UPL Share Buyback - A simple analysis of UPL share Buyback!
This video is in Hindi and covers the following topics:
UPL Buyback - क्या आप Market से Share खरीद कर Buyback में participate कर सकते हैं?
Agro-chemicals major UPL Ltd on Wednesday announced a buyback of shares worth up to Rs 1,100 crore (the maximum buyback size) from shareholders, excluding promoters.
The buyback of shares will be at a price not exceeding Rs 875 per equity share through the open market route.
Buyback being 14.56% and 5.71% of its total paid-up share capital and free reserves as on 31st March, 2021 (on a standalone and consolidated basis, respectively).
Subject to the market price of the equity Shares being equal to or less than the maximum buyback price, the indicative maximum number of equity shares bought back would be 1,25,71,428 equity Shares, comprising approximately 1.65 per cent of the paid-up share capital of the company as of 2nd March, 2022 (on a standalone basis)
If the equity shares are bought back at a price below the maximum buyback price, the actual number of shares bought back could be more.
The company would utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback, that is Rs 550 crore (minimum buyback size).
Based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 62,85,714 shares.
Sources with direct knowledge told Moneycontrol that promoters of UPL may sell the company to effect a family separation
Cash requirement of promoters for personal matters may drive a sale of UPL, sources suggest
Investment bankers have been hired for the sale process. UPL has launched a buyback process which will also set a benchmark for the valuation of the sale process by the promoters
UPL in a response to Moneycontrol’s query said, “As a policy, the company does not comment on rumours.”
Promoters on the board of UPL are Rajnikant Shroff, Jai Shroff & Vikram Shroff
Promoter shareholding stands at 28.24% as of December 31, 2021.
ADIA, TPG Cap invested $1.2 billion for 22 percent in UPL Corp for acquisition of Arysta.
Recently, UPL reported 24.89 per cent growth in consolidated net profit at Rs 1,179 crore for the December quarter of 2021-22. The company's profit stood at Rs 944 crore in the year-ago period.
Revenue from operations grew 23.78 per cent during the quarter under review at Rs 11,297 crore, compared to Rs 9,126 crore in the same period of 2020-21.
Past performance of share price
Peers analysis
Predictive analysis for future targets
