Drugmaker Ajanta Pharma’s board of directors has approved a ₹315 crore share buyback proposal of the company.
The company has proposed buyback, through the tender offer process, of 22,10,500 equity shares of face value of ₹2 each at a price of ₹1,425 per share. It said the total pay-out towards the buyback will not be more than Rs.389 crore, including the buyback tax of upto ₹74 crore.
The buyback represents 2.59% of the total equity shares of the speciality pharmaceutical formulation company and 9.93% of the paid-up share capital. The price set by Ajanta Pharma, for the buyback, is more than 18% compared to ₹1201.30 each at which the shares were trading around 1 p.m. on the BSE.
Stock exchange shows the 52-week high of the share is ₹1,425.80, achieved on September 9. The company has set March 24 as the record date to determine the entitlement and names of the shareholders, eligible to participate in the proposed buyback. Ajanta Pharma has branded generic business in India and emerging markets, generic business in U.S. and institution business in Africa.