Natco Pharma defers buyback schedule
Natco Pharma Ltd (NPL), the Hyderabad-based pharma company that has recently announced its decision to go in for buyback of shares, on Monday informed the stock exchanges that it has now decided to defer the schedule.
The buyback schedule was to begin on September 12 and continue either for a year or the funds earmarked were exhausted. The company proposes to buyback its shares of Rs 10 each at a maximum price of Rs 150 per share. It has earmarked funds of Rs 7 crore for the buyback process.
Fulfilling formalities
The company told the stock exchanges that its promoters are now in the process of complying with additional requisite statutory formalities and approvals related to SEBI regulations on substantial acquisition of shares and takeovers.
Though the buyback of shares does not attract SEBI guidelines on substantial acquisition, the company and promoters were advised by the manager to the buyback offer to comply with certain additional statutory formalities, according to the Natco Company Secretary, Mr M. Adinarayana.
He told Business Line that the company and promoters are in the process of complying with the additional statutory formalities. In view of this, the original schedule of activity as disclosed in the public announcement has now been kept in abeyance. He said the company and promoters expect to receive the approvals shortly and the revised schedule would be announced thereafter.
The buyback was aimed at maximising returns to investors and enhance overall shareholder value by returning surplus cash to shareholders in an investor-friendly manner, the company had announced earlier.
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