Drug major Dr Reddy's Laboratories is seeking nod from its shareholders for a share buyback for an aggregate amount not exceeding Rs 1,569.42 crore.
In a notice to shareholders, Dr Reddy's Laboratories said it is looking to buy back fully paid up equity shares of face value of Rs 5 for a price not exceeding Rs 3,500 per share.
Seeking nod from shareholders through a postal ballot, DRL said the planned shares to be bought back amounts to 14.9 per cent of the paid up share capital and free reserves as on March 31, 2015.
Explaining the rationale behind the move, DRL said: "The company has a strong cash flow position and the buyback proposal aims to effectively utilise surplus cash available."
The voting through postal ballot and e-voting will commence on March 3 and close on April 1, 2016.
As on December 2015, promoters held 25.57 per cent stake in the company with 74.43 with the public shareholders.
