Sun Pharma announced that two important resolutions relating to split and buyback of its equity shares were approved at the EGM held in Mumbai. The shareholders cleared the proposal for splitting the equity shares of the company of face value of Rs. 10/- into equity shares of face value of Rs. 5.
The EGM also cleared a buyback of equity shares (Rs.10/- undivided face value of Rs. 5 sub-divided), subject to the following limits;
A maximum of Rs. 1200 mill, a maximum price of Rs. 750/- per share (or Rs.375/- subdivided share of face value of Rs.5/-),
A cap on the number of shares, 2 million shares of face value of Rs. 10/- (or 4 million shares of face value of Rs.5).
The amount proposed for the buyback, Rs. 1200 million, represents 24.75% of the total paid up capital and free reserves of the Company.
This buyback, through the open market route, is within a 12-month window from the date of passing of the resolution. This move is expected to enhance overall shareholder value and increase the future EPS.
Subsequently the Board of Directors at their meeting fixed the record date as 21st January 2003 for the split of shares.