Claris Lifesciences rose 2.02% to Rs 184 at 13:53 IST on BSE after the company announced buyback of upto 92.50 lakh equity shares at Rs 250 per share for an amount not exceeding Rs 231.25 crore.
The announcement was made after market hours on Thursday, 20 March 2014.
Meanwhile, the S&P BSE Sensex was up 47.30 points or 0.22% at 21,787.39.
On BSE, so far 3.85 lakh shares were traded in the counter as against average daily volume of 7.63 lakh shares in the past one quarter.
The stock was volatile. The stock surged as much as 8.15% at the day's high of Rs 195.05 so far during the day. The stock rose 1.05% at the day's low of Rs 182.25 so far during the day. The stock had hit a 52-week high of Rs 232 on 3 April 2013. The stock had hit a 52-week low of Rs 142.05 on 18 June 2013.
The stock had underperformed the market over the past one month till 20 March 2014, advancing 1.81% compared with the Sensex's 5.86% rise. The scrip had, however, outperformed the market in past one quarter, gaining 3.32% as against Sensex's 3.13% rise.
The small-cap company has equity capital of Rs 63.82 crore. Face value per share is Rs 10.
Claris Lifesciences after market hours on Thursday, 20 March 2014 announced buyback of equity shares of the company from its shareholders through tender offer. The company would buyback upto 92.50 lakh fully paid up equity shares of face value of Rs 10 each at Rs 250 per fully paid-up equity share for an aggregate maximum amount of Rs 231.25 crore on a proportionate basis through the tender offer process. The record date for the buyback of equity shares is fixed as 2 April 2014.
With regard to motive behind buyback of shares, Claris Lifesciences said that subsequent to the sale of the company's infusion business for India and emerging markets to Claris Otsuka (joint venture) wherein Otsuka Pharmaceutical Factory, Inc., Japan, Mitsui & Co., Japan and Claris Lifesciences are shareholders for 60%, 20% and 20% respectively, the board of directors of Claris Lifesciences at its meeting held on 7 January 2014 considered various alternatives for rewarding the equity shareholders. After considering several factors and benefits to the equity shareholders, the board decided to recommend share buyback, Claris Lifesciences said in its buyback offer document.
The promoters and promoter entities currently held 60.21% stake in Claris Lifesciences.
Claris Lifesciences' consolidated net profit fell 29.5% to Rs 17.75 crore on 25.4% decline in net sales to Rs 144.43 crore in the quarter ended 31 December 2013 over the quarter ended 31 December 2012.
Claris Lifesciences is a sterile injectables pharmaceutical company with a market presence across 100 countries worldwide. The company manufactures and markets products across various therapeutic segments. A significant majority of these products are generic drugs that are capable of being directly injected into the human body and are predominantly used in the treatment of critical illnesses.
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