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Dr Reddy’s Laboratories Ltd has come out with a public announcement for its share buyback offer with a maximum price of ₹3,500 a share. The maximum offer price at a premium of 15.5 per cent to the Monday’s closing price of ₹,3028.89.
25% of paid-up capital According to the schedule of the buyback offer, the process will begin on April 18 and the number of shares to be acquired through the buy-back process would not exceed 25 per cent of the total paid-up equity capital of the company.
Allocates ₹1,569-cr The Hyderabad-based pharma major has set aside ₹1,569 crore for the share buyback which involves 14.9 per cent of the total paid-up share capital and free reserves of the company as on March 31, 2015. This move comes after Dr Reddy’s board of directors approved the proposed share buyback of its fully paid-up equity shares of ₹5 each at a meeting on February 17 and on April 1 secured shareholders nod through a postal ballot.
The holders of the ADS may participate in the buyback by withdrawing ADS from the depository facility, acquiring equity shares upon such withdrawal and then selling those shares back to the company in the open market in India.
The company said it has a strong cash flow position and the buyback proposal aims to effectively utilise the surplus cash available.
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