Shares of drug maker rose as much as 7.23 per cent to hit an intraday high of Rs 2,338 on the BSE after its board of directors approved share buyback proposal. Ajanta Pharma's board approved share buyback plan worth Rs 286 crore and the company will buy back shares at Rs 2,550 per share.
As per the regulatory filing, Ajanta Pharma will buy 11.20 lakh equity shares of the company of face value of Rs 2 each. The total pay-out towards buyback of shares will be not exceeding Rs 356 crore, including a share buyback consideration not exceeding Rs 286 crore and tax not exceeding Rs 70 crore, on a proportionate basis through the tender offer process, it added.
"This buyback represents 1.29 per cent of the total number of equity shares of the company and 9.89 per cent of the paid-up share capital and free reserves of the company as per the audited financial statements for the financial year ended on March 31, 2021," the drug firm stated.
The Record date for the same has been fixed as January 14, 2022, it added.
Ajanta Pharma's share buyback proposal is at a 17 per cent premium to its Monday's closing price of Rs 2,180, data from BSE showed.
Mumbai-based Ajanta Pharma is a speciality pharmaceutical formulation company having presence in domestic and various international markets.