Jenburkt Pharmaceuticals Limited Buyback 2022

(i) Headquartered in Mumbai, India – Jenburkt Pharmaceuticals Ltd. has worked its way up from the solid foundation of the group laid by Late Shri Nandlal Mulji Bhuta in the 20th Century, established a deeply-trusted Pharmaceutical organization by Mr. Hemendra Nandlal Bhuta and Mr. Uttam Nandlal Bhuta.

(ii) Presently, Jenburkt manufactures and markets pharmaceutical formulations in India and internationally across 13 countries. With over 850+ committed team members across functions pan-India, we promote all our 85 brands across 100,000+ doctors regularly. Our company has more than 1,000 stockists and our reach extends to 400,000+ pharmacies across the globe.

(iii) The organization caters to large government, semi-government institutions, missionary hospitals, public sector enterprises, etc. Our products are also being exported to 13 countries globally.

(iv) In addition, Jenburkt has a Research & Development unit duly approved by the Ministry of Science & Technology, Government of India. Hence, the company has strong manufacturing facilities to cater to both the domestic and international market.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 11.60 Cr
Date of Board Meeting approving the proposal: Dec 01 2022
Date of Public Announcement: Dec 01 2022
Buyback Offer Size: 3.60%
Buyback Number of Shares: 1,65,242
Price Type: Open Market
FV: 10
Buyback Price: ₹ 702 Per Equity Share

Details of Buyback:

The Board of Directors of the company at its meeting held on i.e. 1.11.2022 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.10/- not exceeding 1,65,242 Equity Shares (representing 3.60% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs.11.60 Cr 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.702 on " Open Market Basis"

Salient financial parameters:

Particulars (In Cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales + 115 123 119 109 124
Expenses + 91 98 99 89 97
Operating Profit 24 25 20 20 27
OPM % 21% 20% 17% 18% 22%
Other Income + 3 3 4 4 5
Interest 0 0 1 0 0
Depreciation 2 1 2 2 2
Profit before tax 25 27 21 22 30
Tax % 32% 26% 30% 24% 25%
Net Profit 17 20 15 16 22
EPS in Rs 37.5 43.14 32.4 35.95 48.59

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: “Jenburkt Pharmaceuticals Limited” announces buyback plan of its shares up to value of Rs 702, it means that the company will be purchasing shares of "Jenburkt Pharmaceuticals Limited " from the open market at a price not exceeding Rs.702 per share.
Scenario 1- If the share price is below Rs. 702 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. 702, in that case, the company will put buy order at Rs. 702 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:

As it is an open market buyback, so no arbitrage is available.

1 Comment

    @702 buyback by open offer.
    Cosmo film @1070 tender offer and RD IS 14.12.22

    Reply

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