Zydus Life's Rs 750 crore share buyback offer to open on June 23

The drug maker on Monday said its Rs 750 crore share buyback plan is scheduled to commence on 23 June 2022 and close on 6 July 2022.

Zydus Lifesciences plans to buyback up to 1,15,38,461 equity shares, comprising 1.13% of the total paid-up equity capital of the company, at Rs 650 per share, for an aggregate amount not exceeding Rs 750 crore.

The drug firm, earlier known as Cadila Healthcare, has fixed 15 July 2022, as the last date for the settlement of bids on stock exchanges which may even happen early, as per a regulatory filing.

The company fixed 2 June 2022 as the record date for the purpose of determining the entitlement of being eligible to participate in the buyback. The promoter group and persons in control of the company have expressed their intentions to participate in the buyback and tender equity shares based on their entitlement. However, the promoters have agreed to offer such number of additional equity shares to ensure that post the buyback the company continues to be in compliance with the minimum public shareholding norms.

The promoter group holds 74.88% stake in the company. Assuming the response to the buyback is to the extent of 100% from all the eligible shareholders, the aggregate shareholding of the promoter group may increase to 74.98% post buyback. The aggregate shareholding of the public shareholders may decrease to 25.02% from 25.12% currently.

Zydus Lifesciences, a leading Indian pharmaceutical company, is a fully integrated, global healthcare provider. It reported 41.5% fall in consolidated net profit to Rs 397.4 crore on a 5.3% increase in total income from operations to Rs 3,863.8 crore in Q4 FY22 over Q4 FY21.

Shares of Zydus Lifesciences rose 0.33% to Rs 353 on Monday.

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