Shares of drug major Lupin plunged over 6 per cent today as the company received three observations relating to violation of production norms at its Mandideep facility in Madhya Pradesh from the US Food and Drug Administration.
The stock tumbled 6.27 per cent to settle at Rs 1,401.45 on BSE. During the day, it nosedived 13.45 per cent to Rs 1,294.05 - its 52-week low.
At NSE, shares of the company dived 6.25 per cent to close at Rs 1,401.55.
The stock later saw some recovery after the company said the observations were "minor in nature" and would not lead to any disruption of product supply from the location.
Led by the sharp fall in the stock, the company's market valuation dipped by Rs 4,164.05 crore to Rs 63,146.95 crore.
The counter was the worst performer among the blue-chips on both Sensex and Nifty.
Volumewise, 20.93 lakh shares of the company changed hands at BSE and over one crore shares were traded at NSE during the day.
"We had an audit at our Mandideep location from February 2 to February 19. There were total of three observations. As the site has both dosage form facility and API facility, two separate form 483s were issued with two observations each," Lupin said in a regulatory filing.
The company's Mandideep facility is engaged in the manufacturing of APIs as well as dosage forms which produces sterile and non-sterile pharmaceutical products and mainly caters to the US and Europe markets.
Meanwhile, selling was also seen at other pharma counters, where RPG Life Sciences fell by 5.84 per cent, Glenmark Pharmaceuticals (4.60 per cent), Jubilant Life Sciences (4.54 per cent) and Alembic Pharmaceuticals (4.26 per cent).
The BSE healthcare index went down by 2.59 per cent to settle at 14,756.35.
