Shares of Ipca Laboratories ended with a steep loss of over 8 per cent today after the US health regulator issued import alert on drugs produced at its Ratlam facility in Madhya Pradesh.
After plunging 8.9 per cent to Rs 637 in intra-day trade at the BSE, shares of Ipca Lab finally ended at Rs 639.15, down 8.60 per cent from previous close.
At the NSE, the stock slumped 8.74 per cent to close at Rs 637.85.
Following the sharp decline in the stock, the company's market value tumbled Rs 760.84 crore to Rs 8,064.16 crore.
In terms of volume, 4.60 lakh shares of the company changed hands at the BSE, while over 24 lakh shares were traded at the NSE during the day.
The US health regulator has issued import alert on drugs produced at Ipca Laboratories Ratlam in Madhya Pradesh, following which the company has suspended shipment of active pharmaceutical ingredients to the American market.
"We now wish to inform you that US Food and Drug Administration (USFDA) has issued an import alert to the said manufacturing facility (Ratlam ) on January 22, 2015," Ipca Laboratories said in a filing to the BSE.
Consequently, the company has voluntarily decided to temporarily suspend API (active pharmaceutical ingredients) shipments from this manufacturing facility for the US markets till this issue is addressed, it added.
Meanwhile, in the stock market the BSE benchmark Sensex ended at 29,278.84, up 272.82 points.
