Aurobindo Pharma to buyback shares at a 6.5% premium

18 Jul 2024 , 11:32 AM

On Tuesday, Hyderabad-based medicine company Aurobindo Pharma Ltd. announced its first ever buyback of equity shares valued up to ₹750 Crore. Shares, however, have fallen since the news.

Aurobindo Pharma plans to buy back up to 51.36 lakh equity shares with a face value of ₹1, representing 0.88% of its total equity.

Aurobindo Pharma’s buyback price is set at ₹1,460 per share, a 6.6% premium to its Tuesday closing price. This would be the first-ever share buyback of the company.

Aurobindo Pharma will buy back shares under the “tender offer” procedure, which requires the corporation to purchase the shares at a fixed price. To learn more about the distinction between a tender offer and an open market repurchase, click here.

The record date for the share buyback has been set as July 30, 2024. Promoters of the company will also participate in the share buyback.

As of the June quarter, Aurobindo Pharma’s promoters owned 51.8% of the company, while India’s mutual funds held 19.17%. Foreign portfolio investors hold a 16.73% stake.

At around 11.15 AM, Aurobindo Pharma was trading 1.85% lower at ₹1,345.25 per piece, against the previous close of ₹1,371.05 on NSE. The counter touched an intraday high and low of ₹1,377.80, and ₹1,342.50, respectively.

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