Amrutanjan Health Care Share Rally 15% After Share Buyback Approval of Rs 28.80 Cr

Amrutanjan Health Care is a small cap stock that deals in the pharmaceutical sector. The stock opened today on the BSE at Rs 672 apiece and soon clocked an intraday high of Rs 774.75 during the morning deals logging in a gain of 15.29%. While writing this copy the shares of Amrutanjan Health Care were trading at Rs 755 apiece with an upside gap of 13.00% from the previous close of Rs 668.15. Heaving buying demand was witnessed in the stock after the company approved buyback proposal of Rs 28.80 Cr on Friday.

Amrutanjan Health Care on Friday approved sharebuyback at a price of Rs 900 per equity share for an aggregate amount not exceeding Rs 28.80 Cr. "The resultant Equity Shares to be bought back at the Buyback Offer Price shall not exceed 3,20,000 Equity Shares, representing 1.10% of the total number of Equity Shares in the total paid up equity capital of the Company," said Amrutanjan Health Care in a regulatory filing on Friday. The buyback proposal of Rs 900 per share implies a health upside premium of 19.20% at the stock's current market price of Rs 755 apiece.

"Pursuant to Regulation 42 of the Listing Regulations and Regulation 9(i) of the Buyback Regulations, tire Company has fixed Thursday, July 13, 2023, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to paiticipate in the Buyback," said Amrutanjan Health Care in a stock exchange filing.

The stock made a 52-week-high of Rs 899.95 on (30/06/2022) and a 52-week-low of Rs 552.85 on (31/03/2023). During Q4FY23, the company reported promoter stake of 50.04% and public shareholding of 49.79%.

Commenting on the outlook of the stock, A R Ramachandran, Co-founder & Trainer - Tips2trades said "Amrutanjan Healthcare, despite having a below par FY23 earnings is overvalued and overbought from a short term perspective with next resistance at 769 on the Daily charts. Short term investors can tender shares on buyback offer as a correction till Daily support of 608 looks likely."

Nirav Karkera, Head of Research, Fisdom said "The company's struggling share prices, worsened by financial weaknesses and whistleblower allegations, received a welcome boost from a recent buyback announcement. The announcement's notable highlight was the substantial premium offered over the current market price, reflecting the company's confidence in future growth and suggesting potential undervaluation. However, the limited number of shares available for repurchase could limit gains for existing investors. While positive for current shareholders, this development alone may not be compelling enough to attract new investors seeking immediate growth. Prospective investors should carefully consider the company's overall prospects before making investment decisions."

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