Monday, 25 September 2017

Novartis India slips 8% as buyback price disappoints

Novartis

Novartis India slipped 8% to Rs 626 on BSE in the noon deals after the share buyback price announced by the pharmaceutical company disappointed the investors.

The company announced that its board has approved the buyback of 3.45 million equity shares representing 12.26% of the total paid-up equity share capital at a price of Rs 670 per share. The buyback price is 2% lower to its Friday’s closing of Rs 683 on BSE.

The buyback will be done on a proportionate basis through the tender offer and will cost Novartis India nearly Rs 231 crore.  The promoters also intend to participate in the proposed buyback offer.

As on June 30, 2017, promoters held 73.40% stake in Novartis India while the public held 26.6%.

In past one month, the stock had outperformed the market by surging 17% against 2% rise in the S&P BSE Sensex.

The trading volumes on the counter jumped more than three-fold with 130,000 shares changed hands on BSE against an average 42,000 shares were traded daily in past two weeks.

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