Zydus Lifesciences Buyback 2022 description – The Company was incorporated as Cadila Healthcare Private Limited on 15 May 1995 as a private limited company under the provisions of the Companies Act, 1956. The company converted to a public limited company and its name was changed from Cadila Healthcare Private Limited to Cadila Healthcare Limited on 17 July 1996. Subsequently, the name of the company was changed to its present name i.e., ‘Zydus Lifesciences Limited’ on February 24, 2022.
Zydus Lifesciences is engaged in the business of manufacturing, marketing, research and development, import and export of drugs and pharmaceutical products. The company has 32 manufacturing facilities/ plants/ factories in India. The company also has 6 research and development centres in India for generic formulations, API, vaccines, biologics, new chemical entity across multiple dosage forms.
Zydus Lifesciences Share Buyback 2022 Details
| Buyback Dates | 23 June – 6 July 2022 |
| Zydus Lifesciences Buyback Price | INR650 per share |
| Buyback Offer Size (Shares) | 1,15,38,461 shares |
| Buyback offer as % of total shares | 1.13% |
| Buyback Offer Size (Amount) | INR750 crore |
| Offer Type | Tender |
| Promoter Participation | Yes |
| Face Value | INR1 per share |
| Listing At | BSE, NSE |
Zydus Lifesciences Buyback Dates (Timeline)
| Board Meeting for Buyback Proposal | 20 May 2022 |
| Buyback Approval Date | 20 May 2022 |
| Public Announcement of Buyback | 24 May 2022 |
| Zydus Lifesciences Buyback Record Date | 2 June 2022 |
| Buyback Opening Date | 23 June 2022 |
| Buyback Closing Date | 6 July 2022 |
| Cut-off Date to receive completed tender forms by Registrar | 6 July 2022 |
| Verification Date by the Registrar | 13 July 2022 |
| Return of unaccepted shares by Registrar | 14 July 2022 |
| Extinguishment of accepted shares | 22 July 2022 |
Zydus Lifesciences Share Buyback 2022 Documents
Offer Letter
Draft Letter of Offer
Public Announcement
Upcoming Share Buyback
Zydus Lifesciences Share Buyback Entitlement Ratio
| Shareholder Category | Entitlement Ratio | Entitlement Ratio (in %) |
| Small Shareholders (less than INR2 Lakh on record date) | 26/503 | 5.17 |
| General category (for all other Eligible Shareholders) | 1/101 | 0.99 |
Small Shareholder is defined as shareholder who holds shares worth less than INR2,00,000 as on record date.
Zydus Lifesciences’ Financial Performance
| FY2020 | FY2021 | FY2022 | |
| Total Income | 634.7 | 779.0 | 798.2 |
| Total Expenses | 521.0 | 573.0 | 651.8 |
| Net income | 141.3 | 147.6 | 85.8 |
Calculation of Investment in Buyback
| Maximum market value of a share holder as on record date | INR2,00,000 |
| Buyback price | INR650 |
| Maximum shares for small shareholder (2,00,000/500) | 308 shares* |
| Closing price of stock as on 20 May 2022 | INR357.15** |
| Maximum amount invested in buyback (357.15 x 308 shares) | INR1,10,002 |
** For simplicity, we have considered price on buyback approval date
Profit Guidance from Zydus Lifesciences Buyback
| Shares Tendered | Buyback Entitlement | Acceptance | Buyback Profit | Profit in % |
| 308 | 16 | 16 (100%) | 4,686 | 3.10 |
| 308 | 16 | 32 (200%) | 9,371 | 6.19 |
| 308 | 16 | 48 (300%) | 14,057 | 9.29 |
Registrar of Zydus Lifesciences Stock Buyback 2022
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone:Â +91 22 4918 6200Â
Email:Â [email protected]
Website:Â www.linkintime.co.in
Manager of Zydus Lifesciences Share Buyback 2022
ICICI Securities Limited
ICICI Venture House,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai – 400025, Maharashtra
Phone: +91 22 6807 7100
Email: [email protected]
Website: www.icicisecurities.com
Necessity of the Buyback
- The buy-back gives an option to the equity shareholders to either participate in the buy-back and receive cash in lieu of Equity Shares accepted under the buy-back.
- The buy-back helps to return surplus cash to its shareholders, in proportion to their shareholding, thereby, enhancing the overall returns to shareholders.
- The buy-back would help in improving Earning per share (EPS), Return on asset (ROA) and Return on equity (ROE) ratios of the Company.
- The buy-back, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve a reservation for small shareholders as defined in the Buy-back Regulations.
Process to Participate in Zydus Lifesciences Share Buyback
All eligible Shareholders of the Company who own Physical Shares or Demat Shares on the Record Date may participate in the buyback offer through their Stock Broker. The eligible shareholder who holds the shares in Demat form must notify their broker of the details of the Equity shares that they wish to tender in the Buyback Offer.
The shareholder must transfer the tendered shares to the clearing corporation’s Special account. In turn, the broker would place a buyback order on the stock exchange.
The eligible shareholder who owns the shares in physical form must present their broker with the original share certificates and supporting documents. After document verification is complete, the broker places an order on the stock exchange and submits the original share certificate and TRS (Transaction Registration Slip) to the registrar.
Frequently Asked Questions
When does Zydus Lifesciences share buyback offer open?
Zydus Lifesciences share buyback opens on 23 June 2022 and closes on 6 July 2022.
Which type of buyback is Zydus Lifesciences buyback offer?
Zydus Lifesciences Buyback is a tender offer.
What is the Zydus Lifesciences stock buyback price?
Zydus Lifesciences stock buyback price is INR650 per share.
What is the Zydus Lifesciences stock buyback record date?
The record date is 2 June 2022.
