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Natco Pharma fixes Rs 150 ceiling for buyback
Natco Pharma Ltd, the Hyderabad-based Rs 193-crore pharma company, has decided to buyback its shares of Rs 10 each from the open market at a price not exceeding Rs 150 per share. The buyback process would begin on September 12.
Natco Pharma Ltd , the Hyderabad-based Rs 193-crore pharma company, has decided to buyback its shares of Rs 10 each from the open market at a price not exceeding Rs 150 per share. The buyback process would begin on September 12.
Towards this, the company has earmarked Rs 7 crore, which represents around 5.72 per cent of the total paid-up equity capital and free reserves of Rs 122.38 crore as on March 31, 2006. It has appointed the Mumbai-based stock broking firm Fortune Financial Services (India) Ltd.
"The buyback is being proposed keeping with the company's desire to maximise returns to investors and enhance overall shareholder value by returning surplus cash to the shareholders in an investor-friendly manner," the Natco Company Secretary, Mr M. Adinarayana, said.
According to him, the company has accumulated free reserves of Rs 95.21 crore and satisfactory liquidity. The proposed buyback is expected to lead to reduction of outstanding equity of the company in future, thereby creating long-term shareholder value for the continuing shareholders. It is also a reflection of confidence of the management in the future growth prospects of the company, he said.
According to him, the company has accumulated free reserves of Rs 95.21 crore and satisfactory liquidity. The proposed buyback is expected to lead to reduction of outstanding equity of the company in future, thereby creating long-term shareholder value for the continuing shareholders. It is also a reflection of confidence of the management in the future growth prospects of the company, he said. 
