| Buyback Ratio | | 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 |
| | Category | Entitlement Ratio of Buyback | Shares Offered |
|---|
| Reserved Category for Small Shareholders | 39 Equity Shares out of every 415 Fully paid-up Equity Shares held on the Record Date. | 3,94,737 | | General Category for all other Eligible Shareholders | 23 Equity Shares out of every 248 Fully paid-up Equity Shares held on the Record Date. | 21,36,841 |
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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 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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- The Buyback is expected to achieve the following objectives:
- Optimise return to shareholders:
- Enhance overall shareholders' value; and
- Optimise the capital structure.
- The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations.
- The Buy Back gives an option to the shareholders holding Equity Shares of the Company, to either (i) choose to participate and get cash in lieu 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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