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Ajanta Pharma board approves ₹285 crore share buyback at a 25% premium
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Ajanta Pharma has fixed May 30, 2024 as the record date for the share buyback.
The board of Ajanta Pharma Ltd. approved its fourth buyback of equity shares since 2020 on Thursday, along with its March quarter results.
The drug-maker will repurchase up to 10.28 lakh equity shares or 0.82% of the total outstanding shares of the company. The buyback price of ₹2,770 is a 24.5% premium to the stock’s closing price on Thursday.
Ajanta Pharma will spend a sum of ₹285 crore to carry out the share buyback. It had spent a similar sum in 2021 For its share buyback in 2023, the company had spent a sum of ₹315 crore.
Amount spent by Ajanta Pharma in share buybacks:
- 2020: ₹135 crore
- 2021: ₹285 crore
- 2023: ₹315 crore
- 2024: ₹285 crore
The buyback will be carried out via the “tender offer” route, meaning that the company will repurchase the shares at a fixed price. You can read more about the difference between a tender offer and an open market buyback here.
Ajanta Pharma has fixed May 30, 2024 as the record date for the share buyback. The company is yet to announce a timeline for the buyback.
For the March quarter, Ajanta Pharma reported a net profit growth of 65.7% to ₹202.7 crore, while revenue increased by 19.5% from last year to ₹1,954.1 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation increased by 86.5% from the year-ago quarter to ₹278.4 crore, while margin expanded by nearly 1,000 basis points to 26.4% from 16.9%.
Shares of Ajanta Pharma ended 0.4% higher on Thursday at ₹2,225. The stock has risen only 3% so far in 2024 but has gained 73% in the last 12 months.
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