Freshtrop Fruits Limited is engaged in the business of supplying grapes and pomegranates from India to supermarkets in Europe.
The company has identified the following operating segments as reportable segments:
1. Fresh fruit
2. Food processing
Freshtrop is a leading and consistent supplier of grapes and pomegranates from India to supermarkets in Europe, and Russia. The company has also set up a food processing plant in Nasik for the production of fruit pulp such as mango and guava pulp, tomato paste, etc.
Freshtrop Fruits Buyback 2024 Detail
| Issue Period | April 8, 2024 – April 16, 2024 |
| Security Name | Freshtrop Fruits Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 1,925,000 (19.45 % of Total number of equity Shares) |
| Issue Size (Amount) | ₹33.69 Crores |
| Buyback Price | ₹175 per share |
| Face Value | ₹10 per share |
| Listing At | BSE |
Freshtrop Fruits Buyback 2024 Issue Timetable
| Last Date to buy shares | April 1, 2024 |
| Record Date | April 2, 2024 |
| Offer Opens On | April 8, 2024 |
| Last Date for receipt of Tender Forms | April 16, 2024 |
| Offer Closes On * | April 16, 2024 |
| Finalisation of Buyback Acceptance | April 23, 2024 |
| Last Date for settlment of bids | April 24, 2024 |
| Last Date for Extinguishment of Shares | May 6, 2024 |
* Last Date to Tender shares on Zerodha : April 15, 2024
Buyback Ratio
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 25 Equity Shares out of every 84 Fully paid-up Equity Shares held on the Record Date. | 288,750.00 |
| General Category for all other Eligible Shareholders | 11 Equity Shares out of every 60 Fully paid-up Equity Shares held on the Record Date. | 1,636,250.00 |
Company Financials
Freshtrop Fruits Limited Financial Information (Restated)
Freshtrop Fruits Limited’s revenue increased by 68.7% and profit after tax (PAT) rose by 15.05% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Revenue | 69.87 | 107.89 | 63.95 | 44.80 |
| Profit After Tax | 60.16 | 8.46 | 7.36 | 9.49 |
| Net Worth | 139.43 | 79.36 | 81.14 | 76.28 |
| Reserves and Surplus | 129.53 | 69.47 | 70.45 | 65.35 |
| Total Borrowing | 21.15 | 24.01 | 30.96 | |
| Amount in ₹ Crore | ||||
Stock price at BSE (in preceding 3 months)
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Mar-2024 | 165.20 | 156.45 | 160.68 |
| Feb-2024 | 172.90 | 155.70 | 162.20 |
| Jan-2024 | 182.85 | 142.90 | 162.64 |
Necessity of the Issue
The current Buyback is in line with the Company’s shareholder-friendly capital allocation practices of returning excess cash to shareholders, thereby increasing shareholders’ value in the longer term, and improving the Return on Equity. The Buy-back is being undertaken by the Company to enhance shareholders’ value and improve financial ratios. Additionally, the Buy-back is being undertaken for the following reasons:
- The Buy-back will help the Company to distribute surplus funds to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders;
- The Buy-back, which is being implemented through the Tender Offer as prescribed under the Buyback Regulations, would involve a reservation of number of Equity Shares as per their entitlement or 15% of the Buy-back Size to be bought back whichever is higher, 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” as defined under Regulation 2(i)(n) of the Buy-back Regulations;
- The Buy-back will help in improving financial ratios like earnings per share, return on assets and return on equity calculated on the basis of financial statements, by reducing the equity base of the Company; and
- The Buy-back gives an option to the Eligible Shareholders to either choose to participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buy-back or choose not to participate in the Buy-back and get a resultant increase in their percentage shareholding in the Company post Buy-back, without additional investment.
Company Contact Information
Freshtrop Fruits Limited
A – 603, Shapath 1V,
S. G. Road,
Ahmedabad – 380 015
Phone: +91-79-40307050 – 59
Email: info@freshtrop.com
Website: http://www.freshtrop.com/