Natco Pharma Limited CC-Sep23.pdf · 2023-11-15
Thank you, Mr. Rajiv. I really admire your stewardship of this company. And I'm very proud to be a very long-term shareholder. Just two points I wanted your view. One relates to buyback and one relates to dividend. Now, the last buyback was on the market method. So, long-term shareholders didn't really benefit out of it. Though the equity capital came down, so our holding became more powerful. But the tender method would have been much more beneficial for long- term shareholders. Because A, you get the money. B, it is tax-free. And C, it is very equitable. So, considering that you earn 7% to 8% on your INR1,600 crores. And considering that you might not need that entire amount for a potential acquisition. So, in case you are considering any future buybacks, particularly if you can time it with respect to this Q3 seasonality, so that people who are not really believing the company can, of course, pay the price. Now, the tender method of buyback, I feel, could be considered. Many progressive companies are doing that, including Infosys. And recently, Granules did it. So, it's like a form of dividend, but it helps us, number one. And there is a time limit that is now over for you to consider the next buyback. But I leave it to your better judgment. And the second point is on dividends. Now, I understand that we want to, at some point, even out this seasonality thing. But you see the way we pay out dividends. We pay much less dividends for Q2 and even less for Q3 and very high for Q1. Because that's where your good revenues come in. Now, one way would be, just my thought, is to, as a measure of establishing our intent towards removing the seasonality, to look at the dividend in a more equitable or equalized manner. Because otherwise, what happens is today, many in the market think that nothing, a positive shock is not going to come for the next three months. So, people trade in and out. Whereas very long-term shareholders like us, we bear the pain and we hope for a better tomorrow. But we also bear this pain because of the seasonality thing. So, these are my two thoughts. And I once again want to put on record my admiration for your integrity and the way you have handled this entire piece. Hats off to you. Thank you very much.
Thank you.