Chennai, Feb 17 (IANS) Pharma major Dr.Reddy’s Laboratories said on Wednesday that it has decided to buyback around 44, 84,049 of equity shares representing around 2.6 percent for Rs.1,569.4 crore as it has strong cash flows.
The maximum buyback price per share is fixed at Rs.3,500 representing 18.6 percent premium compared to the average for the weekly high and low of the closing share price of the company during the last two weeks – up to February 16.
In a regulatory filing in BSE, the company said the board of directors at their meeting decided on buyback of the shares subject to approvals from shareholders.
According to the company, the actual number equity shares bought back, will depend upon the actual price, excluding transaction costs, paid for the equity shares bought back and the aggregate consideration, paid for the buyback, subject to the maximum buyback size, that is, Rs.1,569.4 crore.
According to Dr.Reddy’s Laboratories, it will utlilise at least Rs.784.7 crore- 50 percent of Rs.1,569.4 crore earmarked as maximum buyback size – to buy back around 22,42,024 shares or 1.3 percent of of the equity.
Meanwhile to stock price flared up to Rs.2,961.05 on Wednesday as against the Tuesday’s closing price of Rs.2,860.35.