Freshtrop Fruits Ltd Buyback 2022

i. For more than a decade, Freshtrop Fruits Ltd. has been a leading and consistent supplier of grapes and pomegranates from India to European supermarkets.

ii. Freshtrop’s operations have been guided by a steadfast focus on quality and a systematic and thorough approach to food safety and traceability. The Company’s ongoing efforts to develop and expand relationships with growers have allowed it to become a reliable supplier of fresh produce.

iii. Freshtrop established a state-of-the-art juice processing plant in Nasik, Maharashtra, about 180 kilometres from Mumbai, in 2009, in order to capitalise on existing backward linkages and to bring the same high standards of quality and food safety to the processed domain.

 

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Dec 20 2022
Buyback Closing Date: Feb 07 2023
Buyback Offer Amount: ₹ 800 Lakhs
Date of Board Meeting approving the proposal: Dec 07 2022
Date of Public Announcement: Dec 07 2022
Buyback Offer Size: 9.89%
Buyback Number of Shares: 6,95,652
Price Type: Open Market
FV: 10
Buyback Price: ₹ 115 Per Equity Share

Details of Buyback:

The Board of Directors of the company at its meeting held on i.e. 7.12.2022 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.10/- not exceeding 6,95,652 Equity Shares (representing 9.89% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs 800 Lakh 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.115 on    " Open Market Basis"

Salient financial parameters:

Particulars (in Cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales + 176 171 165 147 174
Expenses + 158 152 154 131 163
Operating Profit 17 20 11 15 11
OPM % 10% 12% 7% 11% 7%
Other Income + 1 5 2 4 5
Interest 1 1 1 1 1
Depreciation 4 5 5 5 5
Profit before tax 13 18 6 13 10
Tax % 38% 23% 23% 27% 29%
Net Profit 8 14 5 9 7
EPS in Rs 6.83 11.31 4.15 8.69 6.89

How to Participate in buyback?

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: “ Freshtrop Fruit Limited ” announces buyback plan of its shares up to value of Rs 115, it means that the company will be purchasing shares of " Freshtrop Fruit Limited " from the open market at a price not exceeding Rs.115 per share.
Scenario 1- If the share price is below Rs. 115 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. 115, in that case, the company will put buy order at Rs. 115 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:

No arbitrage is available as it an Open Market Buyback.

28 Comments

    In TRIVENI eng bulk sell by MD and chairman of company. Share fall 4.5%
    Forum mentioned that they may called off buyback .is it possible?? I doubt it

    Reply

      I think once announced buyback thn they cant cancel it any way.
      Waiting for experts comments.

      Reply

      @Ayush ji any idea on cash of this company which they may use in buyback.
      Thanks.

      Reply

        Mohsin Ji, Kama Holdings has good cash and bank balance in FS as of 31-03-2022 to fund the buyback.

        Buyback size can vary from 35 crores to 95 crores if we calculate a range of 10% to 25% of PUC+FR in FS as of 31-03-2022.

        Moreover, there is no past history of the buyback of this company. So it’s difficult to predict whether it will be an open market or a tender route BB.

        Reply

        Thanks.
        Someone saying company sold out 6 lkh shares of SRF in last quarter. Around 150cr amount.
        And
        If promoters holding 75% so i think they compalsary need to participate and so may be it come tender route buyback.

        Reply

          Mohsin Ji, yes you are right it will come as tender route BB. Good Analysis by you👍. I was reading in the BSE announcement section where the company mentioned that they would decide on the quantum and mode of buyback, appointment of intermediaries and other matters incidental thereto including Record Date.

          So we can conclude that the record date is only announced in the case of the tender route.

          Reply

            Please provide your insight on ER after the BB details are out of KamaHolding.

            And moreover, I read your message about HGS BB where you mentioned it would announce BB around 19th Dec, can you please provide the source of information?

            Reply

      The company has a good amount of Investments in its book as of 31-03-2022. If we consider 25% of Paid up capital and reserve then the maximum size of buyback in Bajaj Consumer will be around 200 crores.

      Reply

      Dear Girishji, Nice to see this advance info on buyback…..From where do you track these info, so that we can also consume it. Thank you

      Reply

      Sorry for delay,bajaj information on cnbc strip on tv ,kama holding here only some on chittorgar app some on investor zone and some time in interviews. No fix place

      Reply

    Jagran Crossed 75, Buyback price… 100% AR confirmed!!! :-}

    Reply

    Please be very careful. Very bad results. Very small equity, can easily be swayed. I would wait till final document before taking any action.

    Reply

      Such comments are helpfull. I hope collective sharing are helping us .Thanks

      Reply

        Freshtrop buyback will be of a very small amount.

        As per the financial statement of 31-03-2022, they have an Investment, cash and bank balance of around 2 crores. So be careful about this. If already holding or purchased in the last 2 days it is suggested to book profit in this because the price increased sharply in the last 2-3 trading sessions.

        Reply

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