Dishman Carbogen hits the roof on buyback plan

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Dishman Carbogen Amcis was locked in an upper circuit of 5% at Rs 66.95, snapping a four-day losing streak after the company said that its board of directors will consider buyback of shares on 16 January 2020.

The stock tanked 25.38% in last four trading sessions to Rs 63.80 on 3 January 2020 from its previous closing high of Rs 85.50 on 31 December 2019.

Recent selling was triggered by media reports that the income tax (I-T) department found unaccounted cash during a search-and-survey operation last month. The state I-T department reportedly found a trail of unaccounted for cash of more than Rs 160 crore. The total cash trail in the case is Rs 327 crore, reports added.

I-T officials visited the company's offices and manufacturing sites on 19 December 2019 in connection with search under Section 142 of the Income-Tax Act. The company extended full co-operation to the officials during the search and provided all the information sought. The search operation concluded on 25 December 2019.

Last month, Motilal Oswal Asset Management Company sold 16.45 lakh shares of Dishman Carbogen on NSE at an average price of Rs 73.79. It sold 8.12 lakh share of the company on BSE at an average price of Rs 73.62. Both the transaction took place on 24 December 2019.

Dishman Carbogen Amcis' consolidated net profit declined 6.5% to Rs 41.16 crore on 4% rise in net sales to Rs 449.79 crore in Q2 September 2019 over Q2 September 2018.

Dishman Carbogen Amcis offers a portfolio of drug development and commercialization services to the pharmaceutical and biopharmaceutical industries at all stages of drug development.

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