Divi's Lab gains on FTSE inclusion

Divi's Laboratories rose 1.21% to Rs 1,007 at 14:16 IST on BSE on reports the company's shares will be included in the FTSE Asian Health Care Index starting 23 September 2013.

Meanwhile, the BSE Sensex was down 22.34 points, or 0.11%, to 19,759.54.

On BSE, 20,000 shares were traded in the counter compared with average volume of 14,741 shares in the past one quarter.

The stock hit a high of Rs 1,034.80 and a low of Rs 1,005.60 so far during the day. The stock hit a 52-week low of Rs 905 on 5 August 2013. The stock hit a 52-week high of Rs 1,233 on 30 November 2012.

The stock had underperformed the market over the past one month till 12 September 2013, sliding 1.49% compared with the Sensex's 4.41% rise. The scrip had also underperformed the market in past one quarter, rising 2.70% as against Sensex's 3.89% rise.

The large-cap company has an equity capital of Rs 26.55 crore. Face value per share is Rs 2.

According to reports, FTSE assigned 30% investment weightage to Divis Laboratories shares on the Asian Health Care Index. Index changes will be applied after the close of Friday, 20 September 2013 and will be effective on Monday, 23 September 2013.

An inclusion in global benchmark indices such as FTSE prompts buying from passive trackers of the FTSE indices.

FTSE, which is a part of the London Stock Exchange Group, is a world-leader in providing global index and analytical solutions. FTSE indices are used extensively by a range of investors such as consultants, asset owners, fund managers, investment banks, stock exchanges and brokers.

Divi's Laboratories' net profit rose 4.4% to Rs 174.71 crore on 10.1% growth in net sales to Rs 515.88 crore in Q1 June 2013 over Q1 June 2012.

Divi's Laboratories' product portfolio comprises generic active pharmaceutical ingredients (APIs) and custom synthesis of APIs, intermediates and specialty ingredients for innovator pharma giants. Custom synthesis also includes peptide building blocks (protected amino acids).

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