VRL Logistics Buyback 2023 vs Welspun Enterprises Buyback

The Buyback offers the following advantages:

a) 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.

b) The Buyback may help in improving its return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders' value.

The Buy-back is being undertaken for the following reasons:

1. The Buy-back will help the Company to return surplus cash to its members;
2. The Buy-back would involve the allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholders";
3. The Buy-back may help in improving return on equity;
4. The Buy-back gives an option to the members 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;
5. Optimizes the capital structure and enhances investor confidence.