Shares of Ajanta Pharma were down around 2% on Friday even as the company’s board approved the share buyback proposal.

What Happened: The pharma company’s board on Friday approved the buyback of 22.10 lakh shares at the price of ₹1,425 – just shy of the company’s 52-week high.

The buyback of around 2.59% of the total number of equity shares would cost the company around ₹315 crore. The number is exclusive of the buyback tax of around ₹74 crore. The company’s promoters currently hold a 66.11% stake.

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Shares of the speciality pharmaceutical formulation company, however, dipped further on Friday after the announcement was made in the afternoon. The company reported a 16% year-over-year rise in revenue in the December quarter at ₹972 crore.

Following the results, brokerage firm ICICI Direct maintained its ‘buy’ rating for the stock with a price target of ₹1,385 – a close to 15% upside from the stock’s last closing price of ₹1,228.65.

Price Action: Ajanta Pharma shares were down 2.32% to trade at ₹1,200.15 on Friday afternoon.

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