Novartis India slumped 12.06% to Rs 728 at 12:30 IST on BSE after the company's buyback plan disappointed investors.
The company announced its buyback plan after market hours yesterday, 26 May 2016.Meanwhile, the S&P BSE Sensex was up 181.32 points or 0.69% at 26,550.90.
More than usual volumes were witnessed on the counter. On BSE, so far 1.56 lakh shares were traded in the counter as against average daily volume of 24,451 shares in the past one quarter. The stock hit a high of Rs 746 and a low of Rs 720 so far during the day. The stock had hit a 52-week high of Rs 982 on 20 July 2015. The stock had hit a 52-week low of Rs 600 on 29 February 2016. The stock had outperformed the market over the past one month till 26 May 2016, advancing 9.54% compared with Sensex's 1.38% rise. The scrip had also outperformed the market in past one quarter, surging 30.58% as against Sensex's 13.87% rise.
The mid-cap company has equity capital of Rs 15.98 crore. Face value per share is Rs 5.
Novartis India's board of directors approved a buyback of upto 38.20 lakh shares representing 11.95% of the total paid -up equity capital, from all the existing equity shareholders of the company at a price of Rs 760 per share aggregating to Rs 290.32 crore. The board noted the intention of the promoter of the company to participate in the proposed buyback.
The buyback price of Rs 760 per share was at a discount of 8.19% to the yesterday, 26 May 2016's closing price of Rs 827.85.
Novartis India's net profit dropped 58.54% to Rs 21.53 crore on 19.44% decline in net total income from operations to Rs 167.27 crore in Q4 March 2016 over Q4 March 2015.
Novartis India said that the board of directors of the company approved dividend of Rs 10 per share for the year ended 31 March 2016 (FY 2016).
Novartis India has core businesses in pharmaceuticals, vaccines, consumer health, generics, eye care and animal health. Novartis AG holds 75% stake in Novartis India (as per the shareholding pattern as on 31 March 2016).
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