Key Points of Share Buyback Plan:
- Natco Pharma Limited’s Board of Directors approves buyback plan.
- The company can repurchase up to 30,00,000 fully paid-up equity shares.
- Maximum buyback price is set at Rs. 700 per share, totaling no more than Rs. 210,00,00,000.
- The buyback will take place via the “Open Market” route through BSE and NSE.
- Shareholders, excluding promoters and those in control of the company, will be eligible for the buyback.
- The maximum buyback size represents 5.13% and 5.04% of the total paid-up capital and free reserves of the company respectively.
- Additional expenses associated with the buyback are not included in the maximum buyback size approved by the board.
Details of Share Buyback Plan:
Natco Pharma Limited’s Board of Directors has given the green light for a buyback plan, authorizing the company to repurchase up to 30,00,000 fully paid-up equity shares at a maximum price of Rs. 700 per share, totaling no more than Rs. 210,00,00,000.
The buyback will take place via the “Open Market” route through the electronic trading facilities of BSE and NSE, in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, and other applicable provisions. Shareholders of the company, excluding promoters, promoter group, and those in control of the company, will be eligible for the buyback.
The buyback plan of Natco Pharma Limited will result in the repurchase of up to 30,00,000 equity shares, which is equivalent to 1.64% of the total number of paid-up equity shares of the company, at a maximum buyback price of Rs. 700 per share. If the shares are repurchased below this price, the actual number of equity shares bought back could exceed 30,00,000 but will always be subject to the maximum buyback size of Rs. 210,00,00,000.
The maximum buyback size represents 5.13% and 5.04% of the total paid-up capital and free reserves of the company based on the audited standalone financial statements and audited consolidated financial statements of the company as of March 31, 2022, respectively, and is within the statutory limit of 10% of the aggregate of the fully paid-up equity share capital and free reserves of the company under the board approval route pursuant to the Companies Act, 2013 and the Buyback Regulations.
It is important to note that the maximum buyback size approved by Natco Pharma Limited’s board does not include any additional expenses associated with the buyback process. These expenses may include filing fees payable to SEBI, advisors’ fees, stock exchange fees for usage of their platform, brokerage costs, turnover charges, applicable taxes such as buyback tax, securities transaction tax, Goods and Services Tax (if any), stamp duty, public announcement publication expenses, and other incidental and related expenses and charges.
About Natco Pharma:
NATCO Pharma Ltd (NATCO) is a vertically integrated, research and development focused pharmaceutical company engaged in developing, manufacturing, and marketing complex products for niche therapeutic areas.
NATCO has established its presence in all three business segments viz. finished dosage formulations (“FDF”), active pharmaceutical ingredients (“APIs”), Contract Manufacturing Business.
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