Natco Pharma announces Rs 210 crore share buyback; stock rises
Natco Pharma shares buyback: Drugmaker through an exchange filing said that it plans to buy back 30 lakh shares which is 1.64 per cent of the paid-up equity shares of the company.
Natco Pharma shares buyback: Natco Pharma – a Hyderabad-based small-cap pharma company – on Wednesday announced a share buyback plan of Rs 210 crore through an open market route with a price not exceeding Rs 700 per equity share.
Immediate after the buyback announcement, the intraday chart of Natco Pharma showed a sharp spike as the stock on Wednesday gained as much as Rs 580 per share, up 2.5 per cent from Monday’s close. The Indian equity markets were shut on Tuesday, on account of the Holi festival.
The buyback price is set at a premium of 23 per cent to the counter’s previous day's closing price of Rs 566 per share on the BSE. At around 12:35 PM today, Natco Pharma shares quoted Rs 571.50 per share, up Rs 5.35 or 0.94 per cent on the BSE.
Drugmaker through an exchange filing said that it plans to buy back 30 lakh shares which is 1.64 per cent of the paid-up equity shares of the company.
According to Natco Pharma, “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.”
Also Read: Pharma stocks a mixed bag as drug regulator NPPA fixes retail price of 74 drug formulations
It further added that 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.
The company has also constituted a buyback committee, which includes the Managing Director VC Nannapaneni; Director & Chief Executive Officer Rajeev Nannapaneni, and Director & Executive Vice President (Corporate Engineering Services) PSRK Prasad.
Also Read: As Cipla shares tanks 5%, check why pharma stocks are seeing a declining trend
When a company buys its own outstanding shares to reduce the number of shares available on the open market can be termed a buyback, which is also known as a share repurchase.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Small SIP, Big Impact: Rs 1,111 monthly SIP for 40 years, Rs 11,111 for 20 years or Rs 22,222 for 10 years, which do you think works best?
SCSS vs FD: Which guaranteed return scheme will give you more quarterly income on Rs 20,00,000 investment?
Power of Compounding: How long it will take to build Rs 5 crore corpus with Rs 5,000, Rs 10,000 and Rs 15,000 monthly investments?
Looking for short term investment ideas? Analysts suggest buying these 2 stocks for potential gain; check targets
02:49 PM IST