Today, investors look for situations in the stock market where they can turn their cents to dollars. There are various situations like turnarounds, rights issues, stock splits, Initial Public Offerings (IPOs), and buybacks. Investors are constantly in hunt for situations like these. So let’s discuss one such situation: The Ajanta Pharma buyback.
About Ajanta Pharmaceuticals Limited
Ajanta Pharma Limited (APL) is a pharmaceutical company headquartered in Mumbai, India. It has strong presence in Branded Generic business in India & Emerging markets; and Generic business in USA. In India, company operates in selected therapeutic areas of Cardiology, Dermatology, Ophthalmology and Pain management. Its brands hold leadership positions in sub-therapeutic areas they are present in. In Emerging Markets, company has presences in Africa, South East Asia, West Asia, and CIS on broader therapeutic segments such as anti-malarial, gastro, antibiotics, cardiology, dermatology, pain management, etc.
As on 31 March 2021, Ajanta has 36 ANDA approvals which are commercialized. And it is awaiting US FDA approval for 15 ANDAs. Company plans to file 10-12 ANDAs during the current financial year. Company has state-of-the-art research facilities for formulation and API development located at Mumbai, India. R&D capabilities are evident from number of 1st to market products launched by the company providing patients most needed compliance and convenience.
Ajanta Pharma buyback
Ajanta Pharmaceutical Limited’s board has approved a share buyback plan of up to Rs 286-crore, wherein the drug maker will buy back shares at a maximum price of Rs 2,550 apiece.
|Buyback Type||Tender Offer|
|Record Date||Jan 14 2022|
|Buyback Offer Amount||₹ 285.60 Cr|
|Board Meeting approving the proposal Date||Dec 28 2021|
|Public Announcement Date||Dec 28 2021|
|Buyback Offer Size||1.29%|
|Buyback Number of Shares||11,20,000|
|Buyback Price||₹ 2550 Per Equity Share|
The company’s board has approved buyback of up to 11,20,000 fully paid-up shares of face value of Rs 2 each at a price of Rs 2,550 per share payable in cash, Ajanta Pharma said in a regulatory filing.
The total pay-out towards buyback of shares will be not exceeding Rs 356 crore, including a share buyback consideration not exceeding Rs 286 crore and tax not exceeding Rs 70 crore, on a proportionate basis through the tender offer process, it added.
This buyback represents 1.29 per cent of the total number of equity shares of the company and 9.89 per cent of the paid-up share capital and free reserves of the company as per the audited financial statements for the financial year ended on March 31, 2021, the drug firm stated.
The Record date for the same has been fixed as January 14, 2022, it added.
Ajanta Pharma Address
Address:-‘Ajanta House’, 98 Govt Industrial Area, Chark
Mumbai – 400 067, Maharashtra, India
Phone: +91 22 6606 1000
Ajanta Pharma Buyback Registrar
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Ajanta Pharma Lead Managers
Vivro Financial Services Private Limited
Discussed above are the details of the Ajanta Pharmaceuticals Limited buyback. But investors must have shares in their demat account as on the record date i.e. January 14, 2022. Investors can perform further analysis to exploit the situation to their benefit.