Shares of Aurobindo Pharma Ltd. were trading flat during the early trading session, touching a day’s high of Rs 1379 on 18 July despite the company announcing its first-ever share buyback amounting to Rs 750 crore at a 6.5% premium.

The first share buyback by Aurobindo Pharma involves acquiring up to 51.36 lakh equity shares, which translates to 0.88% of its total equity at Rs 1,460 per share. This makes the company buyback 6.6% higher than Tuesday’s close.

They will conduct this share buyback through a “tender offer,” obligating it to purchase shares at a fixed price. The record date for the same is scheduled to be 30 July 2024.

The promoters of Aurobindo Pharma are holding a 51.8% stake as of June and will actively participate in the buyback. Indian Mutual Funds have 19.17% exposure to the company whereas foreign portfolio investors own upto 16.73% of the company.

The company had split its stock back in 2011, changing its face value from Rs 5 per share to Rs 1 per share, and had last issued bonus shares to shareholders in 2015, according to Trendlyne data.

Over the last year, the drug maker’s shares have surged by upto 81%, and rose upto 26% year-to-date.

At 11:37 AM, the shares of Aurobindo Pharma were trading 2.66% lower at Rs 1,335.15 on BSE.

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