08-May-2024
2 mins read
Ajanta Pharma plans to buy back 1,028,881 of its own shares. This represents the availability of about 0.82% of the total free float market shares in the market. The company intends to offer the issue type as a tender offer. In this offer, Ajanta Pharma is willing to purchase its shares from existing shareholders at a fixed price of Rs 2770 per share. The total value of this buyback is Rs 285 Cr, which is the amount the company is willing to spend to acquire these shares. Share buybacks are often initiated by companies to return value to shareholders or demonstrate confidence in their own financial health. In this case, Ajanta Pharma is making a formal offer to buy a specific number of its shares at a specified price from the market.
Details of Ajanta Pharma Limited
Ajanta Pharma Limited, established in 1979, is a speciality pharmaceutical company with a global presence. They manufacture and circulates in a market, a wide range of pharmaceutical formulations. The company widely focuses on a quality and their manufacturing facilities in India are US FDA-approved, and they operate a dedicated research and development centre. Ajanta Pharma caters to diverse markets, offering branded generics in India and emerging economies, generics in the USA, and institutional supplies in Africa. Its reach extends to over 30 countries, and its workforce is a testament to its global footprint, which employs over 7,700 people worldwide.
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Company’s Financials of Ajanta Pharma Limited (Amt In Crore)
The company reported its net revenue of 4,293.31 crore and Profit after Tax of 816.17 crore for the year ended March 31, 2024; Ajanta Pharma Limited witnessed a 12.03% and 38.80% increment in revenue and profit after tax, respectively.
| Period Ended | 31-Mar-24 | 31-Mar-23 |
| Assets | 4,638.39 | 4,679.02 |
| Revenue | 4,293.31 | 3,841.28 |
| Profit After Tax | 816.17 | 587.98 |
Ajanta Pharma Limited Buyback Details
| Issue Period | Yet to be announced |
| Security Name | Ajanta Pharma Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 1,028,881 (0.82 % of Total number of equity Shares) |
| Issue Size (Amount) | Rs 285.00 Crores |
| Buyback Price | Rs 2770 per share |
| Face Value | Rs 2 per share |
| Listing At | NSE, BSE |
Timetable of Ajanta Pharma Limited Buyback 2024
| Last Date to buy shares | 29-May-24 |
| Record Date | 30-May-24 |
| Offer Opens On | Yet to be announced |
| Last Date for receipt of Tender Forms | Yet to be announced |
| Offer Closes On | Yet to be announced |
| Finalisation of Buyback Acceptance | Yet to be announced |
| Last Date for settlement of bids | Yet to be announced |
| Last Date for Extinguishment of Shares | Yet to be announced |
The Necessity of the Ajanta Pharma Limited Buyback 2024
The necessity of the issue lies in several key factors. Firstly, the buyback serves as a means for the company to redistribute surplus cash to its shareholders, aligning with their respective shareholdings and thereby increasing overall shareholder returns. Secondly, the implementation of the buyback through the tender offer route, in accordance with SEBI Buyback Regulations, includes a provision where a portion of equity shares, either as per entitlement or a minimum of 15%, is reserved for small shareholders. This reservation is aimed at benefiting a significant number of public shareholders classified as "small shareholders" under SEBI regulations. Thirdly, the buyback is anticipated to enhance EPS and ROE by reducing the equity base, ultimately promoting long-term shareholder value. Finally, the buyback provides shareholders with the flexibility to either participate and receive cash for their equity shares or abstain from participation, resulting in an increased percentage shareholding post-buyback without additional investment. These factors collectively underscore the rationale behind the buyback initiative.
Lead Managers for Ajanta Pharma Limited Buyback 2024
The lead manager for Ajanta Pharma Limited Buyback is Vivro Financial Services Private Limited.
How to Apply for Ajanta Pharma Limited Buyback
Once buyback is open for subscription, you can click here to apply for the Ajanta Pharma Limited Buyback with Bigul.
How to Check Allotment Status for Ajanta Pharma Limited Buyback 2024
The registrar of Ajanta Pharma Limited Buyback is Link Intime India Private Ltd. You can check your allotment status by visiting here.
FAQs
- How many shares is Ajanta Pharma Limited planning to buy back?
Ajanta Pharma Limited plans to repurchase its 1,028,881 equity shares, which represents 0.82% of the total number of equity shares of the company.
- What is the last Date to buy shares to be eligible for the buyback?
The last date to purchase shares to be eligible for the buyback is May 29, 2024.
- What is the buyback price for Ajanta Pharma Limited shares?
Ajanta Pharma Limited set a buyback price at Rs 2770 per share.
- What is the record date for the Ajanta Pharma Limited buyback?
The record date of Ajanta Pharma Buyback is reported as May 30, 2024.
- How has the company performed financially?
The company reported its net revenue of 4,293.31 crore and Profit after Tax is 816.17 crore for the year ended March 31, 2024, Ajanta Pharma Limited witnessed 12.03% and 38.80% increment in revenue and profit after tax respectively.
- Where will the Ajanta Pharma Limited shares be listed?
The shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
- Who is the lead manager for the Ajanta Pharma Limited buyback?
The lead manager for Ajanta Pharma Limited Buyback is Vivro Financial Services Private Limited.
- How can I apply for the Ajanta Pharma Limited buyback?
Wait for the buyback to open for subscription, then click here to apply for the Ajanta Pharma Limited Buyback 2024 with Bigul.
- How do I check my allotment status for the Ajanta Pharma Limited buyback?
The registrar of Ajanta Pharma Limited Buyback is Link Intime India Private Ltd, you check your allotment status by visiting here.
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