13-Feb-2024
2 mins read
The board has given its nod for the repurchase of 59.7 million equity shares, constituting 0.59% of the company’s total paid-up equity, through a tender offer process. This approach involves the company buying back shares at a predetermined price. The buyback, valued at Rs 600 crore, has been set at Rs 1,005 for each share, marking a 25% increase over the closing price of Zydus Life on Thursday. The eligibility for participating in this buyback is determined by a record date set for February 23, 2024; only shareholders owning shares as of this Date will qualify. Zydus Life’s US revenue stood at $221 million, a slight dip from the $225 million of the previous quarter and up from $192.5 million from the same period the previous year, falling short of the anticipated $234 million. The company’s net earnings for the December quarter were reported at Rs 790 crore, showing a 26.8% rise from the preceding year, with EBITDA margins widening to 24.4% from 22.5%, indicating an improvement of nearly 200 basis points. Currently, Zydus Life’s shares have decreased by 1%, trading at Rs 794.
Company Details of Zydus Lifesciences Limited
Zydus Lifesciences Limited stands as a prominent pharmaceutical corporation in India, extending its healthcare services on a global scale. This enterprise is engaged in the production of a diverse range of pharmaceutical offerings, including formulations, Active Pharmaceutical Ingredients (APIs), vaccines, biosimilars, complex formulations such as transdermals and topicals, products for animal health, and wellness items. With over 30 manufacturing facilities spread across various locations, including India, Germany, Brazil, and the USA, Zydus Lifesciences Limited ranks as the fourth largest pharma entity in India. Initially known as Cadila Healthcare Limited, the company has since rebranded to Zydus Lifesciences Limited.
Company Financials of Zydus Lifesciences Limited (In Crore)
Between the fiscal years ending March 31, 2023, and March 31, 2022, Zydus Lifesciences Limited experienced a revenue surge of 17.07% and an increase in profit after tax (PAT) of 78.25%.
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Revenue | 9,553.50 | 8,160.60 | 7,869.30 |
| Profit After Tax | 1,529.20 | 857.9 | 1,476.20 |
| Net Worth | 17,515.80 | 16,999.60 | 12,992.30 |
| Reserves and Surplus | 1,801.75 | ||
| Total Borrowing | 1,163.20 | 4,196.00 | 4,583.50 |
Zydus Lifesciences Limited Buyback 2024 Detail
| Issue Period | February 29, 2024 to March 6, 2024 |
| Security Name | Zydus Lifesciences Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 5,970,149 (0.59 % of Total number of equity Shares) |
| Issue Size (Amount) | Rs 600 Crores |
| Buyback Price | Rs 1005 per share |
| Face Value | Re 1 per share |
| Listing At | NSE, BSE |
Timetable of Zydus Lifesciences Buyback 2024
| Last Date to buy shares | 22-Feb-24 |
| Record Date | 23-Feb-24 |
| Offer Opens On | 29-Feb-24 |
| Last Date for receipt of Tender Forms | 6-Mar-24 |
| Offer Closes On | 6-Mar-24 |
| Finalisation of Buyback Acceptance | 13-Mar-24 |
| Last Date for settlement of bids | 14-Mar-24 |
| Last Date for Extinguishment of Shares | 26-Mar-24 |
The Necessity of the Zydus Lifesciences Limited Buyback 2024
The buyback aims to allocate a portion of the company’s excess cash to its equity shareholders, thereby improving shareholder returns and increasing shareholder value over the long term. This strategy is also expected to enhance the return on equity.
Lead Managers for Zydus Lifesciences Limited Buyback 2024
The lead manager for Zydus Lifesciences Limited Buyback 2024 is ICICI Securities Limited.
How to Apply for Zydus Lifesciences Limited Buyback 2024
Wait for the buyback to open for subscription, then click here to apply for the Zydus Lifesciences Limited Buyback 2024 with Bigul.
How to Check Allotment Status for Zydus Lifesciences Limited Buyback 2024
The registrar for Zydus Lifesciences Limited Buyback 2024 is Link Intime India Private Ltd. Click here to check your allotment status.
FAQs
- What is the necessity of the Zydus Lifesciences Limited buyback?
The buyback aims to efficiently distribute a portion of the company’s surplus cash to its equity shareholders, enhancing shareholder returns and increasing the overall value for shareholders over the long term. It is also intended to improve the return on equity.
- How many shares is Zydus Lifesciences Limited planning to buy back?
Zydus Lifesciences Limited plans to repurchase 5,970,149 equity shares, which represents 0.59% of the total number of equity shares of the company.
- What is the buyback price for Zydus Lifesciences Limited shares?
The buyback price has been set at Rs 1,005 per share.
- What is the record date for the Zydus Lifesciences Limited buyback?
The record date for the buyback has been fixed at February 23, 2024. Shareholders who own shares as of this Date are eligible to participate in the buyback.
- Where will the Zydus Lifesciences 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 Zydus Lifesciences Limited buyback?
ICICI Securities Limited is the lead manager for the buyback.
- How can I apply for the Zydus Lifesciences Limited buyback?
Wait for the buyback to open for subscription, then click here to apply for the Zydus Lifesciences Limited Buyback 2024 with Bigul.
- How do I check my allotment status for the Zydus Lifesciences Limited buyback?
The registrar for Zydus Lifesciences Limited Buyback 2024 is Link Intime India Private Ltd. Click here to check your allotment status.
- 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 February 22, 2024.
- What are the financial results of Zydus Lifesciences Limited for the recent fiscal years?
Between the fiscal years ending March 31, 2023, and March 31, 2022, Zydus Lifesciences Limited experienced a revenue surge of 17.07% and an increase in profit after tax (PAT) of 78.25%.