7 sept06 Natco Pharma offer buyback of 10rs share at 150 rs on sept 12th
Natco company secretry says,
"The buyback is being proposed keeping with the company's desire to maximise returns to the investors and enhance the overall shareholder value by returning surplus cash to the shareholder's in an investor friendly manner"
"Natco Pharma plans buyback. The proposed buy back is expected to lead to reduction of outstanding equity for the company in the future thereby creating long term shareholder value for the continuing shareholders. It is also a reflection of confidence of the management in the future growth prospects of the company."
Hindu excerpts
Hyderabad , July 24
Natco Pharma Ltd proposes to go in for buy back of its shares.
The company will hold a board meeting on July 31 to decide on the issue.
According to sources, the company currently has a paid-up equity of Rs 27.17 crore. Following the conversion of the pending foreign currency convertible bonds (FCCBs), its equity would go up to Rs 27.9 crore.
Though the company is yet to finalise the size of the buyback and price, sources said the size would be below 10 per cent of its paid-up equity.
The scrip is currently hovering at around Rs 90 on the bourses with the 52-week high at Rs 167.70 and the 52-week low at Rs 78.25.
On Monday, the scrip gained 4.97 per cent on the BSE to close at Rs 97.15 and was up by 4.9 per cent on the NSE to close at Rs 97.45.
news 2
Natco Pharma's board is meeting on July 31 to mull share buyback. The company's Finance Director Bhaskar Narayana says that the board will decide the price and other things.
Narayana adds that the promoters will not be participating in this buy back; hence, the promoter’s shareholding will not get diluted.
Excerpts from CNBC-TV18's exclusive interview with Bhaskar Narayana:
Q: Could you walk us through the details, the size of the buy back that you are intending and what is the price that you have set out?
A: It is too early to comment on those things because we have convened a board meeting on July 31 to precisely consider the buy back proposal. The board will decide the price and other things.
Q: But you must be having a rough idea of how much money you want to raise and how much dilution you are willing to undertake?
A: The promoters will not be participating in this buyback. So, there is no question of promoter’s shareholding getting diluted. The company will purchase its shares from other than promoters.
As I said the amount and the rate would have to be decided by the board and we cannot say anything on that right now. We will have to wait till July 31.
Q: Have you worked out how much money you want at any rate and for what you are raising this money for?
A: There is no question of raising money here. It is the question of spending money because the company’s money will be used to buy the company shares back.
Q: But how much money is it that you have allocated?
A: It has to be decided by the board, the board has to allocate it.
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Open: 24 Jul 06
Close: 23 Jun 06
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