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|
|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|
|Profit before tax||456||559||648||623||514||664||900|
|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:
98 Govt Industrial Area, Chark Kandivli (West)
Mumbai – 400 067, Maharashtra, India
Phone: +91 22 6606 1000
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
Vivro Financial Services Private Limited
Pravin Ratilal Share and Stock Brokers Limited
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