Natco Pharma gains after board considers raising FII limit

Natco Pharma rose 1.08% to Rs 720 at 10:44 IST on BSE after the company's board considered increasing foreign institutional investors' investment limit in the paid up capital of the company.

The company made the announcement on Saturday, 19 October 2013.

Meanwhile, the BSE Sensex was down 14.85 points, or 0.07%, to 20,868.04.

On BSE, 8,628 shares were traded in the counter compared with average volume of 19,109 shares in the past one quarter.

The stock hit a high of Rs 728.10 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 711.10 so far during the day. The stock hit a 52-week low of Rs 367.90 on 31 October 2012.

The stock had outperformed the market over the past one month till 18 October 2013, rising 14.50% compared with the Sensex's 4.61% rise. The scrip had also outperformed the market in past one quarter, gaining 35.83% as against Sensex's 3.75% rise.

The small-cap company has an equity capital of Rs 31.37 crore. Face value per share is Rs 10.

Natco Pharma said that its board considered a proposal of increasing the limit of shareholding by registered foreign institutional investors (FIIs) upto 49% of the paid up capital of the company.

FIIs, at the end of September 2013, controlled 8.17% stake in the company, while promoters holding stood at 56.62%.

The board also considered a proposal of issuing 24 lakh equity shares on a preferential basis at Rs 638.40 each to CX Securities, Mauritius.

The company will hold an extraordinary general meeting (EGM) of shareholders on 14 November 2013.

Natco Pharma's consolidated net profit rose 27.6% to Rs 21.78 crore on 21.5% growth in net sales to Rs 167.39 crore in Q1 June 2013 over Q1 June 2012.

Natco Pharma manufactures generic dosage forms, bulk actives and intermediates for the Indian and international markets.

Powered by Capital Market - Live News