Shares of IPCA Laboratories ended with sharp losses of 10.5 per cent, wiping-out Rs 995 crore from its market valuation today, amid reports of stock downgrade.
After falling 14.91 per cent to 52-week low of Rs 635 in intra-day trade, shares of IPCA Laboratories finally settled at Rs 667.60, down 10.55 per cent on the BSE.
At the NSE, the stock ended at Rs 667, down 10.71 per cent from its previous close.
Following the sharp fall in the stock, the company's market value dipped Rs 994.88 crore to Rs 8,423.12 crore.
In terms of volume, 5.59 lakh shares of the company changed hands at the BSE, while over 29 lakh shares were traded at the NSE during the day.
As per media reports, Credit Suisse has downgraded the stock to "underperform" from "neutral", citing negative USFDA observations.
The US Food and Drug Administration (USFDA) has issued Form-483 for the company's Indore SEZ, reports said.
"It has been reported, that there are six observations on Indore SEZ in Form 483 out of which two are critical observations," said Sarabjit Kour Nangra, VP Research - Pharma, Angel Broking.
"The stock has declined significantly after the news," she said.
Earlier in July, 2014, the USFDA had released Form 483 for its Ratlam active pharmaceutical ingredients (APIs) facility, which listed six serious deviations from current good manufacturing practices (cGMP) on quality and training, Nangra added.
The company's stock was reportedly downgraded post critical 483 observations.
