Strides Arcolab extends gains on FIPB nod for sale of unit

Strides Arcolab rose 2.63% to Rs 912.45 at 10:29 IST on BSE, with the stock extending Wednesday's 7.09% gains triggered by FIPB giving its nod for US-based Mylan Inc's proposal to acquire Agila Specialties - a subsidiary of Strides Arcolab.

Meanwhile, the S&P BSE Sensex was up 144.70 points or 0.8% at 18,140.85.

On BSE, 19,000 shares were traded in the counter as against average daily volume of 77,121 shares in the past one quarter.

The stock hit a high of Rs 924.85 and a low of Rs 892 so far during the day. The stock hit a record high of Rs 1,224.90 on 5 December 2012. The stock had hit a 52-week low of Rs 552.65 on 1 August 2013.

The stock had outperformed the market over the past one month till 28 August 2013, surging 24.29% compared with the Sensex's 8.87% fall. The scrip had also outperformed the market in past one quarter, rising 0.32% as against Sensex's 10.74% fall.

The mid-cap-cap company has equity capital of Rs 59.10 crore. Face value per share is Rs 10.

Shares of Strides Arcolab have risen 9.91% in two trading sessions from Rs 830.15 on 27 August 2013, after the Foreign Investment Promotion Board (FIPB) on Tuesday, 27 August 2013, gave its nod for US-based Mylan Inc's proposal to acquire Agila Specialties -- a subsidiary of Strides Arcolab. The stock had surged 7.09% to settle at Rs 889.05 on Wednesday, 28 August 2013.

Since the Mylan's investment proposal is of over Rs 1200 crore, it will go to the cabinet committee on economic affairs for final approval. Earlier, FIPB had taken up the proposal in its 5 July meeting, but kept decision in abeyance pending finalisation of policy on FDI in brownfield pharma projects involving transfer of control.

On 28 February this year, Strides Arcolab and the US-based Mylan Inc signed a massive $1.6 billion plus agreement by which the US drug major will acquire Agila Specialties, the injectable medicine business of Strides.

Strides Arcolab reported net profit of Rs 2.16 crore in Q2 June 2013, as against net loss of Rs 19.90 crore in Q2 June 2012. Net sales declined 7.3% to Rs 150.83 crore in Q2 June 2013 over Q2 June 2012.

Strides Arcolab is a global pharmaceutical company headquartered in Bangalore. The company develops and manufactures a wide range of IP-led niche pharmaceutical products with an emphasis on sterile injectables.

Powered by Capital Market - Live News