The board of Unichem Laboratories on January 8 had approved buyback of 20.6 million equity shares at a price of Rs 430 per share through the tender offer route.
Unichem Laboratories said that the buyback will help the Company to return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members.
The buyback is expected to improve return on equity and earnings per share by reduction in the equity base, thereby leading to long term increase in members’ value, it added.
Since January 3, the stock had outperformed the market by 17% after the company said that the board at their meeting on January 8 shall consider a proposal to buy-back the fully paid-up equity shares of the Company. On comparison, the S&P BSE Sensex was up 1% during the same period.