Aarti Drugs share raised almost 10% on buyback approvals worth Rs. 60 crores:
Aarti Drugs: It is one of the largest pharmaceutical manufacturing companies in India located in Mumbai. However, the company provides services in Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, and Specialty Chemicals across India. The company works under the subsidiary of Aarti Group. The present Chairman & Managing Director (MD) of the company is Prakash M. Patil.
Meanwhile, on Friday, March 19th, the shares of the pharmaceutical company surged almost 10% in the stock market. The main reason for this the company decided to buyback of equity shares from the shareholder’s worth Rs. 60 crores via the open market.
Moreover, the company’s board meeting held on Friday approved the buyback of almost 6,00,000 fully-paid equity share with a face value of Rs. 10 each. The company acquiring almost 0.64% stakes at a price value of Rs. 1,000 equity share aggregating to Rs. 60 crores, said the company in the exchange filing.
Whereas the buyback will be done via a tender offer to the equity shareholders and beneficiaries of the company who holds equity shares on the record date. The board members decided the record date for the proposed buyback on April 1st, 2020.
On the other side, the buyback issue of the company to pay a fixed value per share, which is higher than the open market. It also refers to the repurchasing of free-float shares of the company by the promoters. Normally, buybacks can be done for various reasons like ownership consolidation plan, undervalued price of the share, and boosting its financial ratios of the company.
Whereas the share touched its 52-week high at Rs. 1,025 on October 8th, 2020, and a 52-week low at Rs. 105.56 on March 19th, 2020 respectively. Currently, the stock trading with (TTM) EPS of Rs. 28.33 for 12 months. While the price-to-earnings (P/E) ratio at Rs. 26.96. The book value of the company stood at Rs. 66.72 per share.
However, the shares of Aarti Drugs Limited reported a bullish trend in the stock market on Friday. It gained 61.70 points with a 9.03% increase and reached 745.00 INR. While in BSE, the company gained 66.30 points with a 9.71% increase and reached 749.40 INR.
Stock Market on March 19th:
On Friday, both Sensex and Nifty re-gained their bullish trend after bearish reports in the last five sessions of the stock market. The Sensex is trading above 49,800 levels and nifty trading above 14,700 levels in the stock market. The Sensex gained 641.72 points with a 1.30% increase and reached 49,858.24 levels. While the nifty gained 186.15 points with a 1.28% increase and reached 14,744.00 levels.
On the other side, the number of coronavirus cases in India on Saturday, March 20th reached 1,15,55,284 with almost 1,59,558 deaths.
In the border markets, the S&P BSE SmallCap index reported a bullish trend in the stock market on Friday. It gained 84.38 points with a 0.41% increase and reached 20,470.54 levels. But, the S&P BSE MidCap gained 267.79 points with a 1.35% increase and reached a 20,044.50 level. While the Nifty Bank gained 304.80 points with a 0.90% increase and reached 34,161.60 level.
Top Gainers on March 20th: NTPC, HUL, Power Grid Corporation, JSW Steel, and UPL are the top gainers in today’s stock market.
Top Losers on March 20th: Larsen & Toubro, Tech Mahindra, Coal India, Bajaj Auto, and Titan Company are the top losers in today’s stock market.