Dr Reddy's Laboratories announces share buyback offer

The company proposes to spend Rs 1,569.41 crore to buy shares at a maximum price of Rs 3,500 per share

Pharmaceutical major, Dr Reddy's Laboratories Limited, today announced the schedule for buyback of equity shares from public for about Rs 1,569.41 crore beginning April 18, 2016.

The company said it proposes to acquire 44,84,049 shares (around 4.48 million shares) of face value of Rs 5 at a maximum buyback price of Rs 3,500 per share. These shares represent a maximum buyback size of 14.9% of paid up equity shares of the company.

On February 17, the Board of Directors of Dr Reddy's had approved a decision to go for buyback of shares using the company’s reserves. On April 1, the company had taken shareholders’ approval for the same through a postal ballot.

The maximum buyback price fixed by the company represents 18.6% of the two week average closing price of shares. The company informed the stock exchanges that it would complete the proposed buyback of shares within six months.

The company scrip opened at Rs 3,079 Tuesday on BSE as compared to the previous close of Rs 3,028.