Strides Arcolab jumps after getting nod to hike FII limit

Strides Arcolab rose 3.07% to Rs 716 at 9:46 IST on BSE after the company said its shareholders have approved increasing the foreign institutional investors' investment limit in the company to 74% of the paid up equity share capital of the firm.

The announcement was made before trading hours today, 5 August 2013.

Meanwhile, the S&P BSE Sensex was up 36 points, or 0.19%, to 19,200.02.

On BSE, 18,000 shares were traded in the counter as against an average daily volume of 59,404 shares in the past one quarter.

The stock hit a high of Rs 729 and a low of Rs 696 so far during the day. The stock had hit a 52-week low of Rs 552.65 on 1 August 2013. The stock had hit a 52-week high of Rs 1,224.90 on 5 December 2012.

The stock extended recent rally by rising 21.62% in three sessions from a recent low of Rs 588.70 on 31 July 2013.

The stock had underperformed the market over the past one month till 2 August 2013, sliding 20.19% compared with the Sensex's 1.54% fall. The scrip had also underperformed the market in past one quarter, falling 20.83% as against Sensex's 2.90% fall.

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

Strides Arcolab said foreign institutional investors (FII) can now invest upto 74% of the paid up equity share capital of the company under the Portfolio Investment Scheme. The current FII holding in the company is 52%.

As required under the FEMA Regulation, the company has made necessary intimation to the Reserve Bank of India confirming the shareholders' approval for the increased FII investment limit.

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 7.27% 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.

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