Morepen Laboratories shares jump 6%; what's driving buying interest?

Morepen Laboratories shares jumped 5.7 per cent, after the company arm Morepen Medipath executed a joint venture (JV) agreement with Bimedical FZE, a UAE based entity

Morepen Laboratories shares jumped 5.7 per cent on Tuesday and logged an intra-day high at ₹51.93 per share on BSE. At 10:13 AM, on BSE, Morepen Laboratories’ share price was trading 3.73 per cent higher at ₹50.93 per share. In comparison, the BSE Sensex was up 0.3 per cent at 81,033.48.

 

The market capitalisation of the company stood at ₹2,790.73 crore. The 52-week high of the stock was at ₹100.8 per share, and the 52-week low was at ₹41.66.

Why were Morepen Laboratories shares in demand?

The buying on the counter came after the company arm Morepen Medipath executed a joint venture (JV) agreement with Bimedical FZE, a UAE based entity.

 

 

The proposed JV will be a related party of the company. The promoter/ promoter group of the company does not have any interest in the proposed JVC, except as members of Morepen Medipath.

 

“This is to inform you that Morepen Medipath Limited (formerly known as Morepen Medtech

Limited), a subsidiary of the company, has executed a joint venture agreement with Bimedical FZE,

to form a joint venture company,” the filing read. 

 

The proposed JV will carry on the business of manufacturing, trading, and selling of medical devices related products. 

 

Morepen Medipath and Bimedical FZE will contribute in the ratio of 50:50 in the share capital of the proposed JV.

 

Recently, the Ministry of Corporate Affairs also approved the incorporation of Sigmacheck Health with an authorised capital of ₹1,00,000 divided into 10,000 equity shares of ₹10 each. 

 

The incorporated entity, being a step-down subsidiary of the company, is a related party of the company, and the incorporation aimed to cater to the growing demands of the medical devices.

 

Morepen Laboratories is an Indian pharmaceutical and healthcare company that develops, manufactures, and markets Active Pharmaceutical Ingredients (APIs), generic and branded formulations, and home health products. The company holds a global market leadership in several APIs, like Montelukast and Loratadine and is also a prominent player in the medical devices market, particularly in glucometers and BP monitors through its Dr. Morepen brand. Morepen exports its products to over 80 countries and operates with four manufacturing facilities, including a large unit in Baddi, India.