Atul Buyback 2021: The board of directors of Atul Ltd approved buyback of shares worth ₹50 crore, at a maximum price of ₹7,250 a share through open market purchases. At the maximum size and the price, the indicative maximum number of equity shares to be bought back would be 68,965 equity shares, which represent 0.23 per cent of the total number of equity shares of the company, it said in a notice to the stock exchanges. Currently, the public hold 55.18 per cent stake in the company. Shares of Atul closed one per cent higher at ₹6,373.80.
Atul is an improvement driven, integrated chemical company serving about 4,000 customers belonging to 30 industries across the world. The Company has established subsidiary companies in the USA (1994), the UK (1996), China (2004), Brazil (2012) and the UAE (2015) to serve its customers and thus enhance breadth and depth of its business.
Atul established successful joint venture companies with world-renowned multi-national companies namely American Cyanamid Company (now a part of BASF AG and Pfizer Inc) in 1947, Imperial Chemical Industries plc (now a part of Akzo Nobel and Astra Zeneca plc) in 1955 and Ciba-Geigy Ltd (now a part of BASF AG and Huntsman Corporation) in 1960.
Atul was founded on September 05, 1947 – a month after Indian independence – by Kasturbhai Lalbhai, an institution builder par excellence and a legendary Indian of his times. The Company was a manifestation of his dream to generate large-scale employment, create wealth in rural India and make the country self-sufficient in its requirements of chemicals.
Atul Buyback 2021 Offer Deal
| Symbol | ATUL |
| Offer Amount | ₹ 50 Cr. |
| Offer Type | Open |
| Offer Price | ₹ 7250 Per Equity Share |
| Buyback Offer Size: | 1.84% |
| Date of Board Meeting approving the proposal | Jan 29 2021 |
| Date of Public Announcement | Jan 29 2021 |
| Face Value | ₹ 10 |
Profit & Loss Consolidated Figures Of Atul Ltd.
| Particular | Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 1210 | 1174 | 1,532.00 | 1,775.00 | 2,029.00 | 2439 | 2637 | 2595 | 2834 | 3514 | 4038 | 4093 | 3581 |
| Expenses + | 1116 | 1067 | 1,381.00 | 1,569.00 | 1,780.00 | 2075 | 2236 | 2135 | 2324 | 3009 | 3271 | 3191 | 2730 |
| Operating Profit | 94 | 107 | 151.00 | 205.00 | 249.00 | 364 | 401 | 460 | 509 | 505 | 767 | 902 | 851 |
| OPM % | 8.00% | 9.00% | 0.10 | 0.12 | 0.12 | 15.00% | 15.00% | 18.00% | 18.00% | 14.00% | 19.00% | 22.00% | 24.00% |
| Other Income | 29 | 35 | 53.00 | 12.00 | 22.00 | 36 | 10 | 39 | 57 | 30 | 40 | 83 | 126 |
| Interest | 41 | 26 | 26.00 | 43.00 | 33.00 | 33 | 26 | 28 | 25 | 13 | 7 | 9 | 9 |
| Depreciation | 32 | 37 | 39.00 | 44.00 | 51.00 | 58 | 60 | 66 | 95 | 110 | 119 | 130 | 133 |
| Profit before tax | 50 | 79 | 139.00 | 130.00 | 186.00 | 308 | 326 | 404 | 446 | 412 | 680 | 845 | 834 |
| Tax % | 16.00% | 29.00% | 0.35 | 0.27 | 0.31 | 29.00% | 31.00% | 32.00% | 28.00% | 32.00% | 36.00% | 21.00% | |
| Net Profit | 42 | 56 | 90.00 | 91.00 | 120.00 | 219 | 241 | 274 | 323 | 276 | 432 | 666 | 622 |
| EPS in Rs | 18.71 | 30.43 | 30.71 | 40.38 | 73.9 | 81.13 | 92.44 | 108.88 | 93.21 | 145.72 | 224.69 | 209.69 | |
| Dividend Payout % | 21.00% | 21.00% | 0.15 | 0.15 | 0.15 | 10.00% | 10.00% | 9.00% | 9.00% | 13.00% | 10.00% | 12.00% |
Profit from the buyback on the bases of acceptance Ratio:
NA as it is open market buyback.
How to Participate in buyback?
In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market.
Example: “Atul Buyback 2021” announces the buyback plan of its shares up to the price of Rs 7250, it means that the company will be purchasing shares of “Atul Ltd.” from the open market at a price not exceeding Rs.7250 per share.
Scenario 1- If the share price is below Rs.7250 in that case, the company will put buy orders at the current market price and purchase shares.
Scenario 2- If the share price is above Rs. 7250, in that case, the company will put buy order at Rs. 7250 only and if someone is ready to sell at Rs.7250 then the only company will get back shares.
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