Ajanta Pharma Buybacks details: All you need to know

Ajanta Pharma, an MNC, Multinational Company, was established in 1973. The company’s primary operation and production are based on developing, marketing, and manufacturing various APIs and other pharmaceutical formulations. The company has a diversified presence in India with a massive impact in the highly growth-based specialty segments. The company’s expertise hails in cardiology, pain management, dermatology, and ophthalmology. Let’s delve deep into understanding some key elements about the Ajanta Pharma Buyback Details.

Ajanta Pharma has also targeted its Emerging market segment to contribute to the branded generic business significantly. The company has a presence in the Asia and African regions. The company is engaged in the business of the range in the therapeutic segments. The core of this business lies in Anti-Biotic, Anti-Diabetic, Anti-Malarial, Orthopaedics, Cardiology, Paediatric, Gynaecology, Respiratory & General Health, and Hygiene based products. The total pay-out by the Ajanta Pharma buybacks of its equity shares will be Rs.356 crore.

The company’s prime Institutional business is to provide supplies to different government bodies, PSU’s, and government organizations in India. The company also supplies Anti-Malarial products. The WHO approves the company’s Anti-Malarial products. Ajanta Pharma has a broad network and reaches over more than 30 countries.

It employs around 7,000 people, including specialized technicians, scientists, and other professionals on the global level. The company currently has seven manufacturing facilities located in India. Amongst these seven, two are successfully approved as per the terms and regulations of the US FDA. Ajanta Pharma has a dedicated team of R&D that incorporates around 750 scientists.

OBJECTIVE OF THE AJANTA PHARMA BUYBACKS OFFER:

The company stated that the necessity of the Buybacks Issue aims at the following:

 I) Policy of the company to distribute their surplus funds in favor of the shareholders and increase and improve the overall Return of the shareholders.

 II) To improve their financial ratios and other operational ratios such as Earnings per share (EPS), Return on Equity (ROE), Return on Capital Employed (RoCE), and Return on assets (ROA).

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AJANTA PHARMA BUYBACKS DETAIL:

Issue Period	From Feb 3, 2022 to Feb 16, 2022
Security Name	Ajanta Pharma Limited
Issue Type	Tender Offer
Issue Size (Shares)	11.20,000 equity shares
Issue Size (Amount)	Rs. 285.60 Crores
Buyback Price	Rs. 2550 per equity share
Face Value of the Equity Share	Rs. 2 per equity share
Listing At	BSE, NSE
Buyback Offer Open Date	February 3, 2022
Buyback Offer Closing Date	February 16, 2022
Record Date for the offer	January 14, 2022
Last Date for receipt of Tender Forms	February 16, 2022
Finalisation of the Buyback Acceptance from the company	February 24, 2022
Last Date for settlement of the bids	February 25, 2022
Last Date for Extinguishment of Shares	March 4, 2022

BUYBACK RATIO:

Category	Entitlement Ratio of Buyback
Reserved Category for the Small Shareholders of the company	30 Equity Shares out of every 151 equity shares held as on the record date for the buyback offer.
General Category that is been eligible for all other Shareholders	1 Equity Shares out of every 91equity shares held as on the record date for the buyback offer.

MARKET REACTION ON BUYBACK:

At the company’s current valuation, Ajanta Pharma’s share buyback offer is currently at a premium of 18% from its CMP, Current Market Price of its last Closing price on February 2 of Rs 2,161. The buyback offer of the company is about 1.29% of the total equity shares of the company. It also includes an additional 9.89% of the paid-up share capital and the company’s free reserves. 

The company stated that it would include a share buyback consideration of Rs.286 crore along with the tax of Rs 70 crores. It will be on a proportionate basis through the tender offer process. The company also stated that it had a board meeting last year on December 28 to propose the buyback of the equity shares.  

Ajanta Pharma’s board recently approved the equity share buyback plan worth Rs. Two hundred eighty-six crores at Rs 2,550 per share, trading at a discount of nearly 18% from the buyback offer. The company board also stated that the offer would be 11,20,000 fully paid-up equity shares. After the approval of the company’s buyback offer, the company’s equity shares rose as such as to 7.23% to the Intraday high of Rs. 2,338 on the BSE. Check Live Subscription Status Here!

FINANCIAL PARAMETERS OF THE COMPANY:

Particulars in Crores (Rs.)	March 2015	March 2016	March 2017	March 2018	March 2019	March 2020	March 2021
Sales	1,474	1,749	1,983	2,126	2,055	2,588	2,890
Expenses	969	1,161	1,292	1,467	1,489	1,904	1,889
Operating Profit	504	589	691	658	567	683	1,001
OPM %	34%	34%	35%	31%	28%	26%	35%
Other Income	9	20	20	24	21	88	24
Interest	6	5	1	0	1	12	8
Depreciation	52	44	61	60	72	96	116
Profit before tax	456	559	648	623	514	664	900
Tax %	32%	26%	22%	25%	25%	30%	27%
Net Profit	310	416	507	469	387	468	654
EPS in Rs	35.25	47.23	57.59	53.25	44.35	53.6	75.56
Dividend Pay-out %	17%	17%	23%	0%	20%	24%	13%

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COMPANY CONTACT INFORMATION:

Ajanta Pharma Limited

‘Ajanta House’,

98 Govt Industrial Area, Chark Kandivli (West)
Mumbai – 400 067, Maharashtra, India
Phone: +91 22 6606 1000
Email: investorgrievance@ajantapharma.com
Website: http://www.ajantapharma.com/

AJANTA PHARMA BUYBACKS REGISTRAR:

Link Intime India Private Ltd
C 101, 247 Park, L.B.S. Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: ajantapharma.buyback2022@linkintime.co.in
Website: https://linkintime.co.in/

LEAD MANAGER(S):

Vivro Financial Services Private Limited

REGISTERED BROKER:

Pravin Ratilal Share and Stock Brokers Limited
Email: info@prssb.com