The promoters of Novartis India will buyback seven per cent of shares in the near future. In May, the company had proposed a buyback of its shares at not more than Rs 250 per share. "Novartis India is having funds in excess to its requirements in other expansion plans, which could be effected into buyback," said Asha Mirchandani, Executive Finance Director, Novartis India.
As per the current shareholding pattern, the foreign promoters of Novartis India hold the maximum of 50.93 per cent stake in the company consisting of 16277437 shares in total, 20.04 per cent of the stake consisting of 6405283 shares are held by banks and financial institutions, and the balance 29.03 per cent stake consisting of 9278077 shares is held by private corporate bodies, Indian public, NRIs & OCBs, and others.
Even though the company did well sales wise for the financial year ending March 2003 at Rs. 471.7 crore compared to Rs. 461.2 crore year ago, its profit after tax declined to Rs. 62 crore for FY 03 compared to Rs. 65.3 crore the year ago.
In FY 03, the number of employees of the company increased to 1,023 compared to 990 the previous year.
Pharmaceuticals contributed to 62 per cent of the overall sales of Novartis India, followed by generics at 21 per cent, OTC at 9 per cent and animal health at 8 per cent, for FY 2003. Similarly pharmaceuticals contributed to 75 per cent to the profits of the company followed by generics at 11 per cent, OTC at 5 per cent and animal health at 9 per cent.