Panacea Biotec dips 13% in two days after Serum Institute cuts stake

On December 3, 2020, Serum Institute of India Private Limited sold 309,559 equity shares, representing 0.50 per cent equity of Panacea Biotec, at Rs 243.32 per share

Shares of Panacea Biotec dipped 8 per cent to Rs 214 on the National Stock Exchange (NSE) on Friday, falling 13 per cent in the past two trading days, after Serum Institute of India sold its stake in the company via open market. The stock slipped 19 per cent from its 52-week high level of Rs 265 touched in intra-day trade on December 3, 2020.

On Thursday, Serum Institute of India Private Limited sold 309,559 equity shares, representing 0.5 per cent equity of Panacea Biotec, for Rs 7.53 crore. The Cyrus Poonawalla Group’s vaccine manufacturer sold these shares at price of Rs 243.32 per share via block deal on the NSE, the exchange data shows. The names of the buyers were not ascertained immediately.

As of September 2020, Serum Institute of India Private Limited held 4.92 million or 8.03 per cent stake in Panacea Biotech. Adar Cyrus Poonawalla held 3.16 million or 5.15 per cent holding in the company, the shareholding pattern data shows.

Serum Institute of India was founded in 1966 by Dr. Cyrus Poonawalla with the aim of manufacturing life-saving immuno-biologicals, which were in shortage in the country and imported at high prices. It is  now the world's largest vaccine manufacturer by number of doses produced and sold globally (more than 1.5 billion doses) which includes Polio vaccine as well as Diphtheria, Tetanus, Pertussis, Hib, BCG, r-Hepatitis B, Measles, Mumps and Rubella vaccines.