AstraZeneca scrip slumps after buy-back offer
07 July 2010
AstraZeneca Pharma India said on Tuesday it has fixed a floor price of Rs576.10 per share to buy back the entire 10 per cent shares held by non-founders in the company as a step towards voluntary delisting of shares from stock exchanges.
AstraZeneca Pharma AB, the parent company, holds 89.99 per cent in AstraZeneca Pharma India and the latter's board had approved a proposal to delist its shares from stock exchanges on 29 June.
AstraZeneca Pharma India today tanked about 5 per cent in early trade after the news became public.
The floor price for the delisting offer is at a discount of nearly 57 per cent from yesterday's closing price of Rs1,335.10 on the Bombay Stock Exchange.
Shares of AstraZeneca Pharma India fell 4.87 per cent to touch a low of Rs1,270 on the BSE. Witnessing a similar trend on National Stock Exchange, AstraZeneca fell by 4.8 per cent to Rs 1,314.05 from previous close.
The decision to de-list comes on the heels of the government's move to make it mandatory for all listed companies to raise public shareholding to a minimum of 25 per cent.