Ashiana Housing Buyback 2023 vs Axita Cotton Buyback 2023

The Buy Back is being proposed by the Company to fulfill the following objectives:

1. The Buy Back will help the Company to return surplus cash to its shareholders.
2. The Buy Back, which is being implemented through the tender offer involving a reservation for Small Shareholders of 15%. The Company believes that this reservation of 15% for Small Shareholders would benefit a large number of public shareholders.
3. The Buy Back may help in improving return on equity.
4. The Buy Back will help in achieving an optimal capital structure.
5. The Buy Back gives an option to the shareholders holding Equity Shares of the Company, to either choose to participate and get cash in lieu of Equity Shares or choose to not participate and enjoy a resultant increase in their percentage shareholding.

The buyback is a capital allocation decision taken by the company. The buyback will help the company to distribute a part of the surplus cash to its shareholders holding Equity Shares thereby, optimizing returns to the shareholders and enhancing the overall shareholders' value in the longer term, and improving the return on equity.