Strides Shasun rebounds over 10% post clarification on auditor resignation

The stock moved higher by 2% to Rs 432, bouncing back 13% from its early morning low on the BSE

Strides Shasun rose 2% to Rs 432, bouncing back 13% from its early morning low on the BSE, after the company made clarification on rumor regarding resignation of statutory auditor. The stock hit a low of Rs 383 on the BSE in intra-day trade.

We understand that there are unconfirmed rumours in the market relating to the resignation of Statutory Auditors of the Company.

“The Company wishes to clarify that the Company has already declared audited financial results for the financial year 2017-18 on May 18, 2018 and M/s. B S R & Co. LLP, the statutory auditors of the Company have issued the auditors’ report for the financial year ended March 31, 2018 with unqualified opinion in respect of the standalone and consolidated financial results, the copies of which has already been submitted to the stock exchanges,” Strides Shasun said in a regulatory filing.

We, therefore, wish to clarify that the rumours are malicious and unfounded and there is no truth in the matter. We request you to take this clarification on record and disseminate to investors community, it added.

Meanwhile, the company in separate regulatory filing said that it seeking member’s approval for the name change of the company from 'Strides Shasun' to 'Strides Pharma Science' and divestment of investment in Strides Chemicals Private Limited.

At 10:38 am; the stock trading 1% lower at Rs 420 on the BSE. A combined 7.19 million shares changed hands on the counter on the BSE and NSE so far.

Strides Shasun has rallied 24% in past one week from Rs 341 to Rs 423 till Monday. Shares of pharmaceutical company tanked 32% from its level of Rs 503 on May 17, 2018, after the company reported a consolidated net loss of Rs 44 million in March 2018 quarter (Q4FY18). The company reported its first quarterly loss since September 2014 quarter. It had posted a net profit of Rs 916 million in Q4FY17.