Small Cap Pharma Stock Fixes Record Date For Buyback of Shares, Scrip Trading Near 52-Week High

Small-cap Pharmaceuticals company, Aarti Drugs Ltd. has approved the buyback of shares. On Jul 21, 2023, the company fixed August 04, 2023, as the record date for the proposed buyback of shares. The company has a market cap of Rs 4728.16 Crore. Details below:

buyback of shares

In a regulatory filing, Arti Drugs Ltd. said, "The Buyback of up to 6,65,000 fully paid-up equity shares of face value of Rs. 10/- (Rupees Ten only) each of the Company ("Equity Shares") representing up to 0.72% of the paid up Equity Shares of the Company at a price of Rs. 900/- (Rupees Nine hundred Only) per Equity Share ("Buy Back Price") payable in cash for an aggregate amount of up to Rs. 59,85,00,000/- (Rupees fifty nine crore eighty five lakhs Only) ("Buyback Size"), which is 5.44% and 5.10% of the fully paid- up equity share capital and free reserves, as per the audited standalone and consolidated balance sheet, respectively, of the Company as on March 31, 2023, (the last audited balance sheet available as on the date of Board meeting), on a proportionate basis through tender offer ("Tender Offer") as prescribed under Buyback Regulations, to all the equity shareholders/ beneficiary owners who hold Equity Shares on the Record Date ("Buyback"). The Buyback period shall commence from the date of approval of buyback by the Board until the last date on which the payment of consideration for the Equity Shares bought back by the Company is made ("Buyback Period") The Buyback Size does not include any transaction costs viz. brokerage, applicable taxes inter alia including Buyback taxes, securities transaction tax, GST, stamp duty, expenses incurred or to be incurred for the Buyback like filing fees payable to Securities and Exchange Board of India ("SEBI"), any charges payable to the Stock Exchanges, advisors/legal fees, public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses etc. ("Transaction Cost")."

It added, "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."

"The Board of Directors has determined the Record Date for the proposed Buyback as August 4, 2023 ("Record Date")."

"The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations."

"The Company has formed a Buyback Committee to do all such acts, deeds, matters and things as it may, in its absolute discretion deem necessary, expedient usual or proper in connection with the proposed Buyback," the company said in the filing.

"Inga Ventures Private Limited has been appointed as the Manager to the proposed Buyback."

While, in another filing, the company said, "In continuation to the outcome of the Board meeting dated Friday, July 21, 2023 approving the Buy-back of Equity shares, the details as per SEBI Circular Number SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023 are given below:"

a) number of securities proposed for buyback	6,65,000 Equity Shares
b) number of securities proposed for buyback as a percentage of existing paid up capital	0.72%
d) actual securities in number and percentage of existing paid up capital bought back	Will be intimated post Buyback

Stock Movement & Returns

Meanwhile, the shares of Arti Drugs Ltd. closed today, at Rs 510.60 apiece with Rs 517.80 intraday high and Rs 506 intraday low on BSE. It hit 52-week high at Rs 534.90 apiece and 52-week low at Rs 310.80 apiece, respectively.

The stock surged 2.54% in 1 week. It surged 11.87% in 1 month. It has given 16.34% positive return in 1 year, while in 2 years, it has fallen, giving 28.42% negative return. In 3 years, it gave 41.49% positive return. In 5 years, it gave 289.65% positive return

Disclaimer

The stock just highlights the Buyback of Shares and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.