Zydus Lifesciences' board meeting on May 20th to decide on share buyback

18 May 2022 , 03:25 PM

Zydus Lifesciences’ board will meet on May 20^th to take a decision regarding share buyback. If the decision is taken in favor of share buyback, then the company will pay out some of the cash to its shareholders through the share buyback. Its number of outstanding shares will also go down because of the share buyback. This will increase its Earnings Per Share. Due to increase in Earnings Per share after the buyback, share price of the company may go up.

In the past one year, stock price of the company has come down to around Rs 347 per share from around Rs 600 per share. 52-week high price of the company is around Rs 668.  Increasing the stock price and market capitalization of the company must therefore be a priority before the management of the company.  By doing share buybacks it is trying to achieve this. The Board of the company is very likely to give its approval to the buyback proposal.