Aarti Drugs Limited announces an Equity Buyback for 600,000 shares, representing 0.64% for INR 600 million.
March 19, 2021 at 05:40 am EDT
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Aarti Drugs Limited (BSE:524348) announces a share repurchase program. Under the program, the company will repurchase up to 600,000 shares, representing 0.64% of its issued shares for INR 600 million. The shares will be repurchased at a price of INR 1,000 per share. The purpose of the program is to return surplus cash to its shareholders, to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base, thereby leading to long term increase in shareholders' value, and to give an option to the shareholders holding equity shares of the company, either to sell their equity shares and receive cash or not to sell their equity shares and get a resultant increase in their percentage shareholding, post the buyback offer, without additional investment. The funds for the implementation of the proposed buyback will be sourced out of the free reserves of the company or such other source as may be permitted by the buyback regulations or the Companies Act. The company has determined the record date as April 1, 2021, for the purpose of the buyback program. As of March 12, 2021, the company had 93,200,000 shares in issue.
Aarti Drugs Limited is an India-based company that is engaged in the manufacturing of active pharmaceutical ingredients (APIs), pharma intermediates, specialty chemicals and formulations. The Company operates through pharmaceuticals segment. The Company's APIs products include ciprofloxacin hydrochloride, metronidazole, metformin HCL, ketoconazole and ofloxacin, among others. Its specialty chemicals products include benzene sulphonyl chloride and methyl nicotinate, among others. Its pharma intermediates products include tinidazole, celecoxib, ciprofloxacin, clopidogrel, diclofenac, ketoconazole, raloxifene and zolpidem. Its products under development include itraconazole, fluconazole, dabigatran, ticagrelor, sitagliptin and alpha lipoic acid. The Company's subsidiaries include Pinnacle Life Science Private Limited, Aarti Speciality Chemicals Limited and Pinnacle Chile SPA.