Zydus Lifesciences Limited Buyback 2022

i. Zydus Lifesciences Limited (Formerly known as Cadila Healthcare Limited), a leading Indian Pharmaceutical company is a fully integrated, global healthcare provider. With in-depth domain expertise in the field of healthcare, it has strong capabilities across the spectrum of the pharmaceutical value chain. From formulations to active pharmaceutical ingredients and animal healthcare products to wellness products, Zydus has earned a reputation amongst Indian pharmaceutical companies for providing comprehensive and complete healthcare solutions.

ii. One of the salient features of Zydus is its rich history and lineage. The origin of the company dates all the way back to the 1950s. The company was founded in the year 1952 by Mr. Ramanbhai B. Patel (late), a first-generation entrepreneur and a doyen in the field of Indian Pharmaceuticals.

iii. In 1995, the group was restructured and thus was formed Cadila Healthcare under the aegis of the Zydus group. From a humble turnover Rs. 250 crores in 1995 the group witnessed a significant financial growth and registered a turnover of over Rs. 15,000 crores in FY-21.

iv. Adhering to its brand promise of being dedicated to life in all its dimensions, Zydus continues to innovate with an unswerving focus to address the unmet healthcare needs. Simultaneously it rededicates itself to its mission of creating healthier, happier communities across the globe.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jun 02 2022
Buyback Opening Date: Jun 23 2022
Buyback Closing Date: Jul 06 2022
Buyback Offer Amount: ₹ 750 crores
Date of Board Meeting approving the proposal: May 20 2022
Date of Public Announcement: May 20 2022
Buyback Number of Shares: 1,15,38,461
Price Type: Tender Offer
FV: 1
Buyback Price: ₹ 650 Per Equity Share

Details of Buyback:

Board of Company approved the proposal to buyback of not exceeding 1,15,38,461 (One Crore Fifteen Lacs Thirty Eight Thousands Four Hundred Sixty One) fully paid-up equity shares of the Company, each having a face value of INR 1/- (“Equity Shares”), representing up to 1.13% of the total number of equity shares in the paid-up equity share capital of the Company, at a price of INR 650/- (Rupees Six Hundred and Fifty only) per Equity Share (“Buyback Price”) payable in cash for an aggregate amount not exceeding INR 750,00,00,000/- (Rupees Seven Hundred and Fifty Crores only) (“Buyback Size”) being 7% and 4% of the aggregate of the fully paid-up equity share capital and free reserves as per the latest audited standalone and consolidated financial statements of the Company as at March 31, 2022, respectively

Salient financial parameters:

Particluars (cr) Mar-20 Mar-21 Dec-21
Sales 14,253 15,102 15,158
Expenses 11,455 11,758 11,806
Operating Profit 2,798 3,344 3,352
OPM % 20% 22% 22%
Other Income -264 -171 2,492
Interest 342 164 112
Depreciation 696 725 735
Profit before tax 1,495 2,285 4,996
Net Profit 1,177 2,134 4,769
EPS in Rs 11.49 20.84 46.59

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Zydus Lifesciences Buyback 2022 in demat or physical form as on the record date [02.06.2022 ]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE. 3. Then on [To be updated], 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:

Buy 307 Shares at CMP of Rs.353[200000/650=307]
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 108371 108371 108371 108371
No. of Shares buyback 101 153 230 307
BuyBack Profit 29,997 45,441 68,310 91,179
Profit 27.68% 41.93% 63.03% 84.14%

Recommendation:

Review and Recommendation of Zydus Buyback 2022 from our IZ team is: 5/10 1-5: Fair 5-7: Good 7-10: Excellent. [There is an arbitrage of 82% from the CMP. Size of buyback is 750 Crores. As per annual report of 2021, the numbers of shareholders having shares between 1-500 are ~1.52 Crores, so AR in retail category could be ~20%]

41 Comments

    *Buyback Tip*

    As per section 10(34A), any income arising to a shareholder (including ESOP-shares) on account of buyback of shares by the company shall be exempt in the hands of such shareholders. Further, as per section 115QA, the tax @ 20% shall be paid by the unlisted company on the buyback of its shares.

    In nutshell, Profit/Gain (STCG/LTCG) arising on Buyback of Shares shall be *Tax Exempt* u/s 10(34A)

    #Buyback #unk

    Reply

    Looking to the subscription data it seems that AR will not be more than 10%-12% in Small Shareholder category

    Reply

    Can I request moderator to show designated Stock Exchange column as per Letter of Offer .. in this Buyback Designated Stock Exchange is NSE and not NSE and BSE

    Reply

    Hello,
    I am very new to stock market and now I am having 23 shares of Zydus life sciences. I wanna participate in buyback now. Plz can anyone suggest me what is the process.

    Reply

    *Zydus Lifesciences Limited (Buyback)*
    Buyback Open : *23-Jun*
    Buyback Close : *6-Jul*

    Reserved category : *26 Shares for every 503 held*
    General category : *1 Shares for every 101*

    Reply

    Offer Period for the Buyback will open on Thursday, June 23, 2022 and will close on Wednesday, July 6, 2022.

    Reply

    As per SEBI site no BUYBACK application pending as on 10/06/2022 it seems that ZYDUS and Motilal Oswal Buyback approvad by SEBI…. Any confirmation

    Reply

    dear umesh paliwalji/Shivramakrishna
    wat shd be the qty to be kept in one demat to be eligible in retail category for zydus life science?i have many accounts…

    Reply

    dear sumitji
    wat qty shd we keep in dp to be eligible in zydus buyback?

    Reply

      2 lac divided by share price on record date will be number of shares is to be purchased by you for reserve category.

      Reply

    Sir, If I expect a return of not less than 15%, is it a good idea to buy Matrimony and /or Zydus? Can any one throw some light and guide their personal view pls …

    Reply

    Birla Soft Buyback Particulars:

    Buyback size: upto 78,00,000 shares
    Buyback price : Rs. 500/-
    Buyback amount: Rs.390 Crores
    Mode : Through Tender Offer
    Record date : Yet to be announced
    CMP: Around Rs. 378/-

    Happy investing to all of you. Thank you.

    Reply

      Total shareholder below 2lac 280632 and shares are 40190669 .
      Reserved share for retail 1170000
      As on today entitlement ratio 1170000÷40190669 =19.7
      First time tried it .please confirm

      Reply

      1170000÷40190669=2.9% corrected figure for entitlement ratio

      Reply

        Sir my BOID is 1208880000923271
        I have purchased 70 share through paytm money . I want to enter in buyback offer please help.

        Reply

      wat shd be the qty to be kept in one demat to be eligible in retail category for zydus life science?i have many accounts…

      Reply

        What will be ER of general category ?Is it expected 85 to 90%’ some videos on you tube saying same.

        Reply

    This is a Good oppurtunity as the buyback is around at 85% premium and the stock is also trading near its support zone.

    Reply

    Asahi songwon also declared buyback through tender offer

    Reply

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