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Aurobindo Pharma to Consider Share Buyback Worth Rs 750 Cr

Jul 19, 2024

By: BlinkX Research Team

Hyderabad-based drug maker Aurobindo Pharma announced on Thursday, July 18, that it will conduct its first-ever buyback of its equity shares worth up to Rs 750 crore.

Key Takeaways from Aurobindo Pharma’s Share Buyback

• Aurobindo Pharma announced that it will conduct its first-ever buyback of its equity shares worth up to Rs 750 crore.
• The company will buy back up to 51.36 lakh equity shares with a face value of Rs 1, or 0.88% of total equity.
• The repurchase price has been set at Rs 1,460 per share, which represents a 6.6% premium over Aurobindo Pharma's closing price on Tuesday.
• The record date for the share buyback has been set as July 30, 2024. 

Aurobindo Pharma said that it will buy back up to 51.36 lakh equity shares with a face value of Rs 1, or 0.88% of total equity.

The repurchase price has been set at Rs 1,460 per share, which represents a 6.6% premium over Aurobindo Pharma's closing price on Tuesday. This is the company's first-ever share repurchase.

Aurobindo Pharma will buy back shares under the "tender offer" procedure, which requires the corporation to purchase the shares at a predetermined price.

The record date for the share repurchase has been set as July 30, 2024. Promoters of Aurobindo Pharma will also participate in the share buyback.

As of the June quarter, Aurobindo Pharma's promoters owned 51.8% of the firm, while India's mutual funds held 19.17%. Foreign portfolio investors own a 16.73% stake.

About Aurobindo Pharma Limited

Aurobindo Pharma Limited, founded in 1986, is an Indian pharmaceutical firm. The firm is primarily involved in the production and commercialization of active pharmaceutical ingredients, branded medications, generic pharmaceuticals, and associated services. Its product portfolio spans seven therapeutic/product areas: central nervous systems (CNS), antiretrovirals (ARVs), cardiovascular (CVS), SSP - Oral & Sterile, anti-infectives, anti-diabetics, and cephalosporins - Orals. 

Aurobindo Pharma is developing a variety of cancer and hormonal drugs. It is developing both topical and transdermal dermatological treatment products. It is also developing three depot injections using the microsphere and nano-suspension technology platforms.

The corporation markets its products in over 150 countries worldwide. Its subsidiaries include APL Healthcare Limited and APL Pharma Thai Limited, among others.   

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