Godawari Power and Ispat Buyback 2024 vs Indus Towers Buyback 2024

The Buyback is being undertaken for the following reasons:

1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding.
2. The buyback will help the company to optimize its capital structure.
3. The buyback consists of a reservation for the small shareholder. The company believes that this reservation for small shareholders would benefit many public shareholders who would be classified as "small shareholders".
4. 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.
5. The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer.

The Buyback is being undertaken, inter-alia, for the following reasons:

• The current Buyback is in line with the Company's Shareholder-friendly capital allocation practices of enhancing overall Shareholders' value, thereby improving earnings per Share, and optimizing returns to Shareholders.
• The Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve allocation of number of Equity Shares as per their entitlement or 15% (fifteen percent) of the number of Equity Shares to be bought back, 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 would get classified as "small shareholders" as per Regulation 2(i)(n) of the Buyback Regulations.
• The Buyback gives the Eligible Shareholders the choice to either:
  • participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback; or
  • not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.