Morepen Laboratories slumped fell 13.56% to Rs 18.80 after market regulator Sebi prohibited the company from accessing the securities market for one year.
Equity market regulator Securities and Exchange Board of India (Sebi) on Tuesday barred Morepen Laboratories from the capital market for one year for making misleading disclosure about the issuance of global depository receipts (GDRs). The regulator noticed some arrangement being perpetrated by certain entities in respect of issuance of GDRs and therefore conducted an investigation into such issues of various companies, including Morepen Laboratories, made in March 2003.In this regard, Morepen Laboratories is seeking advice for pursuing suitable remedies including filing of appeal before the appropriate forum. Further, there is no impact on the existing securities listed with the stock exchanges as well as no financial implications on the business operation of the company, of the said order.
Additionally, with reference to the ongoing preferential issue of fully convertible warrants (to be converted within 18 months), the company is seeking guidance regarding implication of the Sebi's order and process to be followed to complete the said preferential issue of warrants, the company said in its clarification to the bourses.
Meanwhile, the S&P BSE Sensex was down 388 points or 0.99% to 38,708.95.
On the BSE, 35 lakh shares were traded in the Morepen Laboratories counter so far compared with average daily volumes of 89446 shares in the past one quarter. The stock hit a high of Rs 19.65 and a low of Rs 18 so far during the day.
The stock hit a 52-week high of Rs 27.8 on 01 Nov 2018. The stock hit a 52-week low of Rs 14.7 on 21 Feb 2019.
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On a consolidated basis, the company's net profit surged 211.4% to Rs 7.66 crore on a 24% increase in net sales to Rs 202.98 crore in Q1 June 2019 over Q1 June 2018.
Morepen Laboratories manufactures and sells active pharmaceutical ingredients (APIs), home diagnostics and finished formulations to 50-plus countries.
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