You are here: Home » Markets » News
Business Standard

Novartis India dips after board approves share buyback

The stock dipped 13% to Rs 720 after the board approved the buyback of shares at a price of Rs 760 through tender offer.

Novartis India

SI Reporter  |  Mumbai 

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters
Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters

has dipped 13% to Rs 720 on the BSE in an intra-day trade after the pharmaceuticals company announced that the board has approved the buyback of shares at a price of Rs 760 through tender offer. The buyback price is 8% discount to Thursday’s closing price of Rs 828 on the BSE.

“The board of directors of the company approved a buyback proposal for purchase by the company of up to 3.82 million equity shares of Rs 5 each, representing 11.95% of the total paid -up equity capital, from all the existing equity shareholders, including promoters of the company on the record date on a proportionate basis through the "Tender Offer" at a price of Rs 760 per equity share, aggregating to Rs 290.32 crore,” said in a statement.

The board noted the intention of the promoter of the company to participate in the proposed buyback, it added.

Meanwhile, the company reported a standalone net profit of Rs 22 crore for the quarter ended March 31, 2016 (Q4FY16). It had posted a net profit of Rs 52 crore for the corresponding period a year ago.

Total income from operations stood at Rs 167 crore for the quarter under consideration against Rs 208 crore in a year ago quarter.

said the figures are not comparable on account of the sale of OTC and animal health divisions.

The stock saw sharp run up in the past four trading sessions, ralling 17% from Rs 707 to Rs 828 till yesterday, after the company announced a share buyback plan.

At 10:37 AM, the stock was down 11% to Rs 735 on the BSE compared to 0.7% rise in the S&P BSE Sensex. Around 136,000 shares changed hands so far against an average 54,000 shares that were traded daily in past two weeks on the BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, May 27 2016. 10:41 IST