Natco Pharma will consider a proposal for a share buyback on March 8, the company said in a stock exchange filing on March 2.
The board of directors would consider a proposal for the buyback of fully paid-up equity shares of the company of face value of Rs 2 each, the company said .
"... it is hereby informed that, a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, the 8th day of March 2023, inter alia, to consider a proposal for buyback of fully paid up equity shares of the Company of face value of Rs. 2 each as well as matters related/ incidental thereto ....," the pharmaceutical company said.
The move comes within weeks of the firm reporting a 22.51 percent year on year drop in net profit at Rs. 62.30 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.
Natco Pharma was in the news recently when it submitted a new application with the US health regulator for marketing the generic version of Olaparib tablets, used in treating ovarian, breast, pancreatic and prostate cancers.
On March 2, Natco Pharma shares closed 2.69 percent higher from the previous close at Rs 553.20 on the National Stock Exchange.
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