SMS Pharma up and about

SMS Pharma is buzzing today, up currently 2.27% at Rs.225, its intra day high point. Volumes are muted at 255 shares changing hands and market cap stands at Rs.225 crore.

The stock is up after the company announced that it will buy back shares from the open market, at a maximum price of Rs.300 per share, much higher than the current market price and much higher than its 52-week high of Rs.239.95.

The buy back is being done in a bid to enhance shareholder value and it will buy back shares not exceeding 15.5 lakh shares, being within 25% of the paid up share capital and free reserves. The buy-back is proposed to be carried out from open market through the BSE and the NSE. Centrum Capital Ltd, Mumbai, has been appointed as Merchant Bankers for the proposed buy-back. Promoters currently hold 54.02% stake.