Shares of Lyka Labs were locked at the upper circuit for the second straight day, up 5 per cent at Rs 129.15, also its 52-week high on the BSE on Tuesday, after Ipca Laboratories bought 1 million shares of pharmaceuticals company via open market deals.
On Monday, November 23, 2021, Ipca Laboratories purchased 1.05 million equity shares representing 3.65 per cent stake in Lyka Labs at price of Rs 123 per share on the BSE via bulk deals, the exchange data reveals.
Vipul Priyakant Dalal (240,121 shares) and Shreyans Jashwantlal Shah (345,000 shares) have sold the company’s shares at price of Rs 123 per share. The names of the other sellers was not ascertained immediately.
The stock of pharmaceuticals company was trading at its highest level since January 2016. In past three months, it surged 85 per cent, as compared to 5 per cent rise in the S&P BSE Sensex. While, in six months, it zoomed 114 per cent, against 15.6 per cent gain in the benchmark index. Further, in one year it skyrocketed 618 per cent, as compared 32 per cent rally in the Sensex.
Today, the trading volumes at the counter jumped over three-fold with 999,999 equity shares changing hands on the BSE so far. There were pending buy orders for 3 million shares on the BSE and NSE.
Lyka Labs manufactures pharmaceutical products such as dry powder, liquid and lyophilised injections and external preparations and cosmetics covering various therapeutic areas. The company is also engaged in manufacturing on the peer-to-peer (P2P) basis and job work basis for Covid 19 medicines.
The management in FY21 annual report said that the company is constantly exploring possibilities of entering into newer international markets with reputed partners and has also introduced new products in existing markets.
It is also modernising its existing manufacturing facilities to improve through put and reduce manufacturing costs thereby increasing profitability. The company is also trying to add reputed customers to its clientele list in the domestic P2P and Job work business.
To meet the increase in demand for lyophilised products the company has embarked on an expansion project of its Lyophilization plant at its Ankleshwar factory. This project is likely to be completed in 9-12 months with a 50 per cent enhancement in capacity for lyophilisation, the company said in annual report dated July 9, 2021. Meanwhile, the Company expects to have plant approvals from PICS and other Regulatory Authorities within the current financial year.