Aurobindo Pharma Buyback 2024 vs KDDL Buyback 2024

The Buy-Back is being undertaken, inter-alia, for the following reasons:

1. The buy-back will help the company reward its shareholders and enhance the overall return to shareholders.
2. The buy-back is expected to improve earnings per share and other key ratios such as return on net worth and return on assets over a period of time;
3. The buy-back is being implemented through the tender offer route as prescribed under the buyback regulations and would involve the allocation of the number of equity shares as per their entitlement or 15% of the number of equity shares to be bought back, whichever is higher, reserved for small shareholders.

The Buyback is being undertaken for the following reasons:

1. The Buyback will help the Company to return surplus cash to its members;
2. The Buyback is generally expected to improve return on equity through the distribution of cash and improve earnings per share by the reduction in the equity base, thereby leading to a long-term increase in members’ value; and
3. The Buyback gives an option to the members 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 in the Company post the Buyback, without additional investment.