Shares of Aurobindo Pharma Ltd. gained 5% to hit a record high on Monday after it announced that its board would meet on July 18 to consider share buybacks.
"This is to inform you that a meeting of the Board of Aurobindo Pharma Limited will be held on Thursday, July 18, 2024, to consider, inter alia, a proposal for buyback of the fully paid-up equity shares of the company and the matters necessary and incidental thereto," an exchange filing by the company said.
This will be the first time the company will be conducting a buyback of its equity shares, according to data on exchanges.
Shares of the company rose as much as 5.09% to a record high of Rs 1,394.35 apiece. It pared gains to trade 3.7% higher at Rs 1,376 apiece as of 10:59 a.m. This compares to a 0.3% advance in the NSE Nifty 50.
The stock has risen 27% on a year-to-date basis and 67.55% in the last 12 months. Total traded volume so far in the day stood at two times its 30-day average. The relative strength index was at 73.85, indicating that the stock may be overbought.
Out of the 28 analysts tracking the company, 21 maintain a 'buy' rating, four recommend a 'hold,' and three suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 3.3%.
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