Indiamart Intermesh Buyback 2023 vs Piramal Enterprises Buyback 2023

The Buyback is being undertaken for the following reasons:

• Taking into account the operational and strategic cash requirements of the Company in the medium term (including investment in growth plans and associated capital expenditure) and cash reserves, the Company considers appropriate to return surplus funds to the shareholders in an effective and efficient manner. Further, the Buyback will promote capital efficiency and thereby increasing shareholders' value and improving return on equity.
• The Buyback gives an option to the Eligible Shareholders (as defined below) to either (A) participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or (B) not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, 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.