Note: If anything you want to know about the buyback offer you can refer the Ajanta Pharma Ltd. buyback offer documents. Click Here
DETAILS OF THE AJANTA PHARMA BUYBACK OFFER AND OFFER PRICE
Pursuant to the resolution passed by the Board of Directors of Ajanta Pharma Limited (the “Company”) (the Board of Directors of the Company are hereinafter referred to as the “Board” or the “Board of Directors”) on November 3, 2020 (“Board Meeting”), the Company hereby announces the buyback of fully paid-up equity shares of face value of ` 2 each (“Shares” or “Equity Shares”) of the Company not exceeding 7,35,000 (Seven Lakh Thirty Five Thousand) Equity Shares from the equity shareholders/ beneficial owners of Equity Shares of the Company including the promoter and members of the promoter group (the “Equity Shareholders” / “Shareholders”) as on Record Date (as defined hereinafter), on a proportionate basis, through “tender offer” process, in accordance with Article 18 of the Articles of Association of the Company, Section 68, 69 and 70, and other applicable provisions of Companies Act, 2013 including any statutory modification(s) or re-enactment thereof (the “Companies Act”), and applicable rules thereunder including the Companies (Share Capital and Debentures) Rules, 2014, as amended, the Buyback Regulations, at a price of ` 1,850/- (Rupees One Thousand Eight Hundred and Fifty only) per Equity Share (“Buyback Price” / “Buyback Offer Price”) payable in cash, for an aggregate maximum consideration not exceeding ` 135,97,50,000 (Rupees One Hundred Thirty Five Crores Ninety Seven Lakhs and Fifty Thousand only) (the “Buyback Offer Size”) (the process being hereinafter referred as the “Buyback” / “Buyback Offer”). The Buyback Offer Size and the Buyback Offer Price do not include taxes payable under Income Tax Act, 1961 and any expenses incurred or to be incurred for the Buyback viz., brokerage, turnover charges, taxes such as securities transaction tax and goods and services tax (if any), stamp duty, advisors fees, printing and dispatch expenses and other incidental and related expenses and charges (“Transaction Costs”). The Buyback Offer Size represents 5.52% and 5.26% of the aggregate of the Company’s paid-up capital and free reserves as per the audited financial
Objective For Buyback By Ajanta Pharma:
- The Buyback would help in improving Earnings Per Share (EPS), Return on Equity (ROE), Return on Capital Employed (ROCE);
- The Buyback will help in achieving optimal capital structure;
- The Buyback will help the Company to distribute surplus cash to the Equity Shareholders broadly in proportion to their shareholding, thereby, enhancing their overall return;
- The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve allocation of number of shares as per the entitlement of the shareholders or 15% of the number of Equity Shares to be bought back whichever is higher, 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 shareholder” as per 2(i)(n) of the Buyback Regulations;
- The Buyback gives an option to Equity Shareholders to either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or (ii) choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without any additional investment.
About Ajanta Pharma Ltd. Company
Ajanta Pharma Limited is a multinational company based in India engaged in development, manufacturing, and marketing of pharmaceutical formulations. It has a presence in India, the United States, and about 30 other countries in Africa, Asia, Middle East, and CIS. It was established in 1973
Ajanta Pharma is a specialty pharmaceutical company engaged in development, manufacturing and marketing of quality finished dosages. Ajanta Pharma produce a comprehensive range of specialty products targeting different therapeutic segments for treatment of patients, customized to each market. We clearly understand our customer’s needs and use cutting edge technology to present innovative solutions. Our business includes Branded Generics in emerging markets of Asia and Africa, Generics in the developed markets of USA and Institution sales.
Ajanta Pharma branded generics business is spread in India and more than 30 emerging countries across Africa, CIS, the Middle East and South East Asia. In India ajanta pharma have presence in high growth specialty segments of cardiology, dermatology, ophthalmology and pain management.
Ajanta Pharma have designed customized basket of products for each of these markets and serve wide range of therapeutic segments like Anti-Biotic, Anti-Malarial, Anti-Diabetic, Cardiology, Gynecology, Orthopedics, Pediatric, Respiratory & General Health products.
Ajanta Pharma Limited:
‘Ajanta House’, 98 Govt Industrial Area, Charkop, Kandivli (West),
Mumbai – 400 067, Maharashtra, India
Tel: 022 6606 1000; Fax: 022 6606 1200;