Elder Pharma rebounds by over 20% on heavy volumes

The stock has locked in upper circuit of 10% at Rs 248, bouncing back of 22% from day's low of Rs 203 on BSE.

Elder Pharmaceuticals is locked in upper circuit of 10% at Rs 248, bouncing back of 22% from day’s low, on back of heavy volumes.

The stock opened at Rs 203, its lowest level since May 2009 on BSE has seen huge trading activities on the counter.

A combined 1.83 million shares representing 9% of total equity of the company changed hands on the counter till 1419 hours compared to an average sub 200,000 shares that were traded daily in past two weeks. There are pending buy orders for 46,599 shares on BSE and NSE.

The stock of pharmaceutical company has tanked 46% in past five trading sessions from Rs 373 after the company said institutional investor invoked pledge shares of the company in open market.

“Ratnakar Bank Limited have invoked pledge of our company’s shares and have on 10th and 11th instants sold some of them in the market,” Elder Pharma said in regulatory filing.

This has affected the market price of the shares and the volume also has increased. However, kindly note that neither the promoters nor persons acting in concert have sold any shares in the market, it added.