Drug maker Natco Pharma will buy-back ₹250 crore worth shares at a price not exceeding ₹1,000 a piece.
The company’s board on Monday approved a proposal to buy-back equity shares (face value of ₹2 each) at a price not exceeding ₹1,000 per share for an aggregate amount of ₹250 crore from the open market through the stock exchange mechanism, Natco Pharma said in a regulatory filing.
The maximum buy-back price of ₹1,000 per share is at a more than 28% premium to Monday’s closing price of ₹779.70 per share.
The maximum buy-back size, of ₹250 crore, represents 8.10% and 8.22% of the aggregate of the total paid-up equity capital and free reserves respectively as on March 31.
The promoters and promoter group hold 48.25% of the existing equity, while others, including public (17.85%) and institutional investors, hold the remaining 51.75%.
Post the buy-back, assuming the full acceptance of the buy-back size at the maximum buy-back price, the promoter holding will increase to 48.91%, while that of others would come down to 51.09%. Public announcement setting out the process, timelines and other requisite details would be released in due course in accordance with the buy-back regulations, Natco Pharma said.
For the quarter ended September, the Hyderabad-headquartered has posted a consolidated profit after tax of ₹181.6 crore or 115% higher compared to the ₹84.4 crore registered in the year earlier period.
Q2 revenue rises 35%
Total revenue stood at ₹583.50 crore, an increase of 35% from the ₹432.20 crore for the same period last year.
A statement said that the company, during the quarter, had witnessed growth in the formulations business — both domestic and exports.
