Aarti Drugs surges on Rs 60 cr share buyback announcement

Aarti Drugs has announced a share buyback of up to 6,65,000 shares at a price of Rs 900 per share. The buyback premium on the market price of Rs 508.5 per share is 76.99%. The total buyback amount is Rs 59.85 crore. The buyback offer is of the tender type and promoter participation is allowed. The face value of each share is Rs 10 and the shares are listed on the NSE and BSE. The record date for the buyback is yet to be announced. 

Shareholders who own the company’s stock on August 4, 2023, will be eligible to participate in the repurchase. During the repurchase period, owners can sell their shares to the firm for Rs 900 per share at the given price. The repurchase period begins on the date of board approval and ends when payment for the bought-back shares is completed. The previous repurchase, which occurred in 2021, was conducted at a price of Rs 1,000 per share. The stock market price at the time was Rs 680. 

Aarti Drugs Ltd. was established in 1984 and forms part of the Aarti Group of Industries with a robust R&D Division at Tarapur, Maharashtra Industrial Development Corporation (MIDC) near manufacturing locations. The company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, and Specialty Chemicals and also produces Formulations with its wholly-owned subsidiary – Pinnacle Life Science Private Limited. 

The shares of Aarti Drugs surged over 12% and hit a 52-week high of Rs 575. The shares previously closed at Rs 510.60 and today it opened at Rs 571.95 and hit an intraday high and low of Rs 554.15. The company is having a market capitalisation of Rs 5,287.92 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.