Axita Cotton Buyback 2023 vs Goldiam International Buyback 2023

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.

The Buyback is undertaken for the following reasons:

1. The Company believes that the strong future and outlook of its business activities is not accurately reflected in the prevailing market price, thereby giving an opportunity for Buyback to create long-term value for its shareholders.
2. The Buyback would help in improving financial ratios like earnings per share and return on equity, by reducing the equity base of the Company; thereby, enhancing the overall return to shareholders.
3. The Buyback gives the Eligible equity shareholders the choice to either (A) participate in the Buyback and receive cash in lieu of Equity Shares accepted under the Buyback or (B) not to participate in the Buyback and enjoy a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.