FDC rises 8% as board to review share buyback proposal


FDC shares jumped 8% to Rs 319 on BSE in Monday’s intraday trading after the company said its board would meet on Feb. 9, 2022 to consider the proposed buyback of shares in the company. company through a public takeover bid.

At 09:26; The pharmaceutical company’s stock traded up 7% at Rs 314.75, against a 0.5% decline in the S&P BSE Sensex. Over the past six months, the stock is down 14%, versus an 8% rise in the benchmark. It is down 21% from its 52-week high of Rs 404.90 reached on June 15, 2021.

Buyout is a corporate action in which a company buys back its shares from existing shareholders, usually at a price above the market price. The primary purpose of a stock buyback program is to stop the decline in value of a stock by reducing the supply of the stock, which essentially drives up the stock price through a best price/earnings (P/E) multiple.

As part of a takeover bid, shareholders will have the option of tendering (or tendering) some or all of their shares Within a certain period and at a premium to the current market price, this premium compensates investors who tender their shares rather than keeping them.

Meanwhile, in a separate regulatory filing, the FDC announced that the company’s Goa-based solid oral dosing facility has received a Good Manufacturing Practices (GMP) certificate and is continuing with its status. approved by PIC – NPRA (National Pharmaceutical Regulatory Agency), Malaysia.

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