Emami Limited is a company that is engaged in the business of healthcare. The Company was established in 1974 in Kolkata. It is the flagship company of Emami Group. The Company is a leading and fastest-growing company in the personal and healthcare businesses of the country. The Company has a wide product portfolio of over 300+ products. It is based on Ayurvedic formulations. The Company has many famous household brands under its product line. Fair and Handsome, Boro Plus, Menthol Plus Balm, Navratna, Kesh King, Zandu Balm, and Fast Relief. The Company has also entered into a new business venture. It recently entered the Home Hygiene Category. The Company in this range launched EMASOL. It was launched in a Range of Products. Checkout Emami Limited buyback 2022 price, size, buyback acceptance ratio and more details.
Emami has an employee base of 3100 people. The Company has a market base of 45 lakh plus retail outlets. It has strong distribution and network connections. Emami also has a network that includes 2800 distributors. The Company has 7 plants in an association. It has 4 regional offices and 1 overseas unit. The company also has seven overseas subsidiaries. It also has 26 distribution centres and 2 Associates across the country. Emami has a global presence. The Company’s operations are carried out in more than 60 countries. Emami has a presence in SAARC, SEA, and Africa Region. The Company sells its products also in Eastern Europe and the CIS. Last year, Emami Limited had a turnover in excess of Rs. 2881 crores.
NECESSITY OF THE ISSUE:
The objective of the Buyback of the Company is:
- To improve the financial matrix of the Company. The financial matrix is ROE, RoCE
- Reduction of the equity base of the Company
- Long-term wealth creation with an increase in shareholders’ value.
EMAMI LIMITED BUYBACK 2022 OFFER DETAILS:
| Buyback Type | Open Market Buyback |
| Buyback Record Date | Open Market Buyback, so no record date as for tendering process |
| Buyback Offer Amount | Rs. 162.00 Crores |
| Date of Board Meeting approving the proposal | 03 February 2022 |
| Date of Public Announcement | 09 February 2022 |
| Buyback Offer Size | 0.66 % of the equity capital of the Company |
| Buyback Number of Shares | 29,45,455 equity shares of the Company |
| Listing | NSE, BSE |
| Face Value | Rs. 1 |
| Buyback Price | Rs. 550 per equity share. |
| Buyback Opening Date | 09 February 2022 |
| Buyback Closing Date | 08 August 2022 |
FINANCIAL TRENDS OF EMAMI LIMITED BUYBACK 2022:
| Particulars | For the year ending with the amount as in Rs. in millions | ||
| 31 March 21 | 31 March 20 | 31 March 19 | |
| Total Income | 29,508.00 | 27,119.50 | 27,295.30 |
| Profit After Tax | 4,547.10 | 3,023.00 | 3,025.30 |
| Net Worth | 17,626.50 | 18,237.50 | 20,760.60 |
| Earnings Per Share (Rs) | 10.23 | 6.68 | 53.03 |
| CEPS (Rs) | 18.58 | 14.23 | 30.60 |
| DPS (Rs) | 8.00 | 4.00 | 100.00 |
| Book NAV/Share (Rs) | 39.65 | 40.24 | -1.47 |
| Tax Rate (%) | 19.93 | 18.78 | 6.14 |
| Core EBITDA Margin (%) | 30.66 | 26.01 | 17.86 |
| EBIT Margin (%) | 20.36 | 15.09 | 34.91 |
| Pre – Tax Margin (%) | 19.90 | 14.30 | 39.15 |
| PAT Margin (%) | 15.93 | 11.61 | 37.17 |
| Cash Profit Margin (%) | 28.67 | 24.28 | 18.07 |
| ROA (%) | 17.66 | 11.22 | 57.39 |
| ROE (%) | 25.59 | 15.81 | 61.84 |
| ROCE (%) | 30.16 | 18.99 | 58.84 |
| Asset Turnover (x) | 1.11 | 0.97 | 14.74 |
| Sales/Fixed Asset (x) | 0.98 | 0.92 | 5.76 |
| Working Capital/Sales (x) | 6.75 | 11.00 | -38.64 |
| Fixed Capital/Sales (x) | 1.02 | 1.08 | -5.45 |
| Receivable days | 34.20 | 36.05 | -5.13 |
| Inventory Days | 34.54 | 32.06 | 7.72 |
