Share price of Amrutanjan Healthcare spiked over 14 percent on June 30, a day after the company announced a buyback of 3.2 lakh equity shares at an offer price of Rs 900.
The offer price indicates 35 percent premium to June 28 closing price of Rs 667.90.
At 10:45 am, the stock was quoting at Rs 766, higher by 14.69 percent from previous close. Trading volumes at 1.3 million shares were over 14 times the 20-day average volumes.
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In a communique to the exchanges, the company said it will buyback 3,20,000 equity shares, representing 1.10 percent of total stake, at a price of Rs 900 payable in cash, for an aggregate amount not exceeding Rs 28.80 crore.
The buyback will be done through the tender route and July 13 has been fixed as the record date, it said.
The stock that had been rangebound for the past four months saw a spike after the buyback announcement. It is now 9 percent away from its 52-week high level.
Amrutanjan Healthcare's financial performance has been weak over the last two quarters. It posted net profit decline of 20 percent YoY and 46 percent YoY in Q4 FY23 and Q3 FY23, respectively. However, the management is hopeful that this is the bottom and that the category will go back to historical growth rates of 6-8 percent in FY 24.
In February, the Chennai-headquartered company, popular for its pain relief products, received an anonymous whistleblower complaint alleging lapses by certain senior management employees, including undue enrichment through marketing, advertising and procurement activities, ethical concerns, and conflict of interest.
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