Drugmaker Ajanta Pharma announced that its board of directors has approved a share buyback proposal worth Rs 315 crore, comprising 2.59 percent of total equity shares.
The buyback price set by Ajanta Pharma is Rs 1,425 a unit, which is about 15 percent higher compared to Rs 1213.25 each at which the shares were trading around 1420 hours on the BSE.
“The board of directors of the company, at its meeting held today has considered and approved buyback of 22,10,500 fully paid-up equity shares of face value of Rs 2 each by the company, representing 2.59% of the total number of equity shares of the company as of March 31, 2022, at a price of Rs 1,425 per equity share payable in cash for a total consideration not exceeding Rs 315 crore,” the company said in a filing.
As of March 3, 2023, promoters and promoter group held 66.1 percent stake in the company and FIIs owned 10.3 percent. Another 13.7 percent stake is controlled by financial institutions, mutual funds and banks. Public shareholding in the company stands at 9.86 percent.
“The total payout towards buyback of shares will not be exceeding Rs 389 crore (equity shares buyback consideration not exceeding Rs 315 crores + buyback tax not exceeding Rs 74 crore) on a proportionate basis through the tender offer process,” the company said.
This will be company’s third buyback in last three years. The first buyback was executed in November 2020 and the second one in January 2022.
Ajanta Pharma is a speciality pharmaceutical formulation company running branded generic business in India and emerging markets, generic business in the US.
On Friday, after the buyback announcement, its shares fell and were trading 1.23 percent lower at Rs 1,213.25 apiece on the BSE.
