The board of directors of SMS Pharmaceuticals, engaged in the business of APIs and contract manufacturing, has approved the buyback scheme of fully paid up equity shares of Rs.10 each at a price of Rs.300 per share. The maximum buy-back price of Rs.300 per share has been arrived at after considering various factors such as average price of the equity shares of the company on the BSE and the NSE. The company has appointed Centrum Broking Ltd, Mumbai and RLP Securities Pvt Ltd, Hyderabad as merchant banker. SMS scrip moved up sharply by over 12.6 per cent or Rs.27 today on BSE to Rs.247 in the morning session.

The buyback offer will commence from May 20, 2013 and it will remain open upto May 14, 2014 or when the company completes the buyback to the extent of 15,50,000 equity shares or upon exhaustion of Rs.46.50 crore set aside for Buyback, whichever is earlier. This offer will be funded out of the company's current surplus and/or cash balances and internal accruals.

The maximum number of equity shares which can be bought back in accordance with the provisions of Section 77A(c) of the Act are 25,03,800. The maximum number of equity shares to be bought back by the company are 15,50,000 (“Maximum Offer Shares”) being 15.48 per cent of equity shares of Rs.10 each outstanding as at March 31, 2012, and the number of shares to be bought back shall be subject to a minimum of 3,87,500 equity shares.

The equity shares of the company are proposed to be bought back through the methodology of “Open Market Purchases through Stock Exchanges”. The equity shares of the company are listed on BSE and NSE.

SMS Pharma has four manufacturing facilities at Hyderabad, Andhra Pradesh, out of which 3 facilities are US FDA/WHO GMP approved, and one US FDA approved manufacturing facility at Vizianagaram.