Dr Reddy’s Laboratories Ltd has come out with a public announcement for its share buyback offer with a maximum price of ₹3,500 a share. The maximum offer price at a premium of 15.5 per cent to the Monday’s closing price of ₹,3028.89.
25% of paid-up capital According to the schedule of the buyback offer, the process will begin on April 18 and the number of shares to be acquired through the buy-back process would not exceed 25 per cent of the total paid-up equity capital of the company.
The holders of the ADS may participate in the buyback by withdrawing ADS from the depository facility, acquiring equity shares upon such withdrawal and then selling those shares back to the company in the open market in India.
The company said it has a strong cash flow position and the buyback proposal aims to effectively utilise the surplus cash available.