This Pharmaceutical Company Proposes Buyback of Equity Shares; Shares Rise Over 5%

On March 12, 2026, the Board of Directors of Jagsonpal Pharmaceutical Limited approved a proposal to buy back up to 16,00,000 fully paid-up equity shares. This will be carried through the tender offer method, which would be subject to shareholders' approval.

The buyback is being offered at a price of Rs 250 per share, representing a 40 per cent premium to the current market price. The total consideration for the buyback is estimated at Rs 40 crore. The increase will raise promoter shareholdings from the current 67.2 per cent to 68.9 per cent, assuming buyback of 16 lakh equity shares. This represents 2.4 per cent of the total equity shares of the Company and 7.3 per cent of the non-promoter shareholding of the company.

The proposed buyback will be carried out for a total outlay of up to Rs 40 crore, which corresponds to approximately 18.4 per cent of the company’s total paid-up equity share capital and free reserves, based on the latest audited financials as of March 31, 2025.

It has been confirmed that the promoters will not participate in this buyback.

What are the major Reasons for the proposed Buyback?

• The Company operates an asset-light business model, which requires minimal capital to scale up, except for inorganic initiatives.
• The Company has added over Rs 142 crore of free cash between 2021-22 and 2024-25, despite increased dividends and Rs 95 crore deployed for acquisitions.
• As of December 31, 2025, the Company has free cash of Rs 176 crore.
• The Company added Rs 30 crore of free cash during the nine months ended December 31, 2025 and also paid a dividend of Rs 17 crore.
• With the recent regulatory changes allowing M&A funding by Banks, the company intends to use a blend of equity and debt for any inorganic growth opportunity.
• The proposed buyback is expected to lead to an improvement of approximately 400 basis points in ROCE.

In a statement, Manish Gupta, Managing Director of Jagsonpal Pharmaceuticals Ltd, said:

“The proposed buyback demonstrates the company’s continued commitment to enhancing shareholder value and optimising its capital structure. This is intended to reward shareholders and is expected to improve key metrics, including earnings per share and return on capital employed, while maintaining sufficient capital to support the company’s ongoing growth initiatives, including exploring inorganic initiatives.”

Jagsonpal Pharmaceuticals Ltd Share Price Performance

The share price of the company gained despite market weakness. As of 12 March 2026, the share closed at Rs 189.61, up Rs 10.37 or 5.79 per cent from the previous close of Rs 179.24. The stock opened at Rs 179.42 and traded in a wide range, hitting a high of Rs 201.50 and a low of Rs 170.94 during the day.

Despite recent positive momentum in Intraday trading, the company has delivered a year-to-date (YTD) decline of 1.31 per cent, while over the past year, the share has fallen by 9.35 per cent.

About Jagsonpal Pharmaceuticals Ltd

Jagsonpal Pharmaceuticals Ltd is a leading pharmaceutical company with a proven track record of over four decades in the Indian pharmaceutical market. The Company has a portfolio of drugs focusing on Gynaecology, Orthopaedics, Dermatology and Child-care segments. Over the years, the Company has successfully built multiple brands that today hold market-leading positions in their respective segments.

Disclaimer: The article is for informational purposes only and not investment advice.