Sun Pharma gains as good share buyback price attracts investors' interest

Sun Pharmaceutical Industries rose 0.16% to Rs 752.90 at 12:00 IST on BSE after the board of directors approved buyback of the company's equity shares at a good buyback price.

The announcement was made before market hours today, 24 June 2016.

Meanwhile, the S&P BSE Sensex was off 971.62 points or 3.8% at 26,030.60 slumping along with the carnage witnessed in world financial markets after Britain voted to leave the European Union (EU) results showed after Brexit Referendum.

On BSE, so far 5.76 lakh shares were traded in the counter as against average daily volume of 5.43 lakh shares in the past one quarter. The stock hit a high of Rs 765 and a low of Rs 734.10 so far during the day. The stock had hit a 52-week high of Rs 965.15 on 20 August 2015. The stock had hit a 52-week low of Rs 706.40 on 24 November 2015. The stock had underperformed the market over the past one month till 23 June 2016, falling 4.16% compared with Sensex's 7.02% rise. The scrip had also underperformed the market in past one quarter, declining 11.21% as against Sensex's 6.57% rise.

The large-cap company has equity capital of Rs 240.68 crore. Face value per share is Rs 1.

Sun Pharmaceutical Industries said that the company will buyback upto 75 lakh shares at a price of Rs 900 each. The buyback is being undertaken by the company to return surplus funds to the equity shareholders and thereby, enhancing the overall returns to shareholders. The buyback price is 19.73% premium to the closing price of Rs.751.70 yesterday, 23 June 2016. The record date for the buyback is 15 July 2016. The promoters of the company have indicated their intention to participate in the proposed buyback in such a manner that their aggregate shareholding percentage in the company will not fall below their current aggregate percentage shareholding.

Sun Pharmaceutical Industries' (Sun Pharma) consolidated net profit rose 92.7% to Rs 1713.69 crore on 21.5% growth in net sales to Rs 7413.87 crore in Q4 March 2016 over Q4 March 2015.

Sun Pharmaceutical Industries is a specialty generic pharmaceutical company and India's top pharmaceutical company.

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