Insecticides India 2021 Buyback

(i) It wasn’t easy for Mr. Rajesh Agarwal to start Insecticides India Limited from nowhere, but his passion and sedulous character has today made IIL one of the leading company in the domestic agro chemical market. In the past one decade they have done lot of collaborations & tie-ups with reputed international companies like:

Nissan Chemical Corporation, Japan – Marketing Tie up for three specialty products Fungicide PULSOR, Selective Herbicide HAKAMA and Insecticide AIKIDO.

OAT Agrio, Japan for setting up product invention R&D Centre in JV–Insecticides (India) signed a JV with OAT Agrio Co., Ltd of Japan for setting up a R&D Centre in India with an objective of inventing new agrochemical molecules for the International market.

Momentive, USA – Tie up with MOMENTIVE Performance Material INC, USA for AGRO SPRED* MAX for silicone based super spreader.

Nihon Nohyaku, Japan – Tie up for SUZUKA (Flubendiamide), HAKKO (Buprofezin) and AIKIDO.

(ii) With 107 Branded formulations, 15 technical and 375+ SKUs, IIL today is evolving to make farmers aware and educate about sustainable crop development. IIL ‘hand-in-hand with farmer’ approach has made them a preferred brand among the farmers. Their Tractor Brand is the living validation of this success.

(iii) Products of the company:

Insecticide, Herbicide, Fungicide, Surfactants, and bio-logical.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 60 Crores
Date of Board Meeting approving the proposal: Mar 30 2021
Date of Public Announcement: Mar 30 2021
Price Type: Open Market
FV: 10
Buyback Price: ₹ 575 Per Equity Share

Details of Buyback:

The Board of Directors of the Company has approved the buyback of the fully paid-up equity shares of the face value of  10/- (Rupees Ten only) each ('Equity Shares') of the Company from its shareholders / beneficial owners excluding promoters, promoter group and persons who are in control of the Company, via the 'open market' route through the stock exchange mechanism, for an aggregate amount not exceeding  60 Crore (Rupees Sixty Crore only) ('Maximum Buyback Size'), and at a price not exceeding  575/- (Rupees Five Hundred and Seventy Five only) per Equity Share.

Salient financial parameters:

Particulars(in Cr) Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 906 994 1,073 1,194 1,363
Expenses 814 882 925 1,006 1,207
Operating Profit 92 112 148 188 156
OPM % 10% 11% 14% 16% 11%
Other Income 0 7 3 1 3
Interest 26 20 16 15 24
Depreciation 16 16 17 20 24
Profit before tax 50 82 118 153 111
Tax % 21% 27% 29% 20% 22%
Net Profit 40 60 84 123 87
EPS in Rs 19.15 28.89 40.78 59.42 42.05
Source: Screener.in

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: “Insecticides India 2021 Buyback” announces the buyback plan of its shares up to the price of Rs 575, it means that the company will be purchasing shares of "Insecticides India 2021 Buyback" from the open market at a price not exceeding Rs.575 per share. Scenario 1- If the share price is below Rs.575 in that case, the company will put buy orders at the current market price and purchase shares. Scenario 2- If the share price is above Rs. 575, in that case, the company will put buy order at Rs. 575 only and if someone is ready to sell at Rs.575 then the only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA as it is open-market buyback.

Recommendation:

NA as it is open market buyback.

8 Comments

    Does open market / open offer buyback have record date , open date and end dates for buyback ? Can anyone please confirn

    Reply

      Open Market has no record date and anyone can buy and wait for price to increase. There is a start date, which is 5th April. Company would buy from market like we buy, through exchange.
      Normally the rate increases due to continuous buying during buyback.
      So you can my anytime, try your luck to see if rate appreciates and then sell.
      The trigger to price increase is large no. shares been bought by company

      Reply

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