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 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 2020 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 [ To be updated ] by selling your shares through your broker on NSE or BSE. 3. Then on [ To be updated ], 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. 301.75 (2,00,000/400 = 500)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,50,875 1,50,875 1,50,875 1,50,875
No. of Shares buyback 165 250 375 500
BuyBack Profit 16,211 24,562 36,844 49,125
Profit 10.74% 16.27% 24.42% 32.56%

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