Eris Lifesciences gained 2.30% to Rs 473.45 after the company said it will receive tax exemption on the proposed buyback of shares.
On 4 July 2019, the company announced buyback of upto 17,39,130 equity shares at Rs 575 each, aggregating to Rs 100 crore.
The tax relief is applicable to companies which announced buyback before 5 July 2019, thereby covering the public announcement made by the company.
The company said it will take up this development before the applicable regulator, and after obtaining the necessary clearances and approvals, proceed with the buyback at the earliest. The announcement was made after market hours on Friday, 13 December 2019.
The S&P BSE Sensex was up 15.57 points or 0.04% at 41,025.28.
Shares of Eris Lifesciences rose 2.41% in two trading sessions to its current market price of Rs 473.45 from its recent closing low of Rs 462.30 on Thursday, 12 December 2019.
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In the past one month, shares of Eris Lifesciences jumped 15.19% to its current market price of Rs 473.45, outperforming Nifty Pharma index's 4.36% rise in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 60.367. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading below its 200-day moving average (DMA) placed at Rs 498.47. This level serves as a close resistance level for its near term trade.
Meanwhile, the stock's 50 DMA and 100 DMA are placed at Rs 433.33 and Rs 419.66 respectively.
Eris Lifesciences' consolidated net profit rose 8.7% to Rs 92.71 crore on 7.6% increase in net sales to Rs 280.46 crore in Q2 September 2019 over Q2 September 2018.
Eris Lifesciences is engaged in manufacturing, marketing and selling of generics within the chronic and acute categories of the Indian pharmaceutical market.
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