SMS Pharmaceuticals will buy back shares worth Rs 46.50 crore, in a bid to enhance the shareholder value.
The board of the Hyderabad-based company on Tuesday approved the proposal to buy back the company’s shares at a maximum price of Rs 300 a share (not exceeding 15.5 lakh shares), being within 25 per cent of the paid up share capital and free reserves.
The board will seek the approval of the shareholders of the company.
SMS Pharmaceuticals said, this will be according to the audited balance sheet as at March 31, 2012, in a disclosure to the BSE on Tuesday.
The buy-back is proposed to be carried out from open market through the BSE and the NSE. Centrum Capital Ltd, Mumbai, has been appointed as Merchant Bankers for the proposed buy-back.
In related developments, the board appointed C. Sudhir Babu, Practicing Company Secretary, as scrutiniser for postal ballot and N. Rajendra Prasad, CFO of the Company, as Authorised Person to monitor the entire poll process.
Somasekhar.m@thehindu.co.in