CL Educate Buyback 2023 vs Siyaram Silk Mills Buyback 2023

The Buyback is being undertaken for the following reasons

(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;

(ii) The Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to an increase in shareholders' value; and

(iii) 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.

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.