Strides Arcolab jumps on FIPB nod for sale of unit

Strides Arcolab jumped 6.67% to Rs 885.50 at 14:42 IST on BSE after the Foreign Investment Promotion Board on Tuesday, 27 August 2013, gave 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 22.65 points or 0.13% at 17,990.73.

On BSE, 1.31 lakh shares were traded in the counter as against average daily volume of 74,933 shares in the past one quarter.

The stock hit a high of Rs 890 and a low of Rs 835 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 27 August 2013, surging 16.06% compared with the Sensex's 9.01% fall. The scrip had also outperformed the market in past one quarter, sliding 7.52% as against Sensex's 10.3% fall.

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

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, the Foreign Investment Promotion Board (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.

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