Paushak Limited Buyback Offer Jan 2018

Paushak Limited Buyback

Paushak Limited is the part of Alembic Group of companies situated in Gujarat, India. Alembic Group is in the pharmaceutical business for a long time. The core business line of Paushak is development and marketing of phosgene based pharma intermediates. The company has manufacturing process for gases like phosgene, isocyanates, chloroformates, Carbonyl Chlorides and Acid Chlorides. The company has a workforce of 200 + people and produces 150 tons of phosgene every month.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Mar 23 2018
Buyback Opening Date: Apr 27 2018
Buyback Closing Date: May 14 2018
Buyback Offer Amount: ₹ 21.25cr
Date of Board Meeting approving the proposal: Jan 24 2018
Date of Public Announcement: Jan 24 2018
Buyback Offer Size: 3.90%
Buyback Number of Shares: 1.25 Lacs
FV: 10
Buyback Price: ₹ 1700 Per Equity Share
Letter for Offer Link

Details of Buyback:

Details of

Paushak Limited Buyback

Offer are: The Company meeting held on Monday, 12th March 2018 had unanimously approved and finalized the proposal for buy-back of up to 1,25,000 (representing 3.90% of the total paid-up Equity Shares of the Company) at a price of 1,700/- (Rupees One Thousand Seven Hundred Only) per Equity Share payable in cash for a total consideration not exceeding 21,25,00,000/- (Rupees Twenty One Crore Twenty Five Lac Only) excluding Transaction Costs and have fixed Friday, 23rd March, 2018 as record date for the purpose of determining the equity shareholder(s) of the Company eligible to tender Equity Share(s) in Buy-back Offer

Salient financial parameters:

Parameters

Standalone
     Pre-Buyback      Post- Buyback
(i) Net worth (in Crore)        9,203.61      7,078.61
(ii) Return on Net worth (%)        14.87%      19.34%
(iii)Earnings Per Share         42.69       44.42
(iv) Book Value per Share        286.97      229.67
(v) P/E         20.52       19.71
(vi) Total Debt/ Equity Ratio -- --

Source of funds for the Buyback:

The Buy-back will be financed out of the Company’s free reserves and/or current surplus and/or cash and cash equivalents and/or internal accruals and/or liquid resources and/or other permissible sources of funds but not from any borrowed funds.

Shareholding Pattern Pre and Post buyback:

  Particulars        Pre-Buyback      Post- Buyback
 Equity Shares % Equity Shares %
(i) Promoters and Members of Promoter Group 21,38,479 66.68 20,62,405 66.92
(ii) Foreign Investors (including NRIs, FIIs and Foreign MFs) 10,559 0.33 10,19,709 33.08
(iii) Financial Institutions / Banks & Mutual Funds 83 0.00
(iv) Others 10,57,993 32.99
 Total 32,07,114 100.00 30,82,114 100

How to Participate in buyback?

How to Participate in

Paushak Limited Buyback

Offer: 1. Firstly to be eligible for the buyback the investor should have shares of Paushak Limited in demat or physical form as on record date 23 March 2018. 2. Once you have shares in demat, you can participate in the buyback process which is opening from 27th April 2018 by selling your shares through your broker on NSE or BSE. 3. Then on [.], 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:

Paushak Limited Buyback offer calculation for an investment of Rs 2,00,000 @1460 per share
% Share Accepted No of Shared Accepted Gain from Buyback Offer
33% 45 Rs 10800
50% 68 Rs 16320
75% 103 Rs 24720
100% 137 Rs 32880
 

Recommendation:

Review and Recommendation of

Paushak Limited Buyback

from our side is: Rating: 3/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Registrar Contact Details:

Link Intime India Private Limited B-102 &103, Shangrila Complex, First Floor, Near Radhakrishna Char Rasta, Akota Vadodra - 390020 Gujarat

Company Contact Details:

Paushak Limited Alembic Road, Vadodra Gujarat 390003

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