Strides Arcolab fell 6.22% to Rs 771.80 at 10:39 IST on BSE after the Reserve Bank of India barred investment by foreign institutional investors in the company till further intimation.
The announcement was made after market hours on Tuesday, 13 August 2013.
Meanwhile, the BSE Sensex was up 53.18 points, or 0.28%, to 19,283.02.
On BSE, 26,000 shares were traded in the counter compared with average volume of 76,800 shares in the past one quarter.
The stock hit a high of Rs 810 and a low of Rs 765 so far during the day. The stock hit a record high of Rs 1,224.90 on 5 December 2012. It 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 13 August 2013, rising 6.65% compared with the Sensex's 3.65% decline. The scrip had, however, underperformed the market in past one quarter, sliding 7.41% as against Sensex's 2.35% fall.
The mid-cap company has an equity capital of Rs 59.10 crore. Face value per share is Rs 10.
The Reserve Bank of India (RBI) on Tuesday, 13 August 2013, directed all the custodian banks not to facilitate any purchase transactions on behalf of foreign institutional investors (FIIs) in the company till further intimation, Strides Arcolab said in a statement.
The company also said that the RBI is currently reviewing the matter of raising FII limit in the company with the Government of India.
Earlier on 5 August 2013, Strides Arcolab informed that its shareholders approved hiking investment limit of FIIs to 74% of the paid up equity share capital of the company under the portfolio investment scheme.
The company had later made necessary intimation to RBI, confirming the shareholders' approval for increasing FII investment limit.
Currently, the ceiling on investment by FIIs in Strides Arcolab is 49%. Total foreign holding in the company was 55.21% as at 30 June 2013, of which 51.77% was held by FIIs.
Meanwhile, the finance ministry on 6 August 2013 said that the government has kept in abeyance decision on Strides Arcolab's proposal to sell its specialties subsidiary -- Agila Specialties -- to US based Mylan Inc. until DIPP finalizes policy on FDI in brown field pharma projects involving transfer of control. Strides Arcolab had in February 2013 announced the sell of Agila Specialties to Mylan Inc. for a net consideration of about $1.725 billion.
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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