Ajanta has fixed May 30 as the record date for its buyback of 0.82% of the aggregate paid-up share capital of the company at Rs 2,770 per share. The pharma stock was trading at Rs 2,399.55, up 1% on BSE around 1:30 pm on Monday.
In its calculation, the domestic brokerage has given two scenarios for retail investors with holdings of less than Rs 2 lakh:
Scenario 1: Minimum Acceptance Ratio of 2%, where all participants tender 100% of their shares
The small shareholder category holds 6.3% (79.49 lakh shares) of the total holding. As per the guidelines, 15% of the total buyback is reserved for the “Small Shareholders” category.
Based on this, the brokerage firm calculates a minimum acceptance ratio of 2% for the small shareholder category.
Scenario 2: – Minimum Acceptance Ratio of 6%, where 30% participation is assumed by small retail holders
In this scenario, Axis Securities assumes only 30% of investor’s tender for the buyback offer, further lowering public holding to 23.84 lakh shares. This would result in an acceptance Ratio of 6%.
AgenciesThe return expected (payoff chart below) out of this buyback for the small shareholder category would be 6%-6.3% for a minimum acceptance ratio of 2%-6% (assuming the post-buyback share price is Rs 2,510/share) and the buyback price of Rs 2,770/share.
Agencies
Below is a table of scenario analysis of the buyback for different acceptance ratios:
AgenciesThe return expected (payoff chart below) out of this buyback for the small shareholder category would be 6%-6.3% for a minimum acceptance ratio of 2%-6% (assuming the post-buyback share price is Rs 2,510/share) and the buyback price of Rs 2,770/share.
Further, Axis Securities also expects a return of 5% in the next 3-4 months for the general category investors (whose capital exceeds Rs 2 lakh), assuming the post buyback price of Rs 2,510/share at FY26E P/E of 29X.
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