Alembic hits record high as board approves share buyback proposal

The stock hit a new high of Rs 72, up 8% on BSE after its board approved the proposal of buyback of equity shares of the company at price of Rs 80 per share through tender offer.

Alembic hits a new high of Rs 72, up 8% on BSE in early morning trade after its board approved the proposal of buyback of equity shares of the company at price of Rs 80 per share through tender offer.

“The board of directors approved the proposal for buy-back of 10.2 million equity shares of the Company having face value of 2 (representing up to 3.84% of the total paid-up equity share capital of the Company) at a price not exceeding Rs 80 per share for a total consideration not exceeding Rs 820 million,” Alembic said in a regulatory filing.

The share buyback will be from all the equity shareholders/beneficial owners of equity shares of the company including promoters and members of promoter group, as on the record date, on a proportionate basis through the "Tender Offer" route using stock exchange mechanism, it added.

As of December 2017, the promoters hold 63.71% stake in Alembic. Individual shareholders held 24.6% holding, followed by bodies corporate (3.25%), mutual funds (2.15%) and foreign portfolio investors (1.61%).

Meanwhile, the company engaged in pharmaceutical and real estate business has reported a standalone net profit of Rs 56 million in December 2017 quarter. It had profit of Rs 7 million in the same quarter last year.

At 09:53 AM; the stock was trading 5% higher at Rs 70, against 0.11% decline in the S&P BSE Sensex. A combined 7.71 million shares changed hands on the counter on BSE and NSE so far.