Lupin shares crash nearly 17 percent, mcap drops by Rs 7,866 crore
By PTI | Published: 07th November 2017 04:10 PM |
Last Updated: 07th November 2017 07:51 PM | A+A A- |
An employee of Lupin Limited works at a reception at their headquarters in Mumbai. (File Photo | Reuters)
NEW DELHI: Shares of drug firm Lupin today plunged nearly 17 per cent, wiping out Rs 7,866 crore from its market valuation, after the company said it has received warning letter from the US health regulator for its manufacturing facilities in Goa and Pithampur, Indore.
The stock tumbled 16.84 per cent to end at Rs 860.50 on BSE. During the day, it tanked 18.21 per cent to Rs 846.20 -- its 52-week low.
On NSE, shares of the company plummeted 16.88 per cent to close at Rs 859.90.
The stock was the biggest loser among the bluechips on both the key indices.
Following the steep decline in the stock price, the company's market valuation also eroded by Rs 7,866.28 crore to Rs 38,884.72 crore.
In terms of equity volume, 28.92 lakh shares of the company were traded on BSE and over 2 crore shares changed hands on NSE during the day.
The company had earlier received three form 483 observations for the Goa facility on April 7, 2017 and six form 483 observations for Pithampur (Unit II) on May 19, 2017, Lupin said, adding that it had responded to all the observations.
"The company has received a warning letter issued by the United States Food and Drug Administration (USFDA) on November 6, 2017 for our formulation manufacturing facilities at Goa and Indore (Pithampur Unit II)", Lupin said in a filing to BSE.
The company is deeply disappointed to have received this outcome, it said, adding that while there will be no disruption of product supplies from either of these locations, there is likely be a delay of new product approvals.
Lupin however did not share the concerns raised by the US health regulator in its warning letter.
