marketing of Oral Rehydration Salts (ORS) and Ophthalmics.

FDC has also set-up globally approved, multi-location manufacturing facilities for Active Pharmaceuticals Ingredients (APIs) as well as Finished Dosage Forms. These facilities are located at Roha, Waluj and Sinnar in Maharashtra, Verna in Goa, and Baddi in Himachal Pradesh.

FDC markets more than 300 products in India and exports many of these to over 50 countries.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 19 2022
Buyback Opening Date: Apr 12 2022
Buyback Closing Date: Apr 27 2022
Buyback Offer Amount: ₹ 137.75 Crores
Date of Board Meeting approving the proposal: Feb 09 2022
Date of Public Announcement: Feb 09 2022
Buyback Offer Size: 1.72%
Buyback Number of Shares: 2900000
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 475 Per Equity Share

Details of Buyback:

The Board of Directors at its meeting held on February 09, 2022 has inter-alia approved the proposal to Buyback its own fully paid up Equity Shares of Re. 1/- each ("Equity Shares") from the equity shareholders of the Company as on Record Date, for upto 29,00,000 fully paid up Equity Shares (being 1.72% of the total paid up equity capital of the Company) at a price of Rs.475/- (Rupees Four Hundred and Seventy Five only) per equity share ("Buyback Offer Price") for an aggregate amount not exceeding Rs.137,75,OO,OOO (Rupees One Hundred Thirty Seven Crores Seventy Five Lakhs Only) ("Offer Size"), (being less than 10% of the Paid Up Capital and free reserves as on March 31, 2021) on a proportionate basis through the "Tender Offer" route as prescribed under the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 ("Buyback Regulations") and the Companies Act, 2013 and the rules made thereunder ("Act") including statutory modification(s) or reenactment of the Act, for the time being in force).

Salient financial parameters:

Particulars( in Crores) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Sales 888 994 1,013 1,074 1,089 1,309 1,331
Expenses 690 765 775 842 861 1,017 997
Operating Profit 199 229 238 232 228 291 334
OPM % 22% 23% 23% 22% 21% 22% 25%
Other Income 46 39 50 45 43 114 95
Interest 2 1 1 1 1 3 3
Depreciation 39 34 35 35 33 38 38
Profit before tax 204 232 252 241 237 364 388
Tax % 27% 27% 25% 28% 28% 22%
Net Profit 148 169 189 174 170 275 301
EPS in Rs 7.84 9.44 10.55 9.9 9.69 16.03 17.85
Source: Screener.in

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of FDC Limited Buyback Offer 2020 in demat or physical form as on record date [ 19.02.2022 ]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 12.04.2022 to 27.04.2022 ] 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 421 Shares at CMP of Rs. 313 [2,00,000/475=421)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,31,773 1,31,773 1,31,773 1,31,773
No. of Shares buyback 138 210 315 421
BuyBack Profit 22,356 34,020 51,030 68,202
Profit 16.9% 25.8% 38.7% 51%

Recommendation:

Review and Recommendation of FDC Limited Buyback 2021 by IZ team is: 5/10 Fair: 1-5 Good:5-7 Excellent: 7-10 Past FDC Buyback FDC-2018 Finished the buyback within 2 months and the final AR was 13.55%. FDC-2019 Finished the buyback within 2 months and the final AR was 19.55% FDC-2020 Finished the buyback within 2 months and the final AR was 30%.

54 Comments

      Today my dmat account debited for 12 shares against eligibility of 6. My holding was 100

    Filatex India share Buyback particulars:

    Record Date: 8/4/2022
    Buyback Price : Rs. 140/-
    Mode of the buyback: Tender Offer
    CMP: Around Rs. 127/-
    Buyback Size: Rs. 59.5 Crores

        Thanks SRK ji.
        Seems to be agood profit making company at first instant . Also all the vitals seems to be good including retail %age etc…
        Have bought 1000 at125.40 in one account only.
        Would do more research to understand, why the market price is low considering its EPS. PES of 8.33 is also good..
        I am missing some thing…
        Kindly suggest your research or any info. Thanks

          Thanks Sumitji, SRKji

          What could be the possible retail ER that we can expect here…..Also, could see a gap of only 10% between the market price and buyback price. Any thoughts if it is good to enter.

          Please share your views

        HInduja would take 1-2 month atleast as would be done after Audit report is done…

      Thanks SRK ji.
      Seems to be agood profit making company at first instant . Also all the vitals seems to be good including retail %age etc…
      Have bought 1000@125.40 in one account only.
      Would do more research to understand, why the market price is low considering its EPS. PES of 8.33 is also good..
      I am missing some thing…
      Kindly suggest your research or any info. Thanks

    “The meeting of Board of Directors of the Company will be held on Thursday, 31st March, 2022, to inter-alia consider Buy Back of the fully paid-up equity shares of the Company,” GAIL said in a filing.

      Thanks for informing, should be bought at current price… Seeing the much escalated prive?

        Sumit ji,
        Unbelievable AR in TCS. 13/50 n 3/123. Very much disappointing. Let us be more watchful in the forthcoming Buybacks. Do you mind to share yours?

          Yes, it is bad, I was expecting more in general, but there is huge gap between current and Rs 4500..
          Anyway, as this is a good share,, i Would keep it..

