GSK Pharma buyback price a dampener

DALAL STREET SPIKES

GlaxoSmithKline Pharmaceuticals (GSK Pharma) closed marginally higher as its buyback price disappointed street expectations. The stock of the pharma major ended at Rs 770.45, after hitting the day's low of Rs 761.

The company announced that its board of directors considered and approved buyback of its shares from the existing shareholders through the stock exchange route, at a price not exceeding Rs 800 per share within the limit of Rs 230.65 crore, being 25 per cent of the total paid-up equity capital and free reserves of the company.

Market sources said, the buyback price was below the street expectation of around Rs 850-860. The GSK Pharma stock had risen in the recent past following the announcement of its buyback plans.

But the maximum buyback price, which is at around 4 per cent premium to the ruling price, is not attractive enough to lift the stock higher, said a market analyst.