Natco Pharma announces ₹210 cr share buyback via open market; stock edges higher
1 min read . Updated: 08 Mar 2023, 12:10 PM IST
Premium- Shares of Natco Pharma were trading 0.47 per cent higher at ₹571.15 apiece on the NSE.
Hyderabad-based drug firm Natco Pharma on Wednesday announced a share buyback of ₹210 crore thorugh the open market route, for a price not exceeding ₹700 per equity share.
The buyback price is 23 per cent higher than the scrip closing price of ₹568.90 apiece on Monday.
The Hyderabad-based company plans to buy back 30 lakh shares, which is 1.64 per cent of the paid-up equity shares of the company.
“If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares bought back could exceed the indicative maximum buyback shares, but will always be subject to the maximum buyback size," it said.
Further, the buyback shall not exceed the maximum buyback size, which represents 5.13 per cent and 5.04 per cent of the aggregate of the total paid-up capital and free reserves of the company, according to a statement.
Under a share buyback or repurchase, a company buys back its own shares from investors or shareholders. It is seen as an alternative, tax-efficient way to return money to shareholders.
The company's board has constituted a buyback committee, comprising the Managing Director, Director & Chief Executive Officer, and Director & Executive Vice President (Corporate Engineering Services).
On Wednesday, shares of Natco Pharma were trading 0.47 per cent higher at ₹571.15 apiece on the NSE. The pharma stock has remained sideways to negative since July 2021. However, the shares have given some upside movement this year, delivering more than 7 per cent return in the last one month.