Strides Arcolab rose 5.17% to Rs 750 at 14:33 IST on BSE after the company said its board approved a special dividend of Rs 105 per share to the shareholders.
The announcement was made during trading hours today, 7 October 2014.
Meanwhile, the BSE Sensex was down 208.81 points, or 0.79%, to 26,359.18.
On BSE, so far 3.34 lakh shares were traded in the counter, compared with an average volume of 71,953 shares in the past one quarter.
The stock hit a high of Rs 750 and a low of Rs 712 so far during the day. The stock hit a 52-week high of Rs 770 on 16 September 2014. The stock hit a 52-week low of Rs 335.19 on 10 December 2013.
The stock had outperformed the market over the past one month till 1 October 2014, rising 7.43% compared with 1.11% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 12.23% as against Sensex's 4.12% rise.
The mid-cap company has an equity capital of Rs 59.57 crore. Face value per share is Rs 10.
Strides Arcolab said the said special dividend will be paid on or after 22 October 2014.
On 29 September 2014, Strides Arcolab announced that the board of directors of the company and Shasun Pharmaceuticals (Shasun), approved a scheme of amalgamation between the two companies wherein, Shasun will amalgamate with the company in an all-stock transaction. Shasun shareholders will receive five equity shares of Strides Arcolab for every sixteen equity shares held by them in Shasun. Based on the exchange ratio, Shasun shareholders will own 26% of the combined entity. The current promoters of Shasun will, post the approval of the merger, be categorized as promoters of the combined entity, along with the existing promoters of Strides.
The combined entity to be amongst the top 15 listed Indian pharmaceutical companies by revenue with a turnover in excess of Rs 2500 crore, the statement from Strides and Shasun said. The combination creates a vertically integrated pharma company of scale with strong presence in front-ended regulated markets, finished dosages, emerging markets branded generics, institutional business, active pharmaceutical ingredients and contract research and manufacturing services, the statement said.
The scheme of amalgamation is subject to various statutory and regulatory approvals, as may be applicable.
Strides Arcolab's net profit surged 1140.7% to Rs 26.80 crore on 24.6% growth in net sales to Rs 187.95 crore in the quarter ended 30 June 2014 over the quarter ended 30 June 2013.
Strides Arcolab is a global pharmaceutical company headquartered in Bangalore. The company develops and manufactures a wide range of IP-led niche pharmaceutical products. The company has 8 manufacturing facilities presence in more than 75 countries in developed and emerging markets.
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