Strides Shasun rose 2.95% to Rs 1,064.05 at 13:00 IST on BSE after the company announced that its wholly owned subsidiary, Strides Pharma will acquire three brands from Moberg Pharma and its affiliates.
The announcement was made yesterday, 7 March 2016. The market was shut on that day due to holiday.Meanwhile, the BSE Sensex was up 43.47 points, or 0.18%, to 24,689.95.
Higher than normal volumes were witnessed on the counter. On BSE, so far 1.43 lakh shares were traded in the counter, compared with an average volume of 64,132 shares in the past two weeks. The stock hit a high of Rs 1,136.90 and a low of Rs 1,040 so far during the day. The stock hit a record high of Rs 1,412.45 on 23 November 2014. The stock hit a 52-week low of Rs 848 on 29 February 2016. The stock had underperformed the market over the past one month till 4 March 2016, sliding 2.98% compared with Sensex's 1.27% gain. The scrip had also underperformed the market in past one quarter, sliding 24.64% as against Sensex's 3.87% fall.
The large-cap company has an equity capital of Rs 89.27 crore. Face value per share is Rs 10.
Strides Shasun announced that its wholly owned subsidiary Strides Pharma Inc. has entered into an agreement with Moberg Pharma, Sweden and its affiliates to acquire their Jointflex, Fergon and Vanquish brands for a total consideration of $10 million plus inventory value at closing. The acquisition strengthens Strides Shasun's strategy to build a global over the counter (OTC) franchise. The transaction adds $6.1 million of revenue and delivers above company earnings before interest, tax, depreciation and amortization (EBITDA) margins. The transaction is immediately accretive and is expected to close within next four weeks.
Strides Shasun's consolidated net profit rose 172.4% to Rs 51.86 crore on 360.1% rise in net sales to Rs 1446.53 crore in Q3 December 2015 over Q3 December 2014.
Strides Shasun is a pharmaceutical company with a key focus on development and manufacture of IP-led niche generics and bio-pharmaceuticals. It is also among the world's largest manufacturers of specialty soft gelatin capsules.
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