The Indian multinational pharma company, Sun Pharmaceutical Industries Ltd rose in share price intraday at Rs395.60 on Tuesday after the company today approved a share buyback offer.
Accordingly, the Company has approved the Rs.1700-Cr share buyback offer at a price maximum of Rs425-per share from the open market.
The buy-back reportedly would be 4-Cr equity shares which represent 1.67-pc the total number of equity shares of the company.
Share buybacks are executed by the rich companies to decrease its number of outstanding shares in the share market, by buying back a part of shares from the shareholders at a price higher than the market value. Track the best stock to buy Tips visit the link.
At 3-pm, looking at the market trends, benchmark indices have wiped all early gains and were trading in the red. The Sensex lowered by 1.62 percent at 30881, while the Nifty stood 9002-level, down by 2.1 percent.
In the other indices, the Nifty FMCG index has seen buying led by Hindustan Unilever, Godrej Consumer Products, Imami, and Nestle India.
Out of 50 stocks in the Nifty, 14 stocks are trading in the green while the remaining 36 nos witness selling.
The Nifty Pharma Index was observed to have touched at 7,015.50, up by 56 points with major gains in Sun Pharma, Cipla, Lupin, Aurbindo Pharma and Cadila Health care, between 4 and 2 percent each.
Shares of Sun Pharma, after touching intraday peak at Rs.395.60-per share, is currently quoting at 369.40, up by 0.23 percent from the previous closing.