Unichem Laboratories Limited Buyback offer Jan 2018

Unichem Laboratories Ltd is a pharmaceutical company. The company has 7 manufacturing units in India.The company operates through four divisions, namely Unichem Pharma Division, Unichem Specialities Division, Unisearch Division and Neu-Foreva Division. Unichem Laboratories Ltd is a pharmaceutical company.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 16 2018
Buyback Opening Date: Mar 07 2018
Buyback Closing Date: Mar 20 2018
Buyback Offer Amount: ₹ 885.8 cr
Date of Board Meeting approving the proposal: Jan 08 2018
Date of Public Announcement: Jan 08 2018
Buyback Offer Size: 25%
Buyback Number of Shares: 2.06 Cr
FV: 2
Buyback Price: ₹ 430 Per Equity Share
Letter for Offer Link

Details of Buyback:

1. The Board of Directors of Unichem Laboratories Limited has approved the Buyback of up to 2,06,00,000  Equity Shares at a price of Rs. 430/- (Rupees Four Hundred And Thirty Only) per Equity Share up to an aggregate amount not exceeding Rs. 85,80,00,000/-  which works out to be 24.26% of the aggregate of, through the "Tender Offer" route from the equity shareholders / beneficial owners of the Equity Shares of the Company as on the Record Date.

Salient financial parameters:

Parameters                           Standalone
       Pre-Buyback      Post- Buyback
(i) Net worth (in Crore)        3,651.74           2,765.94
(ii) Return on Net worth (%)         93.3%            123.1%
(iii)Earnings Per Share        280.95            363.25
(iv) Book Value per Share        401.57             393.25
(v) P/E         1.18              0.91
(vi) Total Debt/ Equity Ratio          0.01              0.02

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Unichem Laboratories Limited in demat or physical form as on record date 16.02.2018 2. Once you have shares in demat, you can participate in the buyback process which is opening from [07.03.2018 to 20.03.2018] by selling your shares through your broker on NSE or BSE. 3. Then on [02.04.2018], 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:

Unichem Laboratories Ltd. Buyback offer calculation for an investment of Rs 2,00,000 @ 370 per share. The total shares bid for the buyback is 541.
% Share Accepted No. of Shared Accepted Gain from Buyback
33% of 541 179 Rs. 10740
50% of 541 270 Rs. 16200
75% of 541 406 Rs. 24360
100% of 541 541 Rs. 32460

Recommendation:

IZ Rating: 4/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Registrar Contact Details:

Link Intime India Private Limited C 101, 247 Park, L.B.S. Marg, Vikhroli (West) Mumbai – 400083, Maharashtra Phone No. 022 49186270 Website: www.linkintime.co.in

Company Contact Details:

Unichem Laboratories Limited Unichem Bhavan, Prabhat Estate, Off S. V. Road, Mumbai Maharashtra 400102 Phone No. 022 66888333 Website: www.unichemlabs.com

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