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  4. Ajanta Pharma surges as much as 7% after the drug maker says it will buy back shares at 17% premium

Ajanta Pharma surges as much as 7% after the drug maker says it will buy back shares at 17% premium

Ajanta Pharma surges as much as 7% after the drug maker says it will buy back shares at 17% premium
Stock Market2 min read
  • Ajanta Pharma today announced its plans to buy back 11.20 lakh shares from the market at ₹2,550 per share, which is 10% more than the current market price.
  • This is the third share buy back strategy of the company so far.
  • In 2020, the company had bought 7.35 lakh shares at ₹1,850 per share and in 2019 it had bought 7.69 lakh shares at ₹1,300.
Shares of Ajanta Pharma surged 7% today after the company announced a share buy back of 11.20 lakh shares at ₹2,550 per share, which is nearly 17% above the previous close price of ₹2,180.30.

This is the third buyback done by the company in the last three years. In 2020, the company had bought 7.35 lakh shares at ₹1,850 per share and in 2019 it had bought 7.69 lakh shares at ₹1,300.

Usually, a share buy back is done to reduce the number of outstanding shares in the market and increase the shares of the stakeholders. Also, a company might also buy back shares if it believes the share price is below the intrinsic value.

In Ajanta Pharma’s case, shares of the company have performed well and surged 40% in 2021.

The Maharashtra-based company’s financial performance has also seen a smooth growth trajectory. The company is a specialty pharmaceutical formulation company engaged in the development, manufacture and marketing of quality finished dosages.
Particulars

Total income

Profit

Jul-Sep

₹914 crore

₹195 crore

Apr-Jun

₹780 crore

₹173 crore

Jan-Mar

₹759 crore

₹159 crore


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