The board of directors of Ajanta Pharma has approved a buyback of up to 11,20,000 fully paid-up equity shares of the company at a price of Rs 2,550 per equity share payable in cash.

The total pay-out towards buyback of shares will be not exceeding Rs 356 crore (equity shares buyback consideration not exceeding Rs 286 crore plus buyback tax not exceeding Rs 70 crore) on a proportionate basis through the tender offer process.

This buyback represents 1.29% of the total number of equity shares of the company and 9.89% of the paid-up share capital and free reserves of the company as per the audited financial statements for the financial year ended on 31 March 2021.

The record date for the same has been fixed as 14 January 2022.

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.

The company's consolidated net profit rose 15.11% to Rs 195.94 crore on a 23.59% increase in sales to Rs 884.80 crore in Q2 FY22 over Q2 FY21.