Pharma stock declares ₹702 share buyback at a premium of 13%

With a market cap of ₹283.39 crore, Jenburkt Pharmaceuticals Ltd. is a small-cap business that operates in the pharmaceutical industry. Jenburkt Pharmaceuticals Ltd., a pharmaceutical company with its headquarters in Mumbai, India, is present in 13 different nations. The company's Board of Directors has approved a proposal to buyback up to 165242 fully paid-up equity shares with a face value of INR 10 each for ₹702 each. Taking into account the stock's closing price today, the buyback price implies a premium of 13.68%. The maximum buyback size is ₹11.60 Cr.

The company has said in a stock exchange filing that “The Board of Directors of Jenburkt Pharmaceuticals Limited (the “Company”) at its meeting held on 01st December, 2022 has approved a proposal to buyback by the Company of up to 165242 fully paid-up equity shares of face value of INR10/- (Indian Rupees Ten only) each (“Equity Shares”) at a price not exceeding INR 702/- (Indian Rupees Seven Hundred Two only) per Equity Share (the “Maximum Buyback Price”) payable in cash for an aggregate amount not exceeding INR 11,60,00,000/- (Rupees Eleven Crore Sixty Lac only) (the “Maximum Buy-back Size”), from the shareholders of the Company excluding promoters, promoter group and persons who are in control of the Company, via the “Open Market” route through the stock exchanges mechanism, i.e., using the electronic trading facilities of the stock exchanges where the Equity Shares of the Company are listed (.e., BSE Limited), in accordance with the provisions under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (“Buyback Regulations”) and the Companies Act, 2013 (including the rules and regulations framed thereunder), as amended, and other applicable provisions (the process hereinafter referred to as the “Buyback”).”

The Board of Directors also informed to the stock exchanges by saying that “At the Maximum Buyback Price and for the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 165242 (“Maximum Buyback Shares”) which is 3.60 % of the total number of paid-up Equity Shares of the Company. Further, the Buyback shall not exceed the Maximum Buyback Size, which represents 9.96% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone financial statements of the Company as on March 31, 2022 and is within the statutory limit of 10% of the aggregate of the fully paid-up equity share capital and free reserves of the Company.”

The Board of Directors further said in a stock exchange filing that “Unless otherwise permitted under applicable law, the Company shall utilize at least 50% of the Maximum Buyback Size i.e., INR 58,00,000 (Indian Rupees Fifty Eight Lac Only) (“Minimum Buyback Size”) towards the Buyback and accordingly, based on the Maximum Buyback Price and Minimum Buyback Size, the Company will purchase an indicative minimum number of 82622 Equity Shares. The buy-back price of Rs. 702, is 20.01 % and 18.96 % over the volume weighted average price (VWAP) of the shares of the Company at BSE for three months and one month respectively prior to the date of intimation by the Company about the proposed buy-back submitted to the exchange i.e. 28" November, 2022.”

The shares of Jenburkt Pharmaceuticals closed today at ₹617.50 apiece, down by 4.29% from the previous close of ₹645.15. The stock recorded a total volume of 9,061 shares compared to the 20-Day average volume of 4,586 shares. The stock price has risen from ₹17.50 as of 14th July 1995 to the current market price which logs in an all-time high of 3,428.57%. The stock has appreciated 13.73% over the past year, and YTD in 2022, it has climbed by 10.58%.