Dishman surges on Europe acquisition

DALAL STREET SPIKES

Dishman Pharma was up more than 13 per cent in intra-day trades to hit a new high of Rs 729 after the company announced that its board on Friday has approved strategic acquisition of a UK-based contract research firm through its 100 per cent subsidiary, Dishman Europe.

This acquisition will strengthen the business model of the Dishman group. The stock finally ended 9.68 per cent higher to close at Rs 692.30.

Market analysts said, while profit booking was witnessed in other pharma pivotals such as Ranbaxy, Dr Reddy's and Cipla, there was renewed buying in Dishman counter following the acquisition announcement. More than 29 thousand Dishman shares changed hands on BSE on Friday. Dishman focuses on contract manufacturing for MNC pharma companies.

The company recently acquired a Holland-based company for manufacturing phosthanium quats. The stock has firmed up in the past few months on overall rally in the markets. From a low of Rs 551.20 on January 25, the stock is currently trading at Rs 692.30.