| Buyback Ratio | | Category | Entitlement Ratio of Buyback | Shares Offered |
|---|
| Reserved Category for Small Shareholders | 5 Equity Shares out of every 63 Fully paid-up Equity Shares held on the Record Date. | 10,10,200 | | General Category for all other Eligible Shareholders | 19 Equity Shares out of every 239 Fully paid-up Equity Shares held on the Record Date. | 54,24,282 |
| | Category | Entitlement Ratio of Buyback | Shares Offered |
|---|
| Reserved Category for Small Shareholders | 10 Equity Shares out of every 367 Fully paid-up Equity Shares held on the Record Date. | 3,54,604 | | General Category for all other Eligible Shareholders | 10 Equity Shares out of every 367 Fully paid-up Equity Shares held on the Record Date. | 16,45,396 |
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| Necessity of the buyback |
- The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
- The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back, whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder” as per Regulation 2(i)(n) of the SEBI Buyback Regulations.
- The Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value, and
- The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to liquidate their Equity Shareholding in the Company or increase their percentage shareholding by abstaining from participating in the Buyback offer without any additional investment
| The Company is undertaking the Buyback after taking into account the strategic and operational cash requirements of the Company in the medium term and for returning surplus funds to the shareholders effectively and efficiently. The Buyback is being undertaken for the following reasons:
- The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
- The Buyback will help the company optimise its capital structure.
- The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocating the number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be repurchased, whichever is higher, reserved for small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who get classified as "small shareholders" as per Regulation 2(i)(n) of the SEBI Buyback Regulations.
- The Buyback may help in improving financial ratios like earnings per share, return on capital employed and return on equity, by reduction in the equity base, thereby leading to a long-term increase in shareholders' value; and
- The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash instead of Equity Shares to be accepted under the Buyback offer, or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
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