Jagsonpal Pharmaceuticals Limited has launched a buyback offer for up to 16,00,000 fully paid-up equity shares of face value ₹2 each at ₹250 per share, aggregating to ₹40,00,00,000 (Rupees Forty Crores only), excluding transaction costs. The Board of Directors approved the proposal on March 12, 2026, and shareholders approved it through postal ballot, with results declared on April 27, 2026. The Letter of Offer dated May 06, 2026 has been dispatched to eligible shareholders holding equity shares as on the record date of May 04, 2026.

Buyback Schedule and Key Dates

The buyback is being executed through the tender offer route on a proportionate basis via the stock exchange mechanism, with BSE designated as the stock exchange for the buyback. The following table summarises the key activity schedule:

Buyback Details and Entitlement

The buyback represents 2.38% of the total number of equity shares in the paid-up share capital as on the record date, and 18.35% of the aggregate of fully paid-up equity share capital and free reserves as per the audited financial statements for the year ended March 31, 2025. The buyback size is within the statutory limit of 25% prescribed under Section 68(2)(c) of the Companies Act and Regulation 4 of the Buyback Regulations.

Eligible shareholders are divided into two categories — the Reserved Category for Small Shareholders and the General Category for all other eligible shareholders. A small shareholder is defined as one holding equity shares of market value not more than ₹2,00,000 on the basis of closing price on the record date. As on the record date, the closing price on NSE was ₹212.87 per equity share; accordingly, all eligible shareholders holding not more than 939 equity shares are classified as small shareholders. The buyback entitlement ratio for both categories is as follows:

The actual buyback entitlement factor for small shareholders under the Reserved Category is 7.37977828968604% and for other shareholders under the General Category is 7.37974949279410%. A total of 2,40,975 equity shares have been reserved for the Reserved Category, with the remaining 13,59,025 equity shares forming the General Category.

Shareholding and Promoter Participation

The promoters and promoter group, holding 67.71% (4,54,58,210 equity shares) of the total equity shares as on the record date, have confirmed they will not participate in the buyback. Assuming full acceptance from all eligible shareholders up to their entitlement, the aggregate promoter and promoter group shareholding is expected to increase to 69.36% post-buyback, while public shareholding would decrease to 30.64% from 32.29%. The buyback will not result in any change in control or management structure of the company.

The following table presents the salient financial parameters consequent to the buyback, based on the audited financial statements for the year ended March 31, 2026:

Financial Position and Funding

The funds for the buyback will be sourced from the company's free reserves, securities premium account, and internal accruals. Jagsonpal Pharmaceuticals is a debt-free entity. The company has generated over ₹197 crores in free cash (before taxes, dividends, and acquisitions) during the period from Financial Year 2023 to Financial Year 2025, of which ₹26 crores were distributed as dividends, ₹94 crores were deployed toward acquisitions, and the remaining ₹77 crores were retained for future growth. As of March 31, 2026, the company reported free cash of ₹191 crores, including ₹45 crores generated during the period from April 1, 2025 to March 31, 2026. In accordance with the Buyback Regulations, the company has deposited ₹10,00,00,000 (Rupees Ten Crores Only), representing 25% of the buyback offer size, in a cash escrow account with ICICI Bank Limited on April 30, 2026.

The buyback is expected to improve return on equity by reducing the equity base, enhance earnings per share, and lead to approximately 400 basis points improvement in Return on Capital Employed (ROCE). The total paid-up share capital of the company as on the record date is ₹13,42,78,300, consisting of 6,71,39,150 equity shares of ₹2 each. Post-buyback (assuming full acceptance), the paid-up capital will reduce to ₹13,10,78,300, consisting of 6,55,39,150 equity shares.

Key Financial Performance

The company's financial results for the last three financial years, as extracted from audited standalone financial statements, are presented below:

Key Appointments and Intermediaries

Centrum Broking Limited (as successor to the Merchant Banking Business of Centrum Capital Limited) has been appointed as Manager to the Buyback, and MCS Share Transfer Agent Limited has been appointed as Registrar to the Buyback. A Buyback Committee comprising Mr. Debasis Nandy, Mr. Manish Gupta, and Mr. Prithipal Singh Kochhar has been constituted to oversee implementation. Mr. Pratham Rawal, Company Secretary, has been designated as the Compliance Officer for the buyback. Eligible shareholders with queries may contact the Registrar, MCS Share Transfer Agent Limited, at 179-180, 3rd Floor DSIDC Shed, Okhla Industrial Area, Phase-I, New Delhi, Delhi – 110020, or the Compliance Officer at the company's corporate office in Gurugram.

Source: None/Company/INE048B01035/84ffda18ffc546ca.pdf

Jagsonpal Pharmaceuticals Limited has announced its audited financial results for the quarter and financial year ended March 31, 2026, alongside the earnings conference call transcript for Q4 FY26 held on April 28, 2026. The company declared an impressive 200% dividend, demonstrating strong commitment to shareholder wealth creation, complemented by a share buyback program.

Strong Financial Performance Across Key Metrics

The pharmaceutical company reported robust growth across all major financial parameters for FY26. The performance highlights showcase the company's operational strength and market positioning.

For the full year FY26, revenue grew to INR287 crores, operating EBITDA stood at close to INR61 crores with a margin of approximately 21%, and profits from operations reached INR45 crores. In Q4 FY26, revenue grew to INR64 crores, EBITDA to INR11 crores, and PAT to INR9 crores with a PAT margin expanding to approximately 14%.

Shareholder Returns: Dividend and Buyback

The board has recommended a 200% dividend for the year, which includes a one-time special dividend of 75%. This will result in a total payout of INR4 per share and an overall cash distribution of approximately INR26 crores. Additionally, the company announced an INR40 crores buyback of up to 16 lakh equity shares at INR250 per share, with no promoter participation. Shareholder approval for the buyback was received on April 27, 2026, while the enhanced dividend is subject to shareholder approval at the forthcoming AGM.

Between buyback and dividend, the company shall be returning over INR66 crores to shareholders. The buyback is expected to improve ROE from approximately 16% to 18% and ROCE from approximately 22% to close to 26%. The record date for the buyback is May 04, 2026.

Operational Performance and Market Outperformance

On a MAT basis, the company delivered 12.2% growth as per Pharmarack, outperforming the market by 3.6%. This momentum accelerated in Q4, where growth reached 14.2% against industry growth of 10.5%. The company's top 10 brands constitute approximately 58% to 60% of total sales, with nine out of these top 10 brands ranked within the top five in their respective categories. Growth has been led by strong traction across Gynaecology and Dermatology therapies.

Financial Discipline and Balance Sheet Strength

The company maintains a strong balance sheet with a cash position of over INR190 crores as of March 31, 2026. Working capital remains well-managed with a net working capital cycle at close to 11 days. The company continues to scout for strategic inorganic initiatives while maintaining disciplined capital allocation focused on value creation and efficient cash deployment.

Corporate Information and Market Presence

Jagsonpal Pharmaceuticals operates from its corporate office in Gurugram, Haryana, and maintains its registered office in New Delhi. The company trades on both major Indian stock exchanges - BSE (Scrip Code: 507789) and NSE (Symbol: JAGSNPHARM). The company also runs the "My Sakhi" CSR initiative, demonstrating its commitment to social responsibility alongside business growth. Looking ahead, management has provided guidance to grow at 1.5x of the Indian Pharma Market growth, targeting between 12% to 15% growth.