Strides Arcolab dips as government rejects FDI proposal

At 0919 hours, shares of Shasun Pharmaceuticals were too slipped 9% to Rs 322, after hitting low of Rs 313 on BSE.

Shares of Strides Arcolab have dipped 5.4% to Rs 1,091 on the BSE in early morning trade after the government has rejected proposal of pharmaceutical company.

“The Press Information Bureau, Government of India, has issued a press release dated June 17, 2015 on the outcome of the Foreign Investment Promotion Board (FIPB) meeting held on May 28, 2015 which stated that our application has been rejected. The Company is awaiting a formal communication from FIPB in this regard,” Strides Arcolab said in a BSE filing.

The company had made an application to FIPB seeking approval for issuing equity shares to non-resident shareholders of Shasun Pharmaceuticals Limited under the proposed Scheme of Amalgamation and the application was considered by the FIPB at their meeting held on May 28, 2015.

At 0919 hours, the shares of Shasun Pharmaceuticals were too slipped 9% to Rs 322, after hitting low of Rs 313 on the BSE. The S&P BSE Sensex was up 0.63% or 170 points at 27,003.

Meanwhile, both these stocks had outperformed the market by gaining 20% each compared to 2.5% decline in the benchmark index till yesterday.