Ajanta Pharma announces Rs 315-crore share buyback; stock falls

Ajanta Pharma share buyback 2023: Pharmaceutical company Ajanta Pharma's board on Friday announced a share buyback programme for its investors. The board fixed the buyback price at Rs 1,425 per share, according to an exchange filing.

The buyback price is at a premium of 16 per cent over the closing price of Ajanta Pharma shares the previous day. 

The Ajanta Pharma share buyback, worth up to Rs 315 crore, will be implemented through a tender offer route, the drug maker said. 

"The Board of Directors of the Company, at its meeting held today, i.e., March 10, 2023, has inter-alia considered and approved Buyback of 22,10,500 fully paid-up Equity Shares of face value of ₹ 2/- each," the filing said. 

ALSO READ: Stricter SEBI rules for share buyback via stock exchange route come into force | Watch

The share buyback back represents 2.59 per cent of the total equity of the company. It is the company's third share buyback.

Earlier, the company bought back its shares first in November 2020, and then in January 2022.

The Ajanta Pharma stock declined by as much as Rs 17.7 or 1.4 per cent to Rs 1,211 apiece on BSE amid market-wide weakness after the buyback announcement.  

ALSO READ: Four brokerages cut Cipla target price in two days — what's worrying analysts

Ajanta Pharma share price history

Ajanta Pharma shares have risen four per cent in the last one year, a period in which the Nifty50 headline index has risen 4.9 per cent. 

Click Here For Latest Updates On Stock Market | Zee Business Live