Share price of Eris Lifesciences closed higher in trade today after the firm received exemption from tax on share buyback. Eris Lifesciences share price rose up to 4.8% to Rs 485 compared to the previous close of Rs 462.80 on BSE. However, the stock pared some gains to close 2.70% or 12.50 points higher at Rs 47.50. It opened with a gain of 3.07% at Rs 477 today.
The mid cap stock has lost 25.54% during last one year and fallen 30.5% since the beginning of this year. However, the stock has gained nearly 16% in last one month. On July 5, 2019 the firm announced it would buy back up to 1,739,130 equity shares of face value of Re 1/-each fully paid up at a price of Rs. 575 per equity share aggregating up to Rs 100 crore.
The firm said, "The relief from the applicability of buyback tax previously extended by the government to listed companies which had made a public announcement 'before 5th July 2019' has, in terms of the language of the Taxation Act December 2019, become available to companies which had made a public announcement 'on or before July 5, 2019' (thereby covering the Public Announcement made by the Company). The company shall now take up this development before the applicable regulator and after obtaining the necessary clearances and approvals proceed with the buyback at the earliest."
The firm is engaged in manufacturing, marketing and selling of generics within the chronic and acute categories of the pharmaceutical market. The company operates within various areas through its seven focused divisions: Eris, Nikkos, Adura, Montana, Inspira, Victus, Eris Kinedex, Eterna, and Altiza.
By Aseem Thapliyal