Aurobindo Pharma shares zoomed over 6 percent to a fresh record high of Rs 1,409.9 on July 15 as investors lapped up the stock ahead of its board meeting to consider a buyback plan on July 18.
If approved, this will mark the first-ever buyback program to be executed by the drugmaker. The buyback of equity shares could either be through the tender offer route or through the open market route.
At 12.45 pm, shares of Aurobindo Pharma were trading at Rs 1,402.8 on the NSE. The news of a probable buyback also tipped off a spike in volumes in the counter as 45 lakh shares changed hands on the exchanges so far, three times the one-month daily traded average of 15 lakh shares.
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Shares of Aurobindo Pharma have also delivered over 90 percent returns in the past year, thanks to the improving prospects of generic drugmakers amid easing price pressure and drug shortages in the US market.
Aside from the current discussions over a buyback, the company split its shares and issued a bonus share in 2015. Since then, there have been no further bonus issues by the company, or a stock split. In between, Aurobindo Pharma has paid interim dividends to shareholders ranging between Re 1 to Rs 4.5 per share. The highest dividend of Rs 4.5 per share was paid in 2022, based on available records.
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