Sun Pharma announces buyback

Sun Pharmaceutical Industries Ltd, India’s largest drug maker, on Thursday said it will buy back 7.5 million shares from the public at a price of Rs.900 each.

The buyback price, announced after market hours on Thursday, is almost 20% above the company’s last traded price of Rs.751.70 on the BSE.

Sun Pharma said in a statement that the buyback aims to return surplus funds to shareholders and enhance overall returns for them.

The record date for the buyback is 15 July, 2016. The promoters Sun-Pharmahave indicated their intention to participate in the proposed buyback in such a manner that their aggregate shareholding percentage in the company will not fall below their current aggregate percentage shareholding, company said.

As on March 2016, promoters and promoter group held 54.97% stake in the company, while public held 45.02 and the employee trust 0.01%.

Under Securities and Exchange Board of India (Sebi) guidelines, 15% of the buyback offer is reserved for small investors holding shares worth not more than Rs.2,00,000 as on the record date. As on Thursday, Sun Pharma has a market cap of Rs.1.8 lakh crore, according to BSE data.

The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the buyback regulations, Sun Pharma said.

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