Ajanta Pharma Ltd board approves buyback of shares at Rs. 1850

The Board of Directors of Ajanta Pharma Ltd, at its meeting held on 3rd November 2020, have unanimously approved the proposal to buyback its fully paid-up equity shares of Rs. 2/- (Rupees Two only) each not exceeding 7,35,000 (Seven Lakhs Thirty-Five Thousand only) equity shares (representing 0.84% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 1,850/- (Rupees One Thousand Eight Hundred and Fifty only) per equity share (the "Buyback Offer Price") payable in cash for an aggregate consideration not exceeding Rs. 135,97,50,000/- (Rupees One Hundred Thirty-Five Crores Ninety-Seven Lakhs and Fifty Thousand only) excluding taxes payable under Income Tax Act, 1961 and expenses incurred or to be incurred for the buyback viz. brokerage costs, fees, turnover charges, taxes such as securities transaction tax and goods and services tax (if any), stamp duty, advisors fees, printing and dispatch expenses and other incidental and related expenses and charges (the "Buyback Offer Size") being 5.52% and 5.26% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company for the financial year ended 31st March 2020, respectively (the last audited financial statements available as on the date of Board meeting recommending the proposal of the Buyback) and is within the statutory limits of 10% (Ten Percent) of the aggregate of the fully paid-up equity share capital and free reserves under the Board of Directors approval route as per the provisions of the Companies Act, 2013 from all the equity shareholders of the Company including promoters and members of the promoter group, as on the record date, using mechanism for acquisition of equity shares through stock exchange on a proportionate basis through a Tender Offer route in accordance the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the "Buyback Regulations") and the Companies Act 2013 & Rules framed thereunder (hereinafter referred to as the "Buyback"), subject to all other applicable statutory approvals.

The Board of Directors noted the intention of certain members of Promoters and Promoter Group of the Company to participate in the proposed Buyback.

The Board of Directors has constituted a committee called 'Buyback Committee' and delegated its powers to do such acts, deeds, matters, and things as it may, in its absolute, deem necessary, expedient, usual or proper in relation to the proposed Buyback. The Board has appointed Mr. Gaurang Shah, VP - Legal, Corporate Affairs & Company Secretary as the Compliance Officer for the purposes of the proposed Buyback.

The board has fixed Friday, 13th November, 2020 as the Record Date for determining the entitlement and the names of the Eligible Shareholders / Beneficial Owners to whom the letter of offer will be sent and who will be eligible to participate in the Buyback.

Shares of AJANTA PHARMA LTD. was last trading in BSE at Rs.1609.35 as compared to the previous close of Rs. 1574.85. The total number of shares traded during the day was 4955 in over 646 trades.

The stock hit an intraday high of Rs. 1622 and intraday low of 1584.1. The net turnover during the day was Rs. 7933566.

Source : Equity Bulls

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