Strides Arcolab tumbles ex-dividend

Strides Arcolab fell 16.80% to Rs 661.80 at 13:29 IST on BSE after the stock turned ex-dividend today, 16 October 2014, for a special dividend of Rs 105 per share.

Meanwhile, the BSE Sensex was down 61.53 points, or 0.23%, to 26,287.80.

On BSE, so far 1.53 lakh shares were traded in the counter, compared with an average volume of 86,176 shares in the past one quarter.

The stock hit a high of Rs 687 and a low of Rs 653.50 so far during the day. The stock hit a 52-week high of Rs 804 on 14 October 2014. The stock hit a 52-week low of Rs 335.19 on 10 December 2013.

The stock had outperformed the market over the past one month till 14 October 2014, rising 8.81% compared with 2.63% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 26.91% as against Sensex's 5.37% rise.

The mid-cap company has an equity capital of Rs 59.57 crore. Face value per share is Rs 10.

Before turning ex-dividend, the stock offered a dividend yield of 13.20% based on the closing price of Rs 795.45 on Tuesday, 14 October 2014.

On 29 September 2014, Strides Arcolab announced that the board of directors of the company and Shasun Pharmaceuticals (Shasun), approved a scheme of amalgamation between the two companies wherein, Shasun will amalgamate with the company in an all-stock transaction. Shasun shareholders will receive five equity shares of Strides Arcolab for every sixteen equity shares held by them in Shasun. Based on the exchange ratio, Shasun shareholders will own 26% of the combined entity. The current promoters of Shasun will, post the approval of the merger, be categorized as promoters of the combined entity, along with the existing promoters of Strides.

The combined entity to be amongst the top 15 listed Indian pharmaceutical companies by revenue with a turnover in excess of Rs 2500 crore, the statement from Strides and Shasun said. The combination creates a vertically integrated pharma company of scale with strong presence in front-ended regulated markets, finished dosages, emerging markets branded generics, institutional business, active pharmaceutical ingredients and contract research and manufacturing services, the statement said.

The scheme of amalgamation is subject to various statutory and regulatory approvals, as may be applicable.

Strides Arcolab's net profit surged 1140.7% to Rs 26.80 crore on 24.6% growth in net sales to Rs 187.95 crore in the quarter ended 30 June 2014 over the quarter ended 30 June 2013.

Strides Arcolab is a global pharmaceutical company headquartered in Bangalore. The company develops and manufactures a wide range of IP-led niche pharmaceutical products. The company has 8 manufacturing facilities presence in more than 75 countries in developed and emerging markets.

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