Novartis India slumps after issuing clarification regarding delisting buzz

Novartis India slumped 10.09% to Rs 754 at 10:55 IST on BSE after clarification that the company's board has not received any notice from the promoters, Novartis AG, on its intention to delist its shares from the Bombay Stock Exchange.

The company issued clarification after market hours yesterday, 11 June 2015.

Meanwhile, the S&P BSE Sensex was up 41.34 points, or 0.16%, to 26,412.32.

On BSE, so far 3 lakh shares were traded in the counter, compared with an average volume of 54,912 shares in the past one quarter.

The stock hit a high of Rs 780 and a low of Rs 725.50 so far during the day. The stock hit a 52-week high of Rs 869.60 on 11 June 2015. The stock hit a 52-week low of Rs 514 on 11 June 2014.

The stock had outperformed the market over the past one month till 11 June 2015, jumping 39.57% compared with 4.13% decline in the Sensex. The scrip had also outperformed the market in past one quarter, surging 37.49% as against Sensex's 7.98% fall.

The mid-cap stock has an equity capital of Rs 15.98 crore. Face value per share is Rs 5.

With reference to the news captioned, "Novartis AG said to explore delisting of $380 mn Indian unit," Novartis India clarified that it is not aware of the source of the news item. The board of the company has not received any notice from the promoters of the company, Novartis AG, on its intention to delist the equity shares of the company from the Bombay Stock Exchange, the company added.

The report had stated that Novartis AG, parent company, is considering delisting of Indian unit, Novartis India from the Bombay Stock Exchange.

Novartis India's net profit rose 117.5% to Rs 51.94 crore on 8% rise in total income to Rs 244.46 crore in Q4 March 2015 over Q4 March 2014.

As per the shareholding pattern, Novartis AG held 75% stake in the company as on 31 March 2015.

Novartis is into the research and development of products to protect and improve health and well-being. The company has core businesses in pharmaceuticals, vaccines, consumer health, generics, eye care and animal health. The Group is present in India through Novartis India and its wholly owned subsidiaries Novartis Healthcare, Sandoz and Chiron Behring Vaccines.

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