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Shares of Ajanta Pharma rallied 6% to 2,310 apiece on the BSE in Tuesday's session after the company announced that its board at its meeting held today has approved share buyback proposal. The board has fixed Friday, January 14, 2022 as the record date for the proposed buyback offer.

The board has approved Buy-back of up to 11,20,000 fully paid-up equity shares of face value of 2/- (representing 1.29% of the total number of Equity Shares of the Company) at a price of 2,550 per share payable in cash for a total consideration not exceeding 285.6 crore through the ‘Tender Offer’ route, the pharma company informed in an exchange filing today.

The total pay-out towards buyback of shares will be not exceeding Rs. 356 crores (equity shares buyback consideration not exceeding Rs. 286 crores + buyback tax not exceeding Rs. 70 crores) on a proportionate basis through the tender offer process, it added.

This buyback represents 1.29% of the total number of equity shares of the company and 9.89% 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.

Last week, the company had said that it will hold a board meeting on 28 December to consider a proposal for buyback of equity shares. 

Ajanta Pharma is a speciality pharmaceutical formulation company having branded generic business in India and emerging markets, generic business in US and institution business in Africa.

For the quarter ended September 30, 2021, the company posted a 15% rise in consolidated net profit at 196 crore as compared to 170 crore in July-September period a year ago. Its revenue from operations rose to 885 crore in the second quarter as compared with 716 crore in the year-ago period.

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