Granules India rose 2.37% to Rs 131.70 after the media reported that private-equity companies are engaged in early-stage discussions to acquire the company.According to the media report, the Blackstone Group, KKR & Co, Apax Partners, Advent International and Bain Capital are among the leading global private-equity (PE) firms engaged in early-stage discussions to acquire Granules India.
PE funds reportedly see Granules as a good opportunity as manufacturing of their global pharma portfolio companies can be outsourced and APIs and bulk drugs can be exported at a cheaper price.
Promoters of Granules held 42.90% stake in the company as on 30 September 2019.
The stock traded in the range of Rs 129.70 and Rs 135.85 so far during the day. The trading volume for the scrip was nearly twice its two-week average trading volume of 85,000 shares, as over 1.77 lakh shares were traded in the counter till now.
Granules India, one of the largest contract research & manufacturing companies in the country, hit fresh a 52-week high of Rs 135.85 in intraday today.
The company's consolidated net profit jumped 59% to Rs 95.79 crore on a 20.4% increase in net sales to Rs 699.53 crore in Q2 September 2019 over Q2 September 2018.
On the technical front, the stock's RSI (relative strength index) stood at 65.817. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading above its 50-day placed at Rs 114.55 and its 200-day moving average (DMA) placed at Rs 104.37.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)