Mangalam Drugs locked lower circuit for 10 straight trading sessions

In past two-weeks, the stock tanked 40% to Rs 265 from its 52-week high of Rs 442 touched on December 8.

Shares of Mangalam Drugs & Organics have locked in lower circuit for the 10 straight trading sessions, down 5% at Rs 265 on the BSE.

In past two-weeks, the stock of pharmaceutical company tanked 40% from its 52-week high of Rs 442 touched on December 8.

Till 11:52 a.m. a combined 417,700 equity shares changed hands and there were pending sell orders for 142,975 shares on the BSE and NSE.

According to disclosure filed by the company, the promoters had sold nearly two lakh shares worth of Rs 6 crore through open market during last week.

Shree Rasbihari Trading & Investment Pvt Ltd and Chandrakanta Murlidhar Dhoot had disposed 173,896 shares amounting of Rs 5.71 crore of Mangalam Drugs between December 16 and 17, the BSE data shows.

On November 16, 2015, the company’s board had allotted 1.2 million equity shares on conversion of 1.2 million share warrants of Rs 10 each at a premium of Rs 55 per share out of the total 2.65 million warrants allotted to promoter group on preferential basis.

Meanwhile, before stock starts downfall, the market value of the company surged 22 times or 2,110% from Rs 20.05 to Rs 442.

Ipca Laboratories, which held 10.58% stake in Mangalam Drugs at the beginning of the current calendar year, had sold its entire holding in the company during first half of 2015, the shareholding pattern data shows. Since June 2015, the stock rallied 780% from Rs 58.