Shares of UPL surged as much as 3 percent on Thursday after the company unveiled its share buyback plan. However, with the weakness in the broader market increasing, UPL shares also shed most of their early gains. At 10:20 am, shares of UPL were trading 0.4 percent higher at Rs 691.75 on BSE.

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UPL’s Board of Directors approved the proposal to buyback fully paid-up equity shares of face value of Rs 2 each from the equity shareholders of the company (other than the promoters, the promoters group and persons in control of the Company), for an aggregate amount of not exceeding Rs 1,100 crore being 14.56 percent and 5.71 percent of its total paid-up share capital and free reserves as on 31st March, 2021, for a price not exceeding Rs 875 per share through the open market route, the agrochemical company said in an exchange filing.

"Subject to the market price of the equity Shares being equal to or less than the maximum buyback price, the indicative maximum number of equity shares bought back would be 1,25,71,428 equity Shares, comprising approximately 1.65 percent of the paid-up share capital of the company as of 2nd March, 2022 (on a standalone basis)," the exchange filing added.

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The proposed buyback is subject to approval of the members of the company by way of a special resolution and all other applicable statutory/ regulatory approvals, it added. The company's promoters hold 28.24 percent stake as on February 25.

On Friday, UPL shares raced alongside the top Nifty50 gainers by rising as much as 5 percent. This upswing came after the company announced it would consider buying back its equity shares.

During Q3 FY22, UPL's revenue grew 24 percent Year-on-Year (YoY) to reach Rs 11,297 crore driven by healthy volume growth and better product realisations while net profit rose 18 percent in the reporting quarter to Rs 937 crore and EBITDA grew 21 percent YoY to Rs 2,666 crore.

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(Edited by : Ajay Vaishnav)