Alembic’s buyback at 37% premium begins on Monday

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Mumbai | Published: April 14, 2018 3:11:18 AM

The company is planning to buyback 1.02 crore shares worth Rs 82 crore. The offer price of Rs 80 per share for the buyback is 37% higher than the closing price of the stock on Friday of Rs 58.30.

The buyback offer of Alembic whose business interests include pharmaceuticals, real estate and power assets will begin on April 16 and close on April 27.

The buyback offer of Alembic whose business interests include pharmaceuticals, real estate and power assets will begin on April 16 and close on April 27. The company is planning to buyback 1.02 crore shares worth Rs 82 crore. The offer price of Rs 80 per share for the buyback is 37% higher than the closing price of the stock on Friday of Rs 58.30. The offer represents 24.02% of the fully paid-up equity share capital and free reserves of the company as on December 2017. March 23, 2018, was the record date to decide eligible shareholders. As on March 13, 2018, the promoters and members of the promoter group held 17.01 crore equity shares of the company, representing 63.71% of its existing paid-up equity share capital. The promoters too will participate in the buyback.

In FY18 firms spent more than Rs 52,846.56 crore on buybacks, the highest in twenty years. Buybacks have become the preferred route over dividends, as dividend income in the hands of all residents, domestic companies, trusts or funds except those established for religious, educational or charitable purposes, attracts an additional dividend tax of 10% on dividend income over Rs 10 lakh a year.

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