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Novartis India slips 8% as buyback price disappoints

The board approved share buyback at a price of Rs 670 per share, against Friday's close of Rs 683 on BSE.

SI Reporter  |  Mumbai 

Novartis is addressing the pricing question with a new type of agreement: For patients whose care is covered by the US govt programmes, the company will only get paid if patients show signs that the treatment is working within a month | Photo: istock

slipped 8% to Rs 626 on BSE in the noon deals after the price announced by the pharmaceutical company disappointed the investors.

The company announced that its board has approved the buyback of 3.45 million equity shares representing 12.26% of the total paid-up equity share capital at a price of Rs 670 per share. The buyback price is 2% lower to its Friday’s closing of Rs 683 on BSE.

The buyback will be done on a proportionate basis through the tender offer and will cost nearly Rs 231 crore.  The promoters also intend to participate in the proposed buyback offer.

As on June 30, 2017, promoters held 73.40% stake in while the public held 26.6%.

In past one month, the stock had outperformed the market by surging 17% against 2% rise in the S&P BSE Sensex.

The trading volumes on the counter jumped more than three-fold with 130,000 shares changed hands on BSE against an average 42,000 shares were traded daily in past two weeks.

First Published: Mon, September 25 2017. 14:26 IST