Gujarat Narmada Valley Fertilizers Buyback 2023 vs Siyaram Silk Mills Buyback 2023

The company is proposing the buyback to return surplus funds to the equity shareholder/beneficial owner of the Equity Shares as on the record date (Eligible shareholder) which are over and above its ordinary capital requirement and in excess of any current investment plans, in an expedient, efficient and cost-effective manner. Additionally, the company strives to increase the Shareholder's value and the buyback would result in the following benefits amongst other things:-

• The buyback will improve the financial ratios like Earning per share, return on capital employed, and return on equity by a reduction in the equity base of the company, thereby leading to a long-term increase in shareholder's value
• The buyback will help in achieving an optimal capital structure.
• The buyback will help the company distribute the surplus cash to its equity shareholders, thereby enhancing the overall return to equity shareholder.
• 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 the right entitlement of the shareholder or 15% of the number of Equity Share to be bought back whichever is higher, reserved for small shareholders.
• The buyback gives an option to the eligible shareholder to either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the buyback or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post buyback without additional investment.

The Buy Back is being proposed by the Company to fulfill the following objectives:

1. The Buy Back will help the Company to return surplus cash to its shareholders.
2. The Buy Back, which is being implemented through the tender offer involving a reservation for Small Shareholders of 15%. The Company believes that this reservation of 15% for Small Shareholders would benefit a large number of public shareholders.
3. The Buy-back will help in improving financial ratios like earnings per share, return on assets, and return on equity calculated on the basis of financial statements, by reducing the equity base of the Company.
4. The Buy Back gives an option to the shareholders holding Equity Shares of the Company, to either choose to participate and get cash in lieu of Equity Shares or choose not to participate and enjoy a resultant increase in their percentage shareholding.