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Ipca Lab gains after RBI allows FII investment of up to 35%

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Capital Market
Last Updated : May 26 2015 | 12:01 AM IST

Ipca Laboratories gained 2.23% to Rs 667.30 at 11:15 IST on BSE after the central bank allowed purchases of company's shares by FIIs and RFPIs after foreign shareholding fell below the revised threshold caution limit.

The Reserve Bank of India made announcement after market hours on Friday, 22 May 2015.

Meanwhile, the S&P BSE Sensex was down 136.87 points or 0.49% at 27,820.63.

On BSE, so far 20,258 shares were traded in the counter, compared with an average volume of 71,179 shares in the past one quarter.

The stock hit a high of Rs 675.65 and low of Rs 664 so far during the day. The stock had scaled a 52-week high of Rs 899.30 on 30 June 2014. The stock hit a 52-week low of Rs 591.25 on 9 February 2015.

The stock had underperformed the market over the past one month till 22 May 2015, falling 1.06% compared with Sensex's 0.24% rise. The scrip had however outperformed the market in past one quarter, dropping 3.82% as against Sensex's 4.36% fall.

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The mid-cap pharma company has an equity capital of Rs 25.24 crore. Face value per share is Rs 2.

The Reserve Bank of India notified that it has removed restrictions placed on the purchase of shares of Ipca Laboratories by foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) category with immediate effect after foreign shareholding fell below the revised threshold caution limit. The Reserve Bank further notified that FIIs/RFPIs can now invest up to 35% of the paid up capital of Ipca Laboratories under the Portfolio Investment Scheme (PIS).

The Reserve Bank has stated that the company has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges and would be subject to Regulation 5(2) of FEMA Notification No.20/2000-RB dated 3 May 2000 (as amended from time to time) and other terms and conditions stipulated by the Reserve Bank.

Ipca Laboratories' net profit fell 70.1% to Rs 41.53 crore on 10.9% decline in total income to Rs 747.09 crore in Q3 December 2014 over Q3 December 2013.

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First Published: May 25 2015 | 11:06 AM IST

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