Dr Reddy's Laboratories shares surged as much as 4 per cent on Wednesday after the pharma company approved buyback of its equity shares up to Rs 1,569 crore.
Dr Reddy’s Laboratories shares surged as much as 4 per cent on Wednesday after the pharma company approved buyback of its equity shares up to Rs 1,569 crore.
At 3.04 pm, shares of Dr Reddy’s Labs were trading 2.80 per cent up at Rs 2,940. The scrip opened at Rs 2,877 and had touched a high and low of Rs 2972.95 and Rs 2877, respectively, in trade so far.
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Later, the share price of Dr Reddy’s Labs closed 3.52 per cent up at Rs 2961.05.
“The maximum buyback price represents 18.6 per cent premium, compared to the average of weekly high and low of the closing share price of the company during the past two weeks till Feb 16, 2016. The buyback is proposed on account of the company’s strong cash flow position and is expected to be EPS accretive contributing to an overall enhancement of value for shareholders going forward,” Dr Reddy’s Labs said in a BSE filing.
The company has also appointed Kotak Mahindra Capital Company as its merchant banker for the buyback process.
“The actual number of equity shares bought back, will depend upon the actual price, excluding transaction costs, paid for equity shares bought back and the aggregate consideration, paid for the buyback, subject to the maximum buyback size,” said the company in the filing.