The board of Aarti Drugs Limited had approved buyback of its equity shares in its meting held on Friday, July 21, 2023. The company has fixed August 4, 2023, as the record date to determine the shareholders who will be eligible for the buyback. You can check the announcement from the company here.
| Buyback Mathematics | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Date | 03-08-2023 | ||||||||||
| CMP | 602.05 | ||||||||||
| Retail Limited | 2,00,000.00 | ||||||||||
| No. of Shares | 331 | ||||||||||
| Investment Value | 1,99,278.55 | ||||||||||
| Buyback Price | 900.00 | ||||||||||
| AR (in %) | 10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | 100 | |
| Shares Accepted | 33 | 66 | 99 | 132 | 165 | 198 | 231 | 264 | 297 | 331 | |
| Profit | 9,832.35 | 19,664.70 | 29,497.05 | 39,329.40 | 49,161.75 | 58,994.10 | 68,826.45 | 78,658.80 | 88,491.15 | 98,621.45 | |
| Return (in %) | 4.93% | 9.87% | 14.80% | 19.74% | 24.67% | 29.60% | 34.54% | 39.47% | 44.41% | 49.49% |
Note that the above calculations are done by assuming the closing rate as on record date to be same as CMP.
What are the options available for tendering shares in the buyback?
Shareholders can tender their shares in the buyback through two categories: Retail and General. Eligibility for each category is determined by the value of shares held in the demat account as of the Record Date, which is August 4, 2023. Shareholders holding shares worth Rs. 200,000 or less will fall under the Retail category, while those holding shares worth more than Rs. 200,000 will fall under the General category.
If I have shares but pledge marked, am I still eligible for the buyback?
Yes, even if your shares are pledged, you remain eligible for all corporate action benefits, including the buyback. However, you must un-pledge the shares before the buyback order window closing date to tender them in the buyback.
If I have sold the shares on the record date, can I still participate in the buyback?
Yes, as you were holding the shares on the record date, you are eligible to participate in the buyback. However, to do so, you need to re-purchase the shares from the exchange and then tender them in the buyback offer.
Is there a limit to the number of shares I can tender in the buyback?
You can tender as many shares as you wish in the buyback. The actual number of shares accepted for buyback will depend on the entitlement ratio, and whether additional shares will be accepted or not will be determined by the acceptance ratio set by the company. Any shares that are not accepted in the buyback will be credited back to your demat account by the Registrar and Transfer Agent (RTA).