Aurobindo Pharma has announced a share buyback worth up to Rs 800 crore through the tender offer route. The buyback will open on April 23 and close on April 29. The company plans to buy back up to 54.23 lakh shares at a price of Rs 1,475 per share, which represents about 0.93% of its total outstanding shares.
Under the buyback entitlement structure, small shareholders will have a higher acceptance ratio. Investors in the reserved category are entitled to 7 shares for every 61 shares held, while those in the general category can receive 2 shares for every 249 shares held. This structure aims to enhance participation for retail investors, although final acceptance will depend on overall subscription levels.
The Rs 800 crore outlay indicates a tactical approach to capital allocation, signaling management confidence in the company’s intrinsic value. The tender offer route allows eligible shareholders to tender shares within the specified window, providing price certainty but involving proportional acceptance.
