It is not necessary that promoter participation in buyback is a negative sign. Granules’ promoters have a pledge on ~4.45% shares as of June 2022 (source: ValueResearch). If the money from buyback is used to release the pledge then it bodes well for the stability of the promoter’s holdings.
More than the promoter participation, I find Granules’ buyback a bit difficult to understand given that they have 1000 crores debt on their books.
Not sure why debt reduction hasn’t been given a priority if Granules has free cash, especially in the current environment of rising interest rates.
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