Natco Pharma Limited Buyback Offer 2018

Natco Pharma Limited was incorporated in Hyderabad in the year 1981 with an initial investment of INR 3.3 million. With a modest beginning of operations as a single unit with 20 employees, Natco today has seven manufacturing facilities spread across India with dedicated modern research laboratories, capabilities in New Drug Development, etc.

Natco family currently consists of more than 4000 employees, we are consistently ranked among fastest growing pharmaceutical companies in India. Natco is well recognized for its innovation in Pharmaceutical R&D.

Company Strengths

1. Research
The Company’s strength in research and people has been the cornerstone of its success, sustaining large investments in research initiatives of Rs.322 crores during the five years leading to FY17.

2. Culture
The Company is opportunity-driven, responding to new ideas and developments with industrial discipline on the one hand and strategic flexibility on the other.

3. Integration
The Company is integrated across the value chain – APIs to formulations – in the manufacture of select products leading to corresponding advantages in terms of cost, quality and logistics.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Opening Date: Nov 19 2018
Buyback Closing Date: May 18 2019
Buyback Offer Amount: ₹ 250 Cr
Date of Board Meeting approving the proposal: Nov 05 2018
Date of Public Announcement: Nov 05 2018
Buyback Offer Size: 8.10%
FV: 2
Buyback Price: ₹ 1000 Per Equity Share

Details of Buyback:

The Board of Directors of the Company, at its meeting held on 05.11.2018, have approved the buyback of fully paid up Equity Shares of a face value of Rs.2 each ("Equity Shares" and such buyback, the "Buyback"), for an aggregate amount not exceeding Rs.250 Crores (Two Hundred Fifty Crores only) excluding expenses like filing fees payable to the Securities and Exchange Board of India, stock exchange fees, advisors fees, public announcement publication expenses, transaction cost viz., brokerage, applicable taxes such as securities transaction tax, stamp duty, etc., and any other incidental and related expenses ("Maximum Buyback Size"), at a price not exceeding Rs.1000/- (Rupees One Thousand Only) per Equity Share payable in cash ("Maximum Buyback Price") from the Open market through stock exchange mechanism in such manner as may be prescribed in the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018.

Shareholding Pattern Pre and Post buyback:

Particulars Pre Buyback as on November Post Buyback
Category of Share Holder No. of Equity Share %  No. of Equity Share %
Promoters and Promoter Group 8,90,81,645 48.25 8,90,81,645 48.91
MFs/AIFs/Financial Institutional/Banks 1,13,77,032 6.16 9,30,52,720 51.09
FPIs/ FIIs 4,48,92,884 24.31
Bodies Corporate 49,15,286 2.66
Indian Public/Clearing member/IEPF/Trusts 3,29,52,358 17.85
NRIs/ Foreign Nationals/Overseas Body Corporate 14,15,160 0.77
Total 18,46,34,365 100.00 18,21,34,365 100.00
 

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: “Natco Pharma Limited” announces buyback plan of its shares up to value of Rs.1,000, it means that the company will be purchasing shares of "Natco Pharma Limited" from the open market at a price not exceeding Rs.1000 per share. Scenario 1- If the share price is below Rs. 1000, 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. 1000, in that case, the company will put buy order at Rs. 1000 only and if someone is ready to sell at Rs.1000 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

Natco Pharma Limited Buyback is an Open Market BuyBack In this method of share buyback, the company buys its own stocks from the market. This transaction happens through the company’s brokers. This repurchase program happens for an extended period of time as a large block of shares needs to be bought. The company is under no obligation to conduct the repurchase program after the announcement. The company has the option to cancel it. Also, it can make changes in the repurchase program according to company’s situations and needs. If this method is effectively implemented, it can prove to be very cost effective.

Recommendation:

Natco Pharma Limited Buyback 2018 Rating by InvestorZone team => 2. 1-5: Fair 5-7: Good 7-10: Excellent

Company Contact Details:

NATCO Pharma Limited Nalco House, Road No. 2, Banjara Hills, Hyderabad, Telangana - 500 034. Phone No. +91-40-2354 7532, Website: www.natcopharma.co.in

14 Comments

      is buy back offer still open if so when it will close
      i have not received offer letter so far

      Reply

    Tata Investment Corporation CMP 850

    Buyback price 1000

    I think there is chance of profit making.

    Reply

    Tata Investment Corporation on Friday said the board had approved a buyback of up to 45 lakh shares aggregating a sum of Rs 450 crore.
    The company’s board of directors approved the buyback in a meeting today. The shares amount to 8.17 percent of the total paid-up equity share capital at Rs 1,000 per equity share, Tata Investment Corporation said in a regulatory filing.
    The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the Securities and Exchange Board of India guidelines, it said.
    The size of the buyback doesn’t include any expenses incurred or that may be incurred in the exercise, such as fees for filing and advisory, public announcement publication expenses, printing and dispatch expenses, it said.
    The company said that the buyback is subject to approval of its shareholders which will be taken as a special resolution through a postal ballot.

    Reply

    Natco Pharma is engaged in developing, manufacturing and marketing finished dosage formulations (FDF) and active pharmaceutical ingredients (APIs). The company’s segments include active pharmaceuticals ingredient, finished dosage formulations, job works, pharmacy and others.

    The company’s product categories include domestic formulations, international formulations, API’s and blockbusters. The company manufactures over 20 products under contract.

    Natco Pharma reported over two-fold increase in consolidated profit after tax at Rs 181.6 crore for the second quarter ended September 30, 2018 compared to net profit of Rs 84.4 crore in the same quarter last fiscal.

    Total revenue during the period under review stood at Rs 583.5 crore against Rs 432.2 crore in the year-ago quarter.

    Reply

    Pls understand. There is no arbitrage opportunity here as it is not a tender offer. So pls do not invest for purpose of buyback

    Reply

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