Drug major Dr Reddy’s Laboratories today said it has bought back nearly 51 lakh shares for Rs 1,569.41 crore as part of a ‘share buyback’ offer launched earlier this year.
The company has bought back 50,77,504 equity shares at an average price of Rs 3,090.92 per share. The company has thus deployed Rs 1,569.41 crore against the maximum buyback size, Dr Reddy’s Laboratories said in a regulatory filing. “Consequently, the company announces the closure of its buyback,” it added.
In February this year, the company’s board had approved a proposal to buyback shares, subject to the approval of shareholders, for an aggregate of amount not exceeding Rs 1,569.4 crore at a price not more than Rs 3,500 per share under the open market route.
The Hyderabad-based company’s shareholders approved the buyback offer on April 1.
The share buyback offer comes at a time when the drug maker is facing heat from the US Food and Drug Administration (USFDA) for manufacturing norm violations at three of its plants.
In November last year, the company received a warning letter from the USFDA for several violations with regard to current good manufacturing practices (CGMP) in API manufacturing facilities at Srikakulam in Andhra Pradesh and Miryalaguda in Telangana, as well as in oncology formulation manufacturing facility at Duvvada, Visakhapatnam in AP.
Shares of the company were trading at Rs 3,266.80, up 0.81 per cent, on BSE.