Tomorrow is the start of Zydus Lifesciences’ share buyback

Share buybacks for a total of up to 750 crore were authorised by Zydus Lifesciences.

The 750 crore share repurchase programme from Zydus Lifesciences will begin on June 23 and run until July 6 of the same year. The corporation plans to repurchase shares at a price of 650 rupees per equity share.

The request to repurchase up to 1.13 percent of the firm’s total paid-up equity share capital—or slightly more than 1.15 crore shares—for a total of up to 750 crore has been approved by the board of the company. A proportionate basis will be used for the share buyback.

The pharmaceutical company, formerly known as Cadila Healthcare, has set July 15, 2022, as the final deadline for the settlement of bids on stock exchanges, though this date may potentially come sooner.

The company also stated that, according to the most recent audited standalone and consolidated financial statements of the company as of March 31, 2022, the buyback size represents 6.85 percent and 4.36 percent of the aggregate of the total paid-up equity share capital and free reserves, respectively.

The record date for establishing the entitlement and names of equity shareholders who would be entitled to participate in the repurchase is June 2, 2022, according to the business.

Except for shareholders who may be specifically prohibited from participating under the applicable laws by appropriate authorities, all equity shareholders/beneficial owners of the equity shares, including promoters, who hold shares as of the record date, will be eligible to participate in the buyback.

An action taken by a corporation to repurchase its own outstanding shares from its current shareholders, also known as a share buyback or share repurchase, typically at a premium to the current market price Returning money to shareholders in this manner may be an alternative tax-efficient method. By reducing the number of shares in circulation, share buybacks can raise share prices and earnings per share (EPS).

Zydus Lifesciences shares have down over 45 percent in the past year, and the pharmaceutical stock is down over 27 percent so far in 2022 (YTD), compared to a 12 percent decline in the benchmark Sensex during the same period.

Higher expenses and one-time inventory related charges harmed the pharmaceuticals firm’s consolidated net profit, which fell 41% to 397 crore in the fourth quarter ended March. Its operating revenue increased to 3,863.8 crore from 3,670 crore the previous quarter.