Ajanta Pharma Surged 7%, after the Announcement of Share Buyback

Shares of Ajanta Pharma saw a surge of 7% after it announced a share buy back of 11.20 lakh shares at the cost of Rs 2,180.30. This will be the third share buy back of the company in three years. Earlier, the company bought its 7.35 lakh shares at the cost of Rs 1,850 per share in 2020. 

The share buy back allows a company to reduce the number of its outstanding shares in the market and increase the shares of its stakeholders at the same time. It can be also done in the case when the company believes that its share price is below the intrinsic value. 

Ajanta Pharma has been performing well throughout the year and surged 40% in total this year. The company has seen smooth growth in its financial performance. 

Ajanta Pharma is a pharmaceutical formulation company that is engaged in the development, manufacture, marketing, and distribution of quality finished dosages.