Shares of Piramal Healthcare rose nearly four per cent on Tuesday, on speculation that the company was planning to give a hefty special dividend.
The company’s stock opened at Rs 502 on the Bombay Stock Exchange (BSE) on Tuesday and touched a high of Rs 523.70 during the day’s trade. It finally closed at Rs 521.30, up Rs 19.85. Total traded quantity in the counter on BSE was 550,000 shares, more than double its two-week average of 263,000 shares.
“The stock has moved up on buzz that the company may give special dividend of Rs 150-200 a share,” said brokers.
When asked, N Santhanam, group president and chief financial officer (CFO), said; “We have not taken a decision on the dividend. It will take another month for Abbott’s money to reach us, as the transaction is yet to be completed.” In May this year, Abbott Laboratories acquired the branded generics business of Piramal Healthcare for $3.7 billion.
By the deal, Abbott will pay $2.12 billion up-front and make annual payments of $400 million for four years from 2011. At that time, Piramal Healthcare had said it would consider a special dividend.
In July, Piramal Healthcare sold its diagnostic services unit to Super Religare Laboratories for Rs 600 crore. It was to get Rs 300 on closing the deal and the balance amount over three years.
