Shares of Aarti Drugs that were muted on Monday jumped up sharply as the company announced the buyback.
What Happened: As per an exchange filing, the company’s board has approved a buyback of 6.65 lakh shares. The total cost of the buyback is around ₹59.85 crore. The price set for the buyback is ₹900. The price is around 50% higher than the stock’s current market price of around ₹610.
The Board of Directors has determined the record date for the proposed buyback as September 5, 2024. The company has announced its intention to buy back shares through the “tender offer” route, meaning the buyback price will remain fixed and will not fluctuate.
See Also: IRFC Replaces LIC In Nifty PSE Index, BHEL, Cochin Shipyard Enters Nifty Manufacturing Index
This marks the sixth time the company has undertaken a share buyback since it first did so in 2016. Following the initial buyback, the company conducted additional share repurchases in 2018, 2019, 2021, and 2023. Shares of the company rocketed as soon as the announcement was made in the closing hours of the market.
In the June quarter, the company posted a 30.5% year-on-year slump in its to 33.24 crore. Sales saw a 16% YoY slide to ₹555.34 crore.
Price Action: Shares of Aarti Drugs’ share price was 7.24% to close at ₹604.75 on Monday.
Read Next: Telegram Under Investigation In India For Alleged Criminal Activities: Report
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.