Gujarat Narmada Valley Fertilizers & Chemicals Limited Buyback (Gujarat Narmada Valley Fertilizers Buyback 2023) Detail

Last date to be eligible to participate in buyback is November 23, 2023.

The Gujarat Narmada Valley Fertilizers Buyback 2023 is a Tender Offer.

The Gujarat Narmada Valley Fertilizers Buyback 2023 is being offered at Rs ₹770 per share per equity share.

The record date for the Gujarat Narmada Valley Fertilizers Buyback 2023 is November 24, 2023.

The issue size of Gujarat Narmada Valley Fertilizers Buyback 2023 is of 8,478,100 equity shares at ₹770 per share aggregating upto ₹652.81 Crores.

The company is proposing the buyback to return surplus funds to the equity shareholder/beneficial owner of the Equity Shares as on the record date (Eligible shareholder) which are over and above its ordinary capital requirement and in excess of any current investment plans, in an expedient, efficient and cost-effective manner. Additionally, the company strives to increase the Shareholder's value and the buyback would result in the following benefits amongst other things:-

• The buyback will improve the financial ratios like Earning per share, return on capital employed, and return on equity by a reduction in the equity base of the company, thereby leading to a long-term increase in shareholder's value
• The buyback will help in achieving an optimal capital structure.
• The buyback will help the company distribute the surplus cash to its equity shareholders, thereby enhancing the overall return to equity shareholder.
• The buyback which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations would involve allocation of the number of equity shares as per the right entitlement of the shareholder or 15% of the number of Equity Share to be bought back whichever is higher, reserved for small shareholders.
• The buyback gives an option to the eligible shareholder to either (i) choose to participate and get cash in lieu of Equity Shares to be accepted under the buyback or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post buyback without additional investment.

Letter of Offer

All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.

The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.

The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.

The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.

The Gujarat Narmada Valley Fertilizers Buyback 2023 offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.