Jagsonpal Pharmaceuticals Ltd. shares gained over 12% on Thursday, March 12, following the board's approval of a share buyback program. According to reports from CNBC TV18, the pharma company's board has approved a buyback of up to 16 lakh equity shares at a price of ₹250 each via the tender offer route. The stock reached an intraday high of ₹201.5 and was trading at ₹193.85 around 2:20 pm, representing an 8.5% gain. As per data available on BSE, this represents the first instance of the company approving a share buyback proposal, marking a significant milestone in its corporate actions history.
The buyback proposal involves a maximum offer size of ₹40 crore, representing 18.35% of the paid-up equity share capital and free reserves of the company. As reported by CNBC TV18, the buyback represents 2.39% of the company's paid-up equity capital. The program will be funded through the company's internal accruals and will be executed through the tender offer route. The buyback price of ₹250 per share represents a premium to the current market price, indicating the company's confidence in its valuation.
Following the buyback completion, the promoter and promoter group shareholding is expected to increase to 68.9% from the current 67.2%, while public shareholding will decrease to 31.1% from 32.8% at present. According to the exchange filing, this marks the first instance of the company approving a share buyback proposal, as reported by CNBC TV18. The buyback will result in a significant shift in ownership structure, with promoter shareholding increasing by 1.7 percentage points while public shareholding decreases by 1.7 percentage points.
According to data available on BSE, this represents the first share buyback proposal approval by Jagsonpal Pharma. As reported by CNBC TV18, the company had previously issued bonus shares in a 3:1 proportion in July 2004, and conducted a stock split in January last year, dividing shares with face value of ₹2 into shares of face value ₹1. The company had also declared dividends of ₹2.5 in September 2025, along with ₹5 each in September 2004 and August 2023. In 2021, the company declared two dividends of ₹4 and ₹1 in October and September respectively.
