Freshtrop Fruits Limited Buyback 2024

Freshtrop Fruits Ltd. is a leading supplier of grapes and pomegranates from India to supermarkets in Europe for more than a decade. Freshtrop established a state-of-the-art juice processing plant at Nasik, Maharashtra.

The Company has identified following Business segments as reportable segment:

1. Fresh Fruits

2. Food Processing

The company has played a pioneering role in establishing exports of grapes and pomegranates from India to Europe. Business strength comprised of Fresh fruit exports to European supermarkets for over 20 years and processing Fruit like mango, guava, pomegranate, tomato adds to our strength. The three post harvest management facilities in Nasik, Sangli and Satara in Maharashtra, India and a Fruit processing facility in Nasik, Maharashtra gives it geographical advantage of easy access to good quality Fruits. Freshtrop has now entered the fresh-cut segment with ready-to-eat pomegranate arils packed in shelf-life extending MAP trays.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Apr 02 2024
Buyback Opening Date: Apr 08 2024
Buyback Closing Date: Apr 15 2024
Buyback Offer Amount: ₹ 33.68 Cr
Date of Board Meeting approving the proposal: Feb 12 2024
Date of Public Announcement: Feb 12 2024
Buyback Offer Size: 19.45%
Buyback Number of Shares: 19,25,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 175 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 19,25,000 (Nineteen Lakhs Twenty Five Thousand) equity shares of the Company (representing 19.45% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 175/- (Rupees One Hundred Seventy-Five Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 33,68,75,000/- (Rupees Thirty Three Crore Sixty-Eight Lakhs Seventy-Five Thousand only).

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 171 165 147 174 246
Expenses + 152 154 131 163 230
Operating Profit 20 11 15 11 16
OPM % 12% 7% 11% 7% 7%
Other Income + 5 2 4 5 1
Interest 1 1 1 1 2
Depreciation 5 5 5 5 5
Profit before tax 18 6 13 10 11
Tax % 23% 23% 27% 29% 23%
Net Profit + 14 5 9 7 8
EPS in Rs 11.31 4.15 8.69 6.89 8.55
Dividend Payout % 0% 0% 0% 0% 0%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Freshtrop Fruits Limited in Demat or physical form as on the record date [02/04/2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [08/04/2024] 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 248 Shares at CPM of Rs. 163 (2,00,000/175)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 40424 40424 40424 40424
No. of Shares Buyback 81 124 186 248
Buyback Profit 972 1488 2232 2976
Profit% 2.40% 3.68% 5.52% 7.36%

11 Comments

      Sold my holding of 600@165.7 and decided not to participate in the buyback.

          I sold my holdings of the first lot and booked profit @ 3.75/ or so. Now holding another 350/ bought today @162.5. Intend to repeat the process until record date or so.

    It’s financial parameters look good. Is under strict monitoring by the Regulatory Agencies. Circuit breaker is 2 percent.Issue size is big in terms of percentage.Will participate after it comes out of the lower circuit in a small way to know and for first hand experience..

    Something is fishy. Looks like buyback will get cancelled after shareholder’s vote.
    Promoters bought around 5% shares just one year ago, now are they planning to dump them after 1 year at 60% profit (and lowest 10% LTCG tax) ??

    Too fishy, too small company.
    Staying away, staying safe

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