The buyback will be on a proportionate basis through a tender offer route. The company has fixed 13 November 2020 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares.

Meanwhile, the drug maker announced its Q2 September 2020 results today. On a consolidated basis, the company's net profit increased 46.29% to Rs 170.22 crore on a 11.38% rise in revenue from operations to Rs 715.91 crore in Q2 September 2020 over Q2 September 2019.

Profit before tax (PBT) jumped 54.27% to Rs 249.24 crore in Q2 September 2020 over Q2 September 2019. Current tax expense surged 105.55% to Rs 82.59 crore in Q2 September 2020 as against Rs 40.18 crore in Q2 September 2019.

EBITDA rose 54% to Rs 274 crore in Q2 September 2020 over Q2 September 2019. EBITDA is at 38% of revenue from operations.

The company's India sales were at Rs 202 crore, down 1%. Total exports in Q2 September 2020 were at Rs 499 crore, a growth of 12% year-on-year. During Q2 September 2020, R&D expenses declined 27.5% to Rs 29 crore (4% of revenue) from Rs 40 crore in Q2 September 2019.

The board has approved payment of interim dividend of Rs 9.50 per equity share. The record date is on 13 November 2020.

Ajanta Pharma is a speciality pharmaceutical formulation company having branded generic business in India and emerging markets, generic business in US and institution business in Africa.

Shares of Ajanta Pharma rose 2.19% to Rs 1,609.35 on BSE.