Marksans Pharma Buyback 2022

Marksans Pharma is engaged in the Business of Formulation of pharmaceutical products. Their key focus areas lie in the OTC & prescription drugs that have wide-ranging applications across fields like Oncology, Gastroenterology, Antidiabetic, Antibiotics, Cardiovascular, Pain Management, Gynaecology, among others.

They have established world-class manufacturing facilities by leveraging state-of-the-art technology, incorporating best practices and adhering to stringent regulatory compliances. Their plants are approved by prestigious US FDA, UK MHRA, Australian TGA and other foreign health authorities.

They R&D capabilities include dossier development, chemical synthesis, process optimization, formulation development, analytical development and conducting stability studies. They have a team of over 50 experienced scientists specializing in formulation development and analytical development.

They possess end-to-end capabilities – from Lab scale development to Pilot scale up and from commercializing the product for large scale manufacturing to marketing globally.

The company has achieved global recognition within a very short span of time and has major global expansion plans for the near future.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Jul 15 2022
Buyback Closing Date: Jan 14 2023
Buyback Offer Amount: ₹ 60 Cr.
Date of Board Meeting approving the proposal: Jul 08 2022
Date of Public Announcement: Jul 08 2022
Buyback Offer Size: 8.78%
Buyback Number of Shares: 1,00,00,000
Price Type: Open Market
FV: 1
Buyback Price: ₹ 60 Per Equity Share

Details of Buyback:

Marksans Pharma board of directors of the company at its meeting held on i.e. 08.07.2022 considered and approved the proposal for buyback of fully paid-up Equity Shares of the face value of Rs.1/-  not exceeding 1,00,00,000 Equity Shares (representing 8.78% of the total number of equity shares in the paid-up equity share capital of the Company) for an aggregate amount of Rs.60 Cr Only, of the total paid-up equity share capital and free reserves of the company as on March 31, 2022 (on a stand-alone and consolidated basis) at a price of Rs.60  on " Open Market Basis"

Salient financial parameters:

Particulars

 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 767 913 1,000 1,134 1,376 1,491
Expenses 722 834 868 942 1,037 1,232
Operating Profit 45 78 132 192 340 259
OPM % 6% 9% 13% 17% 25% 17%
Other Income 7 8 5 0 7 42
Interest 7 10 10 9 8 8
Depreciation 30 27 23 27 36 45
Profit before tax 15 50 104 157 302 248
Tax % 24% 28% 23% 23% 21% 25%
Net Profit 9 33 76 121 239 187
EPS in Rs 0.22 0.8 1.87 2.95 5.83 4.56
Dividend Payout % 23% 6% 3% 3% 4% 5%
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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: “Marksans Pharma ” announces buyback plan of its shares up to value of Rs 60, it means that the company will be purchasing shares of "Marksans Pharma " from the open market at a price not exceeding Rs.60 per share. Scenario 1- If the share price is below Rs. 60 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. 60, in that case, the company will put buy order at Rs. 60 only and if someone is ready to sell at Rs.60 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

No arbitrage is available.

Recommendation:

No arbitrage is available.

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