 "Novartis India dips after board approves share buyback")
Novartis India 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,” Novartis India 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.
Novartis India 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.
“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,” Novartis India 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.
Novartis India 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.