Aurobindo Pharma Limited (AUROPHARMA) is one of the leading pharmaceutical companies that primarily focuses on producing and selling active pharmaceutical ingredients, generic drugs, and associated services. Today, the company announced a buyback of up to 51,36,986 fully paid-up equity shares at a price of Rs. 1,460 per share, aiming to return an aggregate amount of Rs.750 crore to its shareholders.
The buyback will help optimize the capital structure, improve return on equity, and enhance overall shareholder value by reducing the number of shares in circulation. This buyback plan will also provide liquidity to shareholders.
| Details | Information |
| Listing | BSE, NSE |
| Buyback Size | Up to Rs. 750 crore |
| Number of Shares | Up to 51,36,986 equity shares |
| Face Value | Rs.1 per equity share |
| Buyback Price | Rs.1,460 per equity share |
| Percentage of Total Paid-up Equity Capital | 0.88% |
The buyback amount of Rs. 750 crore represents 3.84% and 2.67% of the total paid-up equity share capital and free reserves of the company, respectively, based on the latest audited financial statements as of March, 2024.
The buyback will be carried out through a tender offer route as per SEBI (Buy-Back of Securities) Regulations, 2018, and the Companies Act, 2013. The record date to determine eligible shareholders is July 30, 2024. Both promoters and public shareholders are eligible to participate on a proportionate basis. Aurobindo Pharma has established a Buyback Committee to oversee the entire process, ensuring it is conducted efficiently and in compliance with regulatory norms.
Shareholders holding Aurobindo Pharma shares in their Demat accounts as of the announced date will qualify for this buyback. Eligible shareholders can participate by selling their shares, receiving payment based on the number of shares accepted by the company as part of the buyback plan.
| Shareholders | % |
| Promoters & Promoter Group | 51.80% |
| Mutual Funds | 19.17% |
| Foreign Portfolio Investors & FIIs | 16.73% |
| General Public and Others | 5.77% |
| Insurance Companies | 2.87% |
| Qualified Institutional Buyers | 2.13% |
| Others | 1.53% |
The exact post-buyback shareholding pattern will be determined after the completion of the buyback process.
Conclusion: Aurobindo Pharma’s Rs. 750 crore buyback is a move to enhance shareholder value and optimize the capital structure. The company’s approach to returning capital to shareholders and rewarding investors along with maintaining financial health highlights it in the industry.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Jul 18, 2024, 10:55 AM IST
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