| Buyback Ratio | | Category | Entitlement Ratio | Shares Offered |
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| Small Shareholders | 8 : 75 | 1,33,970 | | General Category | 4 : 45 | 7,59,159 |
Note: Small Shareholders are retail shareholders under SEBI regulations. General Category includes all other eligible shareholders. Entitlement ratio is based on fully paid-up equity shares held on the record date.
| | 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 Buyback is undertaken for the following reasons:
- The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares thereby enhancing the overall return for them.
- The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve a reservation of up to 15% of the Equity Shares, which the Company proposes to buyback, for small shareholders or the actual number of Equity Shares entitled as per the shareholding of small shareholders on the Record Date, whichever is higher. The Company believes that this reservation for small shareholders would benefit a significant number of the Company’s public shareholders, who would be classified as “Small Shareholders”.
- The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base of the Company, thereby leading to a long-term increase in shareholders’ value; and
- The Buyback gives an option to the Eligible Shareholders to either (A) participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or (B) not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, 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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