Ajanta Pharma Gains 4% After Board Approves Rs 286-Crore Share Buyback Plan

Shares of Ajanta Pharma gained around four per cent on Tuesday, December 28, after its board approved a share buyback plan of up to Rs 286-crore, wherein the drug maker will buy back shares at a maximum price of Rs 2,550 apiece. 

Ajanta Pharma shares opened on the BSE at Rs 2,181, swinging to an intra day high of Rs 2,338.10 and an intra day low of Rs 2,161, throughout the trading session today.

''The company's board has approved buyback of up to 11,20,000 fully paid-up shares of face value of Rs 2 each at a price of Rs 2,550 per share payable in cash,'' said Ajanta Pharma in a regulatory filing to the stock exchanges today.

The total pay-out towards buyback of shares will not exceed 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, according to the statement.

"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," added the Mumbai-based company.

The record date for the same has been fixed as January 14, 2022. Ajanta Pharma is a speciality pharmaceutical formulation company with presence in domestic and various international markets. On the NSE, shares of Ajanta Pharma opened on the BSE at Rs 2,197.05, registering an intra day high of Rs 2,340 and an intra day low of Rs 2,175, throughout the session today.

On Tuesday, December 28, shares of Ajanta Pharma settled 3.83 per cent higher at Rs 2,263.90 apiece on the BSE.