Aarti Drugs Buyback 2024 vs Indian Toners & Developers Buyback 2024

The Company is proposing the Buyback to service the equity more efficiently. Additionally, the Company’s management strives to increase equity shareholder's value and the Buyback would result in amongst other things:

1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;
2. The Buyback is generally expected to improve return on equity through the distribution of cash and improve earnings per share by a reduction in the equity base, thereby leading to a long-term increase in shareholders’ value;
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; and
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 be classified as Small Shareholders.

The Buyback is being undertaken for the following reasons:

1. The buyback will help the company return surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding.
2. The buyback consists of up to 15% reservation for the small shareholder. The company believes that this reservation for small shareholders would benefit many public shareholders who would be classified as "small shareholders".
3. The buyback may help in improving financial ratios like return on equity, by reduction in the equity base, thereby leading to a long-term increase in shareholders' value.
4. 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 or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer.