Aarti Drugs gains 6% as board to consider buyback
Published On: Tuesday, March 16, 2021 | By: Team KnowMyStock
Shares of Aarti Drugs were up 6 per cent at Rs 708 on the BSE in intra-day trade on Tuesday after the pharmaceutical company said its board will consider share buyback on Friday, March 19. A meeting of the Board of Directors of the company is scheduled to be held on Friday, March 19, 2021, to consider the proposal of buyback of the fully paid-up equity shares of the company, Aarti Drugs said in a regulatory filing. The pharma stock has risen 432% in one year but lost 2.12% since the beginning of this year. The market cap of the firm rose to Rs 6,432 crore on BSE. The firm reported a 144.92% rise in Q3 net profit to Rs 68.04 crore against Rs 27.78 crore profit in the corresponding quarter of the previous fiscal.
Buyback refers to the repurchasing of free-float shares of a company by the promoters. In a buyback process, the company pays its shareholders a fixed value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors. The process enables the repurchase of shares from the existing shareholders usually at a higher price than the market price.Companies do buybacks for various reasons such as ownership consolidation plan, undervalued price, or for boosting its key financial ratios making companies look more financially healthy.
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