The scrip of Aarti Drugs today rose by nearly 5 per cent after the company said its board will meet next week to consider a share buyback proposal.
The stock gained 4.61 per cent to end at Rs 738.40 on BSE. During the day, it jumped 7.67 per cent to Rs 760 -- its 52-week high.
On NSE, shares of the company went up by 4.57 per cent to close at Rs 740.40.
"A meeting of board of directors of the company is scheduled to be held on Monday, January 8, 2O18, to consider inter alia, proposal of buyback of the fully paid-up equity shares of the company," Aarti Drugs said in a BSE filing today.
The company, which manufactures bulk drugs and chemicals, did not elaborate on the size of the share buyback.
Share buybacks typically improve earnings per share and return surplus cash to shareholders, while also supporting share price during period of sluggish market condition.
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