Buyback proposal for Abbott India
Abbott India gained 2.32% today to Rs 548 on BSE after the buy-back committee of the company approved a buy back of 7.97 lakh equity shares of the company via the tender offer method, at a price of Rs 630 a share. The stock hit a high of Rs 577 and a low of Rs 546.20 so far during the day. The stock had a 52-week high of Rs 618.25 on 7 January 2008 and a 52-week low of Rs 481 on 22 January 2008.
The company has an equity capital of Rs 14.47 crore. Face value per share is Rs 10. Foreign promoter Abbott Laboratories through Abbott Capital India holds 65.14% stake in the company (as at end March 2008). The current price of Rs 548 discounts its Q1 March 2008 annualised EPS of Rs 39.12, by a PE multiple of 14.
The buy-back price of Rs 630 a share represents a close to 15% premium to the ruling market price. Abbott India, in an announcement made after market hours yesterday, 9 July 2008 said that the public announcement setting out the timeline for the buyback and other statutory details will be released in due course in accordance with the Securities and exchange board of India (Sebi) (Buyback of Securities) Regulations, 1998. The meeting of the buy-back committee of the board of directors of the company was held yesterday, 9 July 2008.
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