Investors holding shares in their demat accounts as of the close on April 16 will be eligible to participate in the buyback.
According to the exchange filing, the company plans to repurchase up to 54,23,728 fully paid-up equity shares, each with a face value of Rs 1. This represents up to 0.93% of the total outstanding equity shares.
The repurchase will be carried out through the tender offer route, under which eligible shareholders can tender their shares at the pre-determined price of Rs 1,475 per share. The tender mode typically means that a company offers to buy shares from existing shareholders at a fixed price, usually at a premium to the current market price.
This marks the company’s first buyback in nearly two years. In August 2024, Aurobindo Pharma had announced a buyback of 51.36 lakh shares at Rs 1,460 apiece, with a total outlay of Rs 750 crore. That buyback was also executed through the tender offer route.
Following the development, shares of the company gained nearly 2% to their day’s high of Rs 1,358 on the NSE. Aurobindo Pharma share price has gained around 8% over the past month, even as the Nifty 50 declined more than 11% in March. The stock has risen about 21% over the last six months and is up nearly 11% on a year-to-date basis.
Aurobindo Pharma Ltd. is a leading Indian multinational pharmaceutical company engaged in the development, manufacturing and marketing of generic drugs, active pharmaceutical ingredients and specialty formulations. It has a presence in over 150 countries.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)