Dishman Carbogen falls 9% from day's high despite nod for share buyback

Shares of Dishman Carbogen Amcis were locked in 5 per cent lower circuit at Rs 84.30 on the BSE on Friday despite board approval's for a share buyback at a price not exceeding Rs 150 per share. The stock of pharmaceuticals slipped 9 per cent from its intra-day high level of Rs 92.40 on the BSE.

“The board approved the buy-back of equity shares by the Company from open market through stock exchange mechanism for amount not exceeding Rs 72 crore at a price not exceeding Rs 150 per share,” Dishman Carbogen Amcis said in an exchange filing.

In the past nine trading days, the stock has outperformed the market by gaining 39 per cent after the company announced share buyback plan. It hit an all-time low of Rs 63.80 on January 3, 2020.

Prior to that, in 13 trading days starting December 16, 2019, the stock tanked 49 per cent amid reports that the income tax (I-T) department had found unaccounted cash during a search-and-survey operation last month. On December 19, the company said the I-T Department conducted a day-long 'search and survey operation' at the properties of the company.

Rating agency India Ratings & Research ("IndRa") downgraded the credit ratings outlook for long term and short term facilities of the company from "Stable" to "Rating Watch Evolving" ("RWE").

The RWE considers the search operations conducted by income tax authorities at the company's head office and manufacturing sites on December 19, 2019. The rating outlook shall be monitored and resolved within six months, the rating agency said.

Till 12:52 pm, a combined 2.45 million equity shares had changed hands on the counter. There were pending sell orders for 80,574 shares on the NSE and BSE, exchange data shows.