Galaxy Surfactants fell 2.20% to Rs 1,465.05 at 13:46 IST on BSE after the company said it received a total of 13 observations for two of its facilities in Maharashtra after USFDA audit.
The announcement was made after market hours yesterday, 2 April 2018.Meanwhile, the S&P BSE Sensex was down 26.76 points, or 0.08% to 33,228.60.
On the BSE, 3,085 shares were traded in the counter so far compared with average daily volumes of 3,315 shares in the past two weeks. The stock had hit a high of Rs 1,480 so far during the day. The stock had hit a low of Rs 1,430 so far during the day, which is also a record low for the counter. The stock hit a record high of Rs 1,742.80 on 9 February 2018.
Galaxy Surfactants announced that it has five manufacturing facilities in India, one located at Taloja (Maharashtra), three located at Tarapur (Maharashtra) and one located at Jhagadia (Gujarat). Of the facilities at Tarapur, two of the facilities viz. M3 and N46, have undergone US Food and Drug Administration (USFDA) inspection, which was concluded on 30 March 2018. These facilities manufacture two products viz. Octyl Methoxy Cinnamate and Octocrylene, which have USP monograph.
This is the first USFDA inspection of the company's facility and it has been issued Form 483 with observations. M3 plant received four and N46 plant received nine observations. All the observations are procedural in nature and none of them were related to any data integrity.
The firm is in the midst of providing a comprehensive response to the observations and would be replying to the USFDA within the stipulated time. The revenue from the US market for these 2 products is less than 1% of the company's consolidated revenues and it does not expect any financial impact.
Shares of Galaxy Surfactants were listed on the bourses on 8 February 2018. On its debut, the stock settled at Rs 1,698.10 on BSE, a premium of 14.74% to its initial public offer (IPO) price of Rs 1,480 per share. It was listed on the BSE at Rs 1,520, a premium of 2.7% over the IPO price.
The IPO of Galaxy Surfactants had received bids for 8.86 crore shares. The IPO was subscribed 20 times. The company had fixed the IPO price band of Rs 1,470 to Rs 1,480 per share. The IPO had opened on 29 January 2018 and closed on 31 January 2018. Ahead of the opening of the IPO, the board of directors had finalised allocation of 18.99 lakh equity shares to 25 anchor investors at Rs 1,480 per share.
On a consolidated basis, Galaxy Surfactants reported net profit of Rs 75.16 crore on total income of Rs 1197.28 crore in Q2 September 2017.
Galaxy Surfactants manufactures surfactants and other speciality chemicals for the personal- and home-care industries. Products finds application in a host of consumer-centric personal- and home-care segments including skin-, oral- and hair-care, cosmetics, toiletries and detergent products.
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