Dr Reddy's shares extend rally; up nearly 5% on buyback plan

Extending its rally for the second straight session, the stock of drug major Dr Reddy's rose by nearly 5 per cent today as the company will buyback around 44.85 lakh shares, accounting for about 2.6 per cent of the existing paid up capital, for up to Rs 1,569 crore.
The stock gained 4.52 per cent to settle at Rs 3,094.95 on BSE. During the day, it jumped 6.44 per cent to Rs 3,151.85.
On NSE, shares of the company rose by 4.82 per cent to end at Rs 3,103.60.
The stock was the top gainer on both Sensex and Nifty indices.

In the previous session also, the stock went up by 4 per cent.
The company's board has approved a proposal to buyback shares, subject to the approval of shareholders, for an aggregate amount not exceeding Rs 1,569.4 crore at a price not more than Rs 3,500 per share under the open market route, Dr Reddy's Laboratories said in a regulatory filing yesterday.
"The buyback is proposed on the account of the company's strong cash flow position and is expected to be EPS accretive contributing to an overall enhancement of value for shareholders going forward," it added.
The maximum buyback price represents 18.6 per cent premium, compared to the average of the weekly high and low of the closing price of the company during the last two weeks, it said.