Aarti Drugs Ltd.'s board on Monday approved share buyback worth Rs 59.85 crore. The company will be buying back up to 6.65 lakh shares representing up to 0.72% of the total paid-up equity shares of the company, according to an exchange filing.
Offer Price, Record Date
The company has set Rs 900 apiece as the maximum price it would offer to buyback the shares. This is a 44.6% premium to Monday's closing price.
The company has fixed Sept. 5, 2024, as the record date for the proposed shares buyback
Tender Offer Or Open Market
The buyback will be done through the tender-offer route.
In a tender offer buyback, the company announces a fixed price at which it will buyback shares from existing shareholders. For example, Wipro's buyback was fixed at Rs 445 per share.
Buyback Date
The company is yet to announce the opening and closing dates of the buyback.
How Many Shares Tendered Will Be Repurchased?
The number of shares that the company will repurchase depends on the acceptance ratio.
SEBI rules reserve 15% of the total tender offer for the small shareholder category, defined as an investor with an investment of not more than Rs 2 lakh in the company as of the record date. This company's total public holding is 44.33%, and the small shareholder category holding is 1.7 crore.
As mentioned above, 15% of the buyback offer of 6.65 lakh shares would be reserved for the company's small shareholders, which amounts to 0.6 crore shares. Hence, the acceptance ratio for the retail category would be 0.73%.
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