 "Sun Pharma trades firm after board approves buyback of shares")
Sun Pharmaceutical Industries was trading flat at Rs 754 on the BSE in an otherwise weak market after the pharmaceutical company on Thursday said it will buy back 7.5 million shares from the public at a price of Rs 900 each. The buyback price is almost 20% above its current market price.
The company has fixed record date as July 15, 2016 for the purpose of buyback of equity shares.
Sun Pharma said the buyback is being undertaken by the company to return surplus funds to the equity shareholders and thereby, enhancing the overall returns to shareholders.
The promoters of the company have indicated their intention to participate in the proposed buyback in such a manner that their aggregate shareholding percentage in the company will not fall below their current aggregate percentage shareholding, it added.
As on March 2016, promoters and promoter group held 54.97% stake in the company, while public held 45.02% and the employee trust 0.01%. Under Securities and Exchange Board of India (Sebi) guidelines, 15% of the buyback offer is reserved for small investors holding shares worth not more than Rs 2,00,000 as on the record date.
The stock moved higher by nearly 2% to Rs 765, after opening at Rs 750 on the BSE. It touched low of Rs 734 so far. At 10:43 AM, the S&P BSE Sensex and Nifty 50 index were down 3.5% each.
A combined 4.5 million shares changed hands on the counter on the BSE and NSE so far.
The company has fixed record date as July 15, 2016 for the purpose of buyback of equity shares.
Sun Pharma said the buyback is being undertaken by the company to return surplus funds to the equity shareholders and thereby, enhancing the overall returns to shareholders.
The promoters of the company have indicated their intention to participate in the proposed buyback in such a manner that their aggregate shareholding percentage in the company will not fall below their current aggregate percentage shareholding, it added.
As on March 2016, promoters and promoter group held 54.97% stake in the company, while public held 45.02% and the employee trust 0.01%. Under Securities and Exchange Board of India (Sebi) guidelines, 15% of the buyback offer is reserved for small investors holding shares worth not more than Rs 2,00,000 as on the record date.
The stock moved higher by nearly 2% to Rs 765, after opening at Rs 750 on the BSE. It touched low of Rs 734 so far. At 10:43 AM, the S&P BSE Sensex and Nifty 50 index were down 3.5% each.
A combined 4.5 million shares changed hands on the counter on the BSE and NSE so far.