Aurobindo Pharma fell 0.85% to Rs 608.60 after the stock market regulator, Sebi, imposed Rs 22 crore fine on the pharmaceutical company, promoters and related entities for violating insider trading norms.
The Securities and Exchange Board of India (Sebi) has imposed a total penalty of about Rs 22.70 crore on Aurobindo Pharma, its promoter P V Ramprasad Reddy, his wife P Suneela Rani and other connected entities for violating insider trading rules.Sebi imposed Rs 5 crore penalty on PV Ramaprasad Reddy, Rs 2 crore on his wife P Suneela Rani, Rs 10 lakh on Kambam P Reddy, Rs 6 crore on Trident Chemphar, Rs 10 lakh on Veritaz Health Care, Rs 7.5 crore on Top Class Capital Markets under Section 15G of SEBI Act, and Rs 2 crore on Aurobindo Pharma under Section 23E of Securities Contracts (Regulation) Act and Section 15HB of SEBI