The Ajay Piramal-promoted Piramal Healthcare has announced a exchange of up to 20 per cent of the outstanding share capital of the company at Rs 600 per share. The total spending implicated will be over Rs 2,510 crore. He sold off its main formulation business to Abbott for over Rs 17,000 crore.

The trade in will be done for a maximum of 41.8 million shares which is the 20 per cent of the total, at a premium of 19 per cent over the normal share price of Rs 504 for the last three months. A press release stated that the convert will be completed by February 2011, subject to shareholders’ endorsement.

After in view of various alternatives as well as dividend and buyback of shares, the board of directors has permitted the buyback proposal because it is a more tax efficient method of maximizing value to shareholders.

Analysts said that the proclamation was contrary to market opportunity of getting a fat bonus for everyone, because the company has previously got over Rs 10,000 crore cash as the first installment of the deal with Abbott.