    Hello i am holding shares of ESCORTS but how to buy back please guide
    How to participate in ESCORTS

      Its not Buyback, but open offer. It is so cumbersome that I decided to sell in open market at very very small profit.
      Anyway, rear letter of offer from Escorts and transfer shares to the Account specified using DIS Slip. Submit it to your broker and take receiving. Send the broker acknowledged copy of DIS Slip along with the application form to KFIntech (Registrar) by courier..
      last date is monday and i don’t think it would be possible, but you can try.
      Sorry for your loss

    Hello Sirs,

    Could someone please advise regarding the escorts open offer?

    For Gulf oil – Page created, but not visible in buyback list:
    Dear SRK ji
    Important point: Promoters having 71% equity would apply for only 11 L Shares i.e. 2.18% shares only. So condition similar to Nucleus, where small share holder may have small acceptance of 10-25% and other than small share holders would have 20-40%.
    Still, I feel like missing bus, as rate have appreciated from 485 to 512 and considering current market it may be possible that ultimately the return shares give more loss than gain in Buyback…
    I may buy more than 2L but at less than 500 only///
    Lets see, if it would be with me till 17th Feb, last day to buy for buyback

      Sumit ji,
      I am really indebted n grateful to you for your valuable guidance from time to time. I am learning a lot from your experience n expertise. Thank you once again for your kindhearted response to help me to learn more.

        Sir, Thanks for nice words.
        Request to kindly do a further research and with our collective wisdom.. We can achieve more…
        Have you bought it? what do you feel of current rate of 512? IS it Ok to buy now?

          Sir,
          I have already purchased 200 shares @ around Rs.495/-. I have placed buy order for 100 shares @Rs. 501/-. I am waiting for the rate and depending upon the situation, I don’t mind to revise the price upto Rs.506/-. Thank you.

      Thanks for the insights Sumit Ji.

      Please check my analysis.

      Retail quota Total Retail share capital (less than 2 Lac holding) Min ER =Retail quota/total retail shareholders (if all participate)
      212.500 5.532.461 4%

      Non Retail shares (total buyback-retail quota) Total Non Retail share capital ER – Non Retail (if all participate)
      1.204.167 9.774.588 12%

      It is not same as Nucleus. for Nucleus it was 44% and not 12%

      Arbitrage is 15%

        Yes Sir, its not as good as Nucleus as their promoter participation was far less and total share nos was higher.
        But point is it is “Probably” better to apply in General category than in small share holder, as confirmed to us in nucleus…
        I would prefer to apply as general in this, if I am able to get at less than 500..

      And i can also compare to Mayur. Promoters stocks who are willing to participate is 1.254.869

      Similar analysis gave me ER of 1% for retail, and around 10% for general (of all are willing to participate).
      In practice it will be more.

      And current arbitrage is 35%

      So from General category POV, should one not go for Mayur, instead of Gulf?

        Sir, For me to touch any company, I need security, after Buyback and there is probably more security in Gulf than Mayur ..
        EPS , margins and other parameters dont let me do anything with companies like Mayur..
        Sorry, but thats what I have learnt in 30 years..
        Please excuse

          Sumit ji,
          I have purchased 200 shares of Mayur @ around Rs. 475/-. May I sell at the CMP and go for gulf. Please guide me as I am unable to take any decision in this regard. Thank you.

            SRK ji,
            Its difficult, as it depends on individual risk profile. I can only suggest to check the details of both company and take a learned decision. Gulf price has increased much.. so is becoming risky… I have yet not got into both of them…
            Pl excuse

              Sumit ji,
              There is nothing to ask for an excuse. I wholeheartedly admire your nature and hence I may be taking too much liberty. After going through the particulars relating to Gulf, I have revised my purchase price to Rs. 511/- and got executed for 35 shares. Let me wait see the ultimate final outcome. Thank you.

          I would respectfully disagree. And perhaps a discussion for some other forum. Mayur is on transformation path from a supplier to footwear to supplier to automotive sector since many years. And they are executing on it. And now they are starting to supply to European auto manufacturers also. Its also shows in their OPMs (mid teens at start of last decade and early 20s now).

            Yes Sir, I agree.
            I am not much aware and only seen such low %age and not so good history…
            I have been proved wrong atleast 10 times than correct…

    Today being the last day to purchase for buyback, how much quantity we can keep for Retail Quota?

    200000/309 (CMP) = 647
    or
    200000/450 (BB price) = 421

    Thanks seniors n guide

      Sir, you may buy upto 500 shares. Buyback price is not the criteria but the price on record date which may not touch more than Rs.400/- range. All the best.

        thanks,

        FDC didnt touched Rs 320 even in last one month… so till 400 price with 500 shares we’re safe.. right sir

          235 shares only were purchased for tendering for the buyback. Thank you.

    Sumit ji,
    May I please have your valuable views on the Buyback of GULF OIL LUBRICANTS INDIA LIMITED? Thank you, Sir. Will be hopefully n eagerly waiting for your kind response.

      Please check in Gulf page, which is not visible in list but can be found by searching as Gulf..

    Gulf Oil Lubricants India Limited Buyback Particulars:

    Buyback size: upto 14,16,667 shares
    Buyback price : Rs. 600/-
    Mode : Through Tender Offer
    Record date : February 21, 2022
    Happy investing to all of you. Thank you.

    Results are very bad and %age (1.27%) is very low… I would look at it now, if rate falls to 270-280

      Sir,
      Thank you very much for your kind views which are taken note of.

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