| Buyback Ratio | | Category | Entitlement Ratio of Buyback | Shares Offered |
|---|
| Reserved Category for Small Shareholders | 3 Equity Shares out of every 19 Fully paid-up Equity Shares held on the Record Date. | 93,750 | | General Category for all other Eligible Shareholders | 3 Equity Shares out of every 121 Fully paid-up Equity Shares held on the Record Date. | 5,31,250 |
| | Category | Entitlement Ratio of Buyback | Shares Offered |
|---|
| Reserved Category for Small Shareholders | 25 Equity Shares out of every 103 Fully paid-up Equity Shares held on the Record Date. | 1,32,51,651 | | General Category for all other Eligible Shareholders | 25 Equity Shares out of every 103 Fully paid-up Equity Shares held on the Record Date. | 1,67,48,349 |
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| Necessity of the buyback | The Company is proposing the Buy Back to return surplus funds to the Eligible Shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, efficient and cost-effective manner. The Buy Back would increase the shareholders' value and would also help the company in fulfilling the following objectives:
- The Buy Back 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 the shareholders:
- The Buy Back, which is being implemented through the 'Tender Offer' as prescribed under the SEBI Buy Back Regulations, would involve allocation of 15% of the number of Equity Shares which the Company proposes to Buy Back or the number of Equity Shares entitled as per the shareholding of Small Shareholders, whichever is higher, to Small Shareholders. The Company believes that this reservation of 15% for Small Shareholders would benefit a large number of public shareholders, who would get classified as "Small Shareholders":
- The Buy Back may improve return on equity by reducing the equity base, thereby increasing shareholders' value in the long term.
- The Buy Back will help in achieving an optimal capital structure.
- The Buy Back gives an option to the shareholders holding Equity Shares of the Company, to either (i) choose to participate and get cash instead of Equity Shares to be accepted under the Buy Back Offer or (ii) choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buy Back Offer, without additional investment.
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- 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 to optimize the capital structure;
- The Buyback, which is being implemented through the Tender Offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of the number of equity shares as per their entitlement or 15% of the number of equity shares to be bought back, whichever is higher, reserved. The company believes that the reservation for small shareholders would benefit a large number of the Company's public shareholders, who get classified as "Small Shareholders, as per regulations 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 long-term increase in shareholders' vlaue; and
- 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 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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