Aarti Drugs surges 7% on board nod for share buyback

Aarti Drugs hit a fresh 52-week high of Rs 785, up 7% on BSE in intra-day trade so far, after the company’s board share buyback at a price of Rs 875 per share through tender offer.

“The board approved a buyback of up to 0.27 million equity shares representing up to 1.5% of total equity of the company at a price of Rs 875 per equity share for an aggregate amount of up to Rs 241 million, on a proportionate basis through the tender offer,” Aarti Drugs said in a statement.

The Board took note of intention of members of the promoter and promoter group including person in control of the Company to participate in the proposed Buyback, it added.

The pharmaceutical company has fixed January 19, 2018 as record date of for the purpose of buyback.

The stock has outperformed the market by surging 23% in past one week after the company said that its board will meet on January 8, to consider share buyback proposal. The S&P BSE Sensex was up 1.8% during the week.

At 10:25 AM; the stock was up 5% at Rs 770 against 0.17% rise in the benchmark index. The trading volumes on the counter more than doubled with a combined 260,932 shares changed hands on BSE and NSE so far.