Aarti Drugs soars after board okays Rs 60-cr buyback

Aarti Drugs surged 9.72% to Rs 749.50 after the company’s board approved a proposal to buyback upto 6 lakh equity shares of the firm at Rs 1000 each.

The board of the drug maker proposed to buyback upto 6 lakh equity shares of the company (equivalent to 0.64% of the total paid-up equity share capital of the company) at Rs 1000 apiece. The aggregate consideration of the buyback shall not exceed Rs 60 crore.

The buyback price is at a premium of 46.39% compared with Aarti Drugs’ closing price of Rs 683.10 per shares recorded yesterday.

The board took note of intention of members of the promoter and promoter group including person in control of the company to participate in the proposed buyback.

The board of directors has determined the record date for the proposed buyback as 1 April 2021.

As on 12 March 2021, the promoter and promoter group held 60.2% stake in the company.

Aarti Drugs is a pharmaceutical company and has a strong presence in the anti-diarrhea, anti-inflammatory therapeutic groups.

The drug maker’s consolidated net profit soared 144.9% to Rs 68.03 crore on 12% rise in net sales to Rs 530.25 crore in Q3 December 2020 over Q3 December 2019.

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