FRESHTROP FRUITS LTD Buyback 2019

Freshtrop Fruits Ltd. has been a leading and consistent supplier of grapes and pomegranates from India to supermarkets in Europe for more than a decade.

Steadfast focus on quality and a systematic and thorough approach to food safety and traceability have been the directing forces for Freshtrop’s operations. The Company’s continuous efforts towards building and expanding relationships with growers have enabled it to become a dependable supplier of fresh produce.

Seeking to harness the existing backward linkages and with a view to bring the same high standards of quality and food safety to the processed domain, Freshtrop established a state-of-the-art juice processing plant at Nasik, Maharashtra, about 180 km from Mumbai in 2009.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Oct 11 2019
Buyback Opening Date: Nov 21 2019
Buyback Closing Date: Dec 04 2019
Buyback Offer Amount: ₹ 11 Cr
Date of Board Meeting approving the proposal: Aug 23 2019
Date of Public Announcement: Aug 23 2019
Buyback Offer Size: 8.23%
Buyback Number of Shares: 10,000,00
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 110 Per Equity Share

Details of Buyback:

The Board of Directors of the Company at its meeting held on 23.08.2019 has interalia approved a proposal to buy back up to 10 Lakh Equity Shares of the Company, being  8.34% of the total paid-up equity share capital for an aggregate amount not exceeding Rs.11 Crores at Rs. 110 under the "Tender offer" route using the stock exchange mechanism. Promoters have shown interest in participating in the buyback.

Salient financial parameters:

Particulars(Cr) 2019 2018 2017 2016
Revenue 171.41 176.39 142.24 119.02
Other Income 4.65 1.54 3.15 2.61
Total Income 176.05 177.93 145.39 121.63
Expenditure 152.98 160.47 127.67 103.83
Net Profit 13.74 8.3 9.02 8.05
Equity 12.15 12.15 12.15 12.15
EPS 11.32 6.84 7.42 6.63

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of FRESHTROP FRUITS LTD Buyback 2019 in demat or physical form as on record date. [ 11.10.2019 ] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 21.11.2019 to 04.12.2019  ] by selling your shares through your broker on NSE or BSE. 3. Then on [ 13.12.2019  ], 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 1818 Shares at CMP of Rs. 107 [2,00,000/110=1818)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,94,545 1,94,545 1,94,545 1,94,545
No. of Shares buyback 599 909 1363 1818
BuyBack Profit 1797 2727 4089 5454
Profit 0.92% 1.40% 2.10% 2.8%

Recommendation:

Review and Recommendation of FRESHTROP FRUITS LTD Buyback 2019 by IZ team is: 2/10. [ Expected AR= 10-15%] The share price is almost equal to the buyback price. So hardly any juice left in the buyback price] Final Acceptance Ratio
Category No. of Shares reserved for Buyback No. of Valid Applications Total Shares Tendered % Response
Retail Shareholders 1,50,000 519.00 2,04,805 136%
General Category 8,50,000 97 73,07,323 859%
Final AR= 73%

3 Comments

    India bulls venture to consider buyback on 11 pct.
    Please check and recommend in a new thread

    Reply

    Freshtrop fruit board fixes 11 October as record date for buyback

    Reply

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