| Payable days | 132.60 | 128.28 | 3.36 |
| PER (x) | 47.67 | 25.43 | 87.44 |
| PCE (x) | 26.25 | 11.95 | 119.63 |
| Price/Book (x) | 12.30 | 4.22 | 191.12 |
| Yield (%) | 1.64 | 2.35 | -30.28 |
| EV/Net Sales (x) | 7.43 | 2.94 | 153.12 |
| EV/Core EBITDA (x) | 22.46 | 10.43 | 115.37 |
| EV/EBIT (x) | 36.51 | 19.46 | 87.63 |
| EV/CE (x) | 8.50 | 2.91 | 191.94 |
| M Cap / Sales | 7.53 | 2.90 | 159.33 |
| Net Sales Growth (%) | 8.50 | -1.48 | 676.21 |
| Core EBITDA Growth (%) | 27.52 | -1.90 | 1545.34 |
| EBIT Growth (%) | 46.37 | -6.18 | 849.84 |
| PAT Growth (%) | 48.83 | 1.18 | 4035.91 |
| EPS Growth (%) | 53.03 | 0.06 | 84972.67 |
| Total Debt/Equity (x) | 0.05 | 0.12 | -54.81 |
| Current Ratio (x) | 1.61 | 1.30 | 23.35 |
| Quick Ratio (x) | 1.18 | 1.00 | 18.52 |
| Interest Cover (x) | 44.18 | 19.07 | 131.74 |
| Total Debt/Market cap (x) | 0.00 | 0.03 | -84.46 |
EMAMI LIMITED BUYBACK CALCULATION OF ACCEPTANCE RATIO:
The calculation for the buyback is done. It is done considering that the investor buys 363 equity shares of the Company. The buying price is Rs. 450
The calculation is as: Rs.2,00,000 / 550 buyback price = 363 shares.
The amount invested will be in terms of 363 * Rs. 450 = Rs. 163,350
| Acceptance Ratio | Investment | Shares Buyback | Profit |
| 33% | Rs. 163,350 | 121 | Rs. 12,095 |
| 50% | Rs. 163,350 | 181 | Rs. 18,325 |
| 75% | Rs. 163,350 | 272 | Rs. 27,488 |
| 100% | Rs. 163,350 | 363 | Rs. 36,650 |
MARKET SUBJECT:
The Board of the Company has approved the proposal for the buyback. The Company plans to buy around 0.66 percent of the Company’s equity shares. The buyback is Rs. 162 crores at Rs. 550 per equity share of the Company. The Company has started the buyback offer. It is payable in cash, representing 2.97 % of the free reserves of the Company.
On the buyback day, the Company’s shares rose to nearly 4.1 percent. The stock ends the day with a closing price of Rs. 491.79. The stock of the Company also recorded a high of Rs. 498.4. The intraday low was Rs. 471.3. The stock of the Company has surged nearly 14% in the last year. The company board has not stated any minimum purchase requirements. No other conditions are mentioned in their open market-based buyback. The Company also stated that they would enhance their buyback size.
It will be done if the equity shares have been bought back well below the buyback price, currently, as of the latest shareholding pattern of the Company. The promoters of the Company hold 54.28 percent. The institutional players hold 16.43 percent. The non-banking mutual funds hold 20. 61 percent. The retail investors are the minority shareholders of the Company. They hold 4 percent of the Company’s equity.
The updated details as of 06 May are as follows:
- Open: Rs. 475.6
- High – Low: Rs. 487 – Rs.470.7
- Previous Close: Rs. 483.8
- Total Traded Value: 213358
- Close: Rs. 474.8
Change of: -Rs. 1.20 (-1.86%)
COMPANY ADDRESS:
Emami Limited
Emami Tower, 687
Anandapur E M Bypass,
Kolkata -700 107,
West Bengal, India
Phone: +91-33-66136264
Email: investors@emamigroup.com
Website: http://www.emamiltd.in
REGISTRAR OF THE EMAMI LIMITED BUYBACK 2022:
Maheshwari Datamatics Pvt. Ltd
23, R.N Mukherjee Road,
5th Floor Kolkata West Bengal 700001
Tele: 033 22482248 / 22435029
Email: mdpldc@yahoo.com
Website: http://www.mdpl.in
MANAGER OF THE EMAMI LIMITED BUYBACK 2022:
IIFL Securities Ltd
10-floor IIFL Center Kamala Mills
Senapati Bapat Marg
Lower Parel (West), Mumbai – 400013
Telephone No: +91 22 46464600
Fax No: +91 22 24931073
Email: emami.buyback2022@iiflcap.com
Website: https://www.iiflcap.com
