BackSun Pharma buyback offer to open on 22 September
The buyback aims to return surplus funds to shareholders and enhance overall returns for them, said Sun Pharma
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Hyderabad: India’s largest drug maker Sun Pharmaceutical Industries Ltd on Wednesday said its buyback offer of 75 lakh equity shares will open on 22 September.
The issue will close on 5 October.
“The buyback offer not exceeding 75 lakh fully paid-up equity shares of face value of ₹ 1 each at a price of ₹ 900 per share on a proportionate basis through the tender offer process using stock exchange mechanism" will be available, the company said in a filing to the stock exchanges.
The company said it received final observations from capital markets regulator Securities and Exchange Board of India (Sebi) on 7 September on the draft letter of offer for the buyback dated 4 July.
Sun Pharma said it is going to spend up to ₹ 675 crore for the buyback, which represents 3.79% of the paid-up equity share capital and free reserves (including securities premium account) as on 31 March.
Sun Pharma’s board gave its nod for the buyback in June.
Sun Pharma said the buyback aims to return surplus funds to shareholders and enhance overall returns for them.
The promoters have indicated their intention to participate in the proposed buyback in such a manner that their aggregate shareholding percentage in the company will not fall below their current aggregate percentage shareholding, the company said.
“Assuming response to the buyback is 100% from all the eligible sellers, the aggregate shareholding of promoter and persons in control post the buyback may increase to 55% from 54.97% prior to the buyback," the company said.
Shares of Sun Pharma dropped 1.02% and were trading at ₹ 778.90 on the BSE at 11.50am, while the benchmark Sensex index was trading lower 0.17% at 28,305.71 points.
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