CL Educate Buyback 2023 vs Piramal Enterprises Buyback 2023

The Buyback is being undertaken for the following reasons

(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;

(ii) The Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to an increase in shareholders' value; and

(iii) The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.

The Buy Back is being proposed by the Company to fulfill the following objectives:

1. The Buyback will help the company to return surplus cash to its shareholders holding Equity Shares.
2. The buyback will help the company improve its capital structure by optimizing debt to equity ratio. It would also help in improving financial ratios such as EOS and ROE.
3. The Buyback gives an option to the shareholders holding Equity Shares of the company, either to sell their Equity Shares and receive cash or not to sell their Equity Shares and get a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
4. The Buyback, which is being implemented through the tender offer as prescribed under the Buyback Regulations, would involve a minimum reservation of 15% for Small Shareholders and allocation of a higher number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the Small Shareholders. The Company believes that this reservation for Small Shareholders would benefit a large number of public shareholders, who would get classified as Small Shareholders.