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Unichem Laboratories has dipped 9% to Rs 344 on BSE in intra-day trade after the stock of pharmaceutical company turned ex-share buyback today. The company has fixed February 16, 2018 as the record date for the purpose of buyback of equity shares. The board of Unichem Laboratories on January 8 had approved buyback of 20.6 million equity shares at a price of Rs 430 per share through the tender offer route. Unichem Laboratories said that the buyback will help the Company to return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members. The buyback is expected to improve return on equity and earnings per share by reduction in the equity base, thereby leading to long term increase in members’ value, it added. Since January 3, the stock had outperformed the market by 17% after the company said that the board at their meeting on January 8 shall consider a proposal to buy-back the fully paid-up equity shares of the Company.
On comparison, the S&P BSE Sensex was up 1% during the same period. At 02:03 PM; the stock was down 8.5% at Rs 347 on BSE against 0.69% rise in the benchmark index. A combined 381,741 shares changed hands on the counter on BSE and NSE.