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    Ajanta Pharma announces Rs 285 crore share buyback at 24% premium

    Synopsis

    Ajanta Pharma on Thursday announced a Rs 285 crore buyback of up to 10.28 lakh shares through a tender offer at a price of Rs 2,770 — a premium of 24% --- against Thursday’s closing price of Rs 2,233.

    Ajanta Pharma announces Rs 285 crore share buyback at 24% premiumET Bureau & Agencies
    Ajanta Pharma on Thursday announced a Rs 285 crore buyback of up to 10.28 lakh shares through a tender offer at a price of Rs 2,770 — a premium of 24% --- against Thursday’s closing price of Rs 2,233.

    The board has approved a buyback of up to 10,28,881 equity shares of the company (representing 0.82% of the total number of equity shares), which will be brought back from the equity shareholders as on the record date i.e. May 30, 2024.

    The company generated a cash flow of Rs 812 crore with a cash conversion ratio of 69%. Given the strong financial position, the board approved the distribution of Rs 351 crore to shareholders in the form of a buyback.

    The process, timelines and other requisite details of the buyback will be announced soon. The letter of offer will be issued in accordance with the buyback regulations.

    According to the regulation, the board of directors can increase the maximum buyback price and decrease the number of securities proposed to be brought back till one day prior to the record date, so that there is no change in the aggregate size of the buyback.

    As of 31st March 2024, 66.2% of the equity was held by the promoter and promoter group entities, while the remaining 33.8% was distributed among public, banks, mutual funds, NBFCs etc.

    Ajanta Pharma reported 66% YoY growth in PAT to Rs 203 crore against Rs 122 crore in the last-year period, while the revenue was up 20% YoY at Rs 1,054 crore.

    Company’s EBITDA stood at Rs 278 crore for the March quarter, up from Rs 149 crore in Q4FY23 and the sales displayed a growth of 14% to Rs 326 crore.

    Also read: Consolidation continues in banking stocks; Nifty Bank support placed at 49K: Experts

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