Insecticides India Limited Buyback 2024

1. Company Overview: Insecticides India Limited (IIL) is one of India’s leading agrochemical companies, founded in 2001. The company is engaged in the manufacturing and distribution of a wide range of agricultural chemicals, including insecticides, herbicides, fungicides, and plant growth regulators.

2. Business Model: IIL operates on a vertically integrated business model, encompassing everything from research and development to manufacturing and distribution. The company has a strong focus on both the domestic market and export opportunities. It has a comprehensive supply chain that ensures the availability of products across India and in international markets.

3. Product Portfolio: The company’s product portfolio includes popular agrochemical brands such as Lethal, Pulsor, Hakama, and Green Label. IIL is also known for its collaborations with global agrochemical giants, which allows it to introduce new and innovative products into the Indian market.

4. Branches and Subsidiaries: Insecticides India Limited has a widespread distribution network with over 4,000 distributors and 60,000 dealers across India. The company operates multiple manufacturing units located in various parts of the country, including Rajasthan, Jammu & Kashmir, and Gujarat. Additionally, IIL has a subsidiary, Shogun Organics Ltd., which specializes in manufacturing household insecticides.

5. Research and Development: IIL places a strong emphasis on research and development to drive innovation in its product offerings. The company has a state-of-the-art R&D center approved by the Department of Scientific and Industrial Research (DSIR), which focuses on developing new formulations and enhancing product efficacy.

6. Growth and Market Position: Over the years, Insecticides India Limited has shown consistent growth in both revenue and market share. The company has expanded its footprint in international markets, exporting its products to over 30 countries. Its strategic partnerships, strong distribution network, and focus on innovation have solidified its position as a leading player in the Indian agrochemical industry.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Sep 11 2024
Buyback Offer Amount: ₹ 50 Cr.
Date of Board Meeting approving the proposal: Aug 30 2024
Date of Public Announcement: Aug 30 2024
Buyback Offer Size: 1.69%
Buyback Number of Shares: 5,00,000
FV: 10
Buyback Price: ₹ 1000 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 5,00,000 (Five Lakh) equity shares of the Company (representing 1.69% of the total number of equity shares in the paid up share capital of the Company) at a price of  Rs. 1,000/- (Rupees One Thousand Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 50,00,00,000 (Rupees Fifty Crore only).

Salient financial parameters:

Particulars (In Cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 1,363 1,420 1,504 1,801 1,966
Expenses + 1,207 1,268 1,333 1,679 1,803
Operating Profit 156 153 171 122 163
OPM % 11% 11% 11% 7% 8%
Other Income + 2 -2 3 1 10
Interest 24 7 7 13 11
Depreciation 24 25 26 26 29
Profit before tax 110 119 141 84 133
Tax % 22% 22% 24% 25% 23%
Net Profit + 86 93 107 63 103
EPS in Rs 27.75 30.14 36.16 21.28 34.67
Dividend Payout % 10% 4% 6% 14% 9%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Insecticides India Limited in Demat or physical form as on the record date [11-09-2024]. 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 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 200 Shares at CPM of Rs. 997 (2,00,000/1000)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 199400 199400 199400 199400
No. of Shares Buyback 66 100 150 200
Buyback Profit 198 300 450 600
Profit% 0.10% 0.15% 0.23% 0.30%

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