Ajanta Pharma to consider share buyback on March 10

Ajanta Pharma will consider a proposal for a share buyback on March 10, the company said in a stock exchange filing on March 6.

"... We wish to inform you that the Board Meeting of the Company is scheduled to be held on Friday, 10th March 2023 (“Board Meeting”), inter-alia, to consider approving the proposal for buyback of the equity shares of the Company and matters related / incidental thereto," the pharmaceutical company said.

The move comes a little over a month after Ajanta Pharma reported 29.86 percent year-on-year drop in net profit at Rs. 134.51 crore in the December quarter of FY23.

A company repurchases shares from shareholders during a buyback, usually at a premium from the prevailing market price. Buybacks are an alternative tax-efficient way to return money to shareholders and the objective is to also help arrest the fall in the value of the stock.