In the dynamic landscape of financial strategies, Zydus Lifesciences Ltd. has recently announced a buyback of shares in the year 2024. This strategic move has sparked intrigue within the investment community, prompting both shareholders and potential investors to delve into the intricacies of this significant development.
About Company
• Zydus Lifesciences. the group has manufacturing capabilities across the entire pharmaceutical value chain: including formulations, APIs, vaccines, biosimilar, complex products (transdermal, topical etc.), animal health products and wellness products. It has more than 30 manufacturing plants worldwide including India, Brazil and USA. US generic contributes 40% of revenue followed by India at 47% and Consumer Wellness at 12%.
• As on 12th Dec 2023 company has a total net worth of Rs.187.33bn.
Zydus Lifesciences Ltd. Buy Back Opportunity
The company has approved the proposal for the buyback of Equity Shares at a price of Rs.1005/- per equity share up to an aggregate amount not exceeding Rs. 6bn from the shareholders of the Company on a proportionate basis through a tender offer.
| CMP (Rs) |
805.6 |
| Buy Back Price (Rs) |
1005 |
| Acceptance Ratio* |
4.49% |
Buy Back Details
| Total no. of share to be bought |
59,70,149 |
| Total no of equity share |
2,70,23,402 |
| Buyback % of total equity share |
0.59% |
| Reserved for Retail* quota (15%) |
8,95,532 |
| Max share retail investor can buy^ |
199 |
| Record date |
23rd Feb,2024 |
Company Info
| BB Code |
ZYDUSLIFE IN EQUITY |
| ISIN |
INE010B01027 |
| 52 WKH(Rs.) |
862.85 |
| 52 WKL(Rs |
452.2 |
| Market Cap {INR Bn) |
867.00 |
Shareholding Pattern (%)
|
Dec-23 |
Sep-23 |
June-23 |
| Promoters |
74.98 |
74.98 |
74.98 |
| FII's |
4.99 |
4.85 |
4.04 |
| DII's(Rs |
12.96 |
13.01 |
13.44 |
| Public |
6.99 |
7.07 |
7.47 |
Acceptance and Profit & Loss Scenario
| No. of Shares to Buy* |
Total investment @ Rs.748 |
Acceptance Ratio(%) |
Buyback no shares |
Value of accepated share via buy Buyback price share value at Rs.850 |
Left over Shares |
Profit/loss scenario post Buyback if client
sell remaining share |
| At Rs.649 |
At Rs.722 |
At Rs.803 |
At Rs.892.5 |
| 235 |
1,75,780 |
5 |
11.0 |
9,350 |
224 |
11.98% |
-2.67% |
7.65% |
19.05% |
| 235 |
1,75,780 |
10 |
23.0 |
19,550 |
212 |
10.61% |
-1.80% |
7.97% |
18.76% |
| 235 |
1,75,780 |
15 |
35.0 |
29,750 |
200 |
-9.23% |
-0.93% |
8.29% |
18.47% |
| 235 |
1,75,780 |
20 |
47.0 |
39,950 |
118 |
-7.86% |
-0.05% |
8.61% |
18.18% |
| 235 |
1,75,780 |
30 |
70.0 |
59,500 |
165 |
-5.23% |
1.62% |
9.22% |
17.63% |
| 235 |
1,75,780 |
40 |
94.0 |
79,900 |
141 |
-2.49% |
3.37% |
9.87% |
17.05% |
| 235 |
1,75,780 |
50 |
117.0 |
99,450 |
118 |
0.14% |
5.04% |
10.48% |
16.49% |
Source: Company, CEBPL
Note:
*Actual acceptance ratio may vary,
^Assume stock price reached Rs.1005 on ex-date,
#round down to nearest integer
* Retail shareholders holding less than Rs 2 Lac shares as on “Record Date”
* Please note acceptance Ratio is Dynamic in Nature can be change on Record date
