 "Divi's Laboratories shares slip 6% in trade; what's worrying investors?")
Divi's Laboratories shares lost 5.7 per cent in Thursday's trade and logged an intraday low at Rs 5,900 per share. The selling pressure in the stock came after the Joint Director, Directorate of Enforcement, Hyderabad Zonal Office levied a penalty of Rs 6 lakh each.
Around 11:02 AM, Divi's Labs share price was down 3.09 per cent at Rs 6,064.6 per share. In comparison, the BSE Sensex was down 0.46 per cent at 80,580.61. The market capitalisation of the company stood at Rs 1,60,996.08 crore. The 52-week high of the stock stood at Rs 6,448.75 per share and 52-week low of the stock stood at Rs 3,350.05 per share.
On Wednesday, after market hours, the company informed investors through an exchange filing that the office of the Joint Director, Directorate of Enforcement, Hyderabad Zonal Office, Government of India has penalised the company for the procedural delay in the submission of annual performance reports (APRs) in respect of investments in its overseas subsidiaries-- Divi’s Laboratories Europe AG and Divis Laboratories (USA) Inc.
The filing further said that the financials of the company won't be impacted and the penalty will be paid within the prescribed timeline.
Divis Laboratories is a leading global pharmaceutical company based in India, specializing in the production of active pharmaceutical ingredients (APIs) and intermediates. The company is known for its expertise in the development and manufacturing of high-quality bulk drugs, catering to the needs of the pharmaceutical, biotechnology, and healthcare industries worldwide.
The pharmaceutical company has a strong focus on research and development, innovation, and manufacturing excellence, enabling it to produce a wide range of APIs for therapeutic areas such as oncology, cardiology, neurology, and anti-infectives.
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The company operates manufacturing facilities that adhere to stringent international standards and regulatory requirements. Divis Laboratories is also involved in contract research and manufacturing services (CRAMS), offering services to global pharmaceutical companies. With a strong emphasis on sustainability, quality control, and customer satisfaction, Divis Labs has earned a reputation as a reliable and trusted supplier in the global pharmaceutical market.
In the past one year, Divi's Labs shares have gained 65.7 per cent against Sensex's rise of 17 per cent.