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Zydus Lifesciences gets board nod for ₹750-cr share buyback 

BL Ahmedabad Bureau | | Updated on: May 20, 2022

Company will buy back 1.13% of total equity shares at a price of ₹650/share

The Board of Directors of Zydus Lifesciences Limited has granted approval for a share buyback offer for an aggregate amount upto ₹750 crore for its 1.13 per cent of total paid-up equity shares at a price of ₹650 per share. The buyback price works out to about 90 per cent premium to the closing price of May 19, 2022.

The Board has granted its approval for the share buyback of not exceeding 1,15,38,461 fully paid-up equity shares each having face value of ₹1.

"The buyback is proposed to be made from all of the equity shareholders/ beneficial owners of the company, including the promoters of the company, who hold equity shares as of the record date, on a proportionate basis through the “tender offer” route as prescribed under the buyback regulations," the company informed.

Entitlement

The company has fixed June 2, 2022 as the record date for the purpose of determining the entitlement of being eligible to participate in the buyback. The promoter group and persons in control of the company have expressed their intentions to participate in the buyback and tender equity shares based on their entitlement. However, the promoters have agreed to offer such number of additional equity shares to ensure that post the buyback the company continues to be in compliance with the minimum public shareholding norms.

In the pre-buyback shareholding as on May 13, promoters and promoter group hold 74.88 per cent stake in the company, while individual investors collectively hold about 7.9 per cent, followed by insurance companies at 6.9 per cent and mutual funds at 5.39 per cent and foreign portfolio investors (FPIs) at 2.56 per cent among others.

The Board of Directors on Friday also approved the financial results for the quarter and the fiscal 2021-22 and recommended final dividend of ₹2.50 (or 250 per cent) per equity share of ₹1 each.

Net profit

On consolidated basis, Zydus Lifesciences Limited posted a net profit of ₹397 crore, against the net profit of ₹679 crore in the same quarter last year. The consolidated revenues from operations for the quarter stood at ₹3,864 crore (₹3,670 crore y-o-y).

For the full year, company recorded consolidated net profit of ₹4,487 crore (₹2,134 crore) on revenues from operations at ₹15,265 crore (₹14,403 crore y-o-y). The consolidated reported EBITDA for the year was ₹3,340 crore with EBITDA margin at 21.9 per cent.

Net Debt-to-Equity ratio at the end of fiscal 2022 was nil, while Net Debt-to-EBITDA stood at (-)0.02x at the end of March, 2022. Net Cash (negative Net Debt) as on March 31, 2022 was ₹57 crore, the company informed in a statement.

Commenting on the results, Sharvil Patel, Managing Director, Zydus Lifesciences Limited, said, "Our key businesses performed well, aided by agile supply chain which helped sustain profitability. Progress on our innovation efforts to build robust pipeline for the future has been on track. We remain committed to our pipeline execution to drive sustainable growth."

Published on May 20, 2022
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