HomeBuybackGranules India Limited Buyback 2022

Granules India Limited Buyback 2022

(i) It is a Pharma company. They have a strong presence in the ‘first line of defense’ products, including Paracetamol, Ibuprofen, Guaifenesin, and Metformin. They export nearly 60% of its revenue to the US and Europe.

(ii) The key customers include some of the leading generic, as well as, branded pharmaceutical companies.

(iii) They have emerged into a knowledge-driven, R&D focused, multi-product organization, with inherent strength in the efficient manufacturing of high-volume pharmaceutical products.

Buy Back Offer Deal:

Buyback Type:	Tender Offer
Buyback Record Date:	Aug 23 2022
Buyback Opening Date:	Sep 27 2022
Buyback Closing Date:	Oct 11 2022
Buyback Offer Amount:	₹ 250 Cr.
Date of Board Meeting approving the proposal:	Aug 09 2022
Date of Public Announcement:	Aug 09 2022
Buyback Number of Shares:	62,50,000
Price Type:	Tender offer
FV:	1
Buyback Price:	₹ 400 Per Equity Share

Details of Buyback:

Board of directors approved a buyback of 6,250,000 equity shares at a price of Rs. 400 per equity share for an aggregate maximum amount of Rs.2,500 Mn

Salient financial parameters:

Particulars (in crores)	2018	2019	2020	2021	2022
Sales	1,685	2,279	2,599	3,238	3,765
Expenses	1,406	1,895	2,073	2,382	3,038
Operating Profit	278	384	526	856	727
OPM %	17%	17%	20%	26%	19%
Other Income	27	75	90	26	13
Interest	33	28	27	26	23
Depreciation	76	105	137	151	159
Profit before tax	196	326	451	704	558
Tax %	32%	27%	26%	22%	26%
Net Profit	133	236	335	549	413
EPS in Rs	5.22	9.3	13.19	22.18	16.64
Dividend Payout %	19%	11%	8%	7%	9%

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How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Granules India Limited Buyback 2022 in demat or physical form as on record date on [ 23-08-2022] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 29.09.2022 ] by selling your shares through your broker on NSE or BSE. 3. Then on [ 20.10.2022 ], the settlement will be done for accepted shares and unaccepted shares will be returned to your demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 500 Shares at CMP of Rs. 316 (2,00,000/400 = 500)

Acceptance Ratio	33%	50%	75%	100%
Amount Invested in Buyback	1,58,000	1,58,000	1,58,000	1,58,000
No. of Shares buyback	165	250	375	500
BuyBack Profit	13,860	21,000	31,500	42,000
Profit	8.7%	13.2%	19.9%	26.5%

26 Comments

AR is around 21.5% . 46 out of 217 accepted .

Not a bad AR in the present circumstances. All the best to all of you.

I may please be enlightened regarding the Bidding particulars of the buyback of the shares of Granules India on closing. Thank you in anticipation of a kind response.

If possible, category wise

Hi Experts, I had 550 shares of granules on record date 23/08/22 but I have not received any entitlement email. Is there any other way to check my entitlement ?

Sir,
Please also check the spasm folder in the mail box as in many cases I have noticed that the mail was found in the spasm.

*GRANULES INDIA LTD. BUYBACK OFFER UPDATES*

✓CMP – *Rs 316.05/-*
✓BB PRICE – *Rs.400/-* per share
✓BB RECORD DT – *23/08/2022*
✓*Retail Entitlement *5.00%* ( _as expected_ )
✓ *TENDER PERIOD OPENS ON 27/09/2022* and *CLOSES ON 11/10/2022*
✓ *Settlement date 20/10/2022*

*As per calculation retail acceptance will be around *15%*.

Thanks Umesh Ji!

Need advice on below query:

Like for holding 610 shares I got email for my ER 30 shares

Does it makes sense to keep 610 and tender all at the time of buyback… or can I tender 100 only… ?
Will it make any difference in my AR , if i tender 100 instead of original 610 shares as on record date?
Anyhow 30 is fixed AR as of now.. right

Thanks in advance

Mannu ji we dont know how many people will apply in buyback when it will open. But as of now the expected AR would be around 15%. So, if you give all the 610 shares, chances of acceptance of ~90 shares.

any update regarding ER?

Care rating touched 509 against buyback price of Rs 515/- Sold all at Rs 508.8/- with 13% profit…

Congratulations, Sir. 13% is not a small one to ignore. All the best.

I really fear Granules been Pharma company in which I am badly stuck in many companies. Would buy, if market falls and it is available in the range of 300- 305… Else would let it go…

Sumit Jain ji,

Nowadays, your valuable suggestions/ views/ comments are not available. I hope and wish that everything is fine. Please make it convenient to enlighten me regarding your kind views regarding the Buybacks of Granules India, Quick heal and Birla soft. Thank you in anticipation of your kind response at the earliest.

Thanks SRK ji for your kind words…

Recent some Buyback have not been that good and I was also more into other secondary and offer like Ambuja Cement… Which have proved good…

Birlla soft , i have already invested, hopefully IT would improve. Granules seems to be good, would study more .. Quick heal is too low %age..

Advantage with offer like Ambuja was that there is no limit like retail etc… So with back cushion, it can be played well… It proved to be highly profitable…

Sumit ji,

I am indebted to you for your kindness in sharing your precious views. I wholeheartedly thank you very much for your prompt response. Please keep posting your valuable views to enlighten me. Your vast experience and multi dimensional knowledge will definitely help the readers. I once again express my gratitude for your kind help through your valuable suggestions from time to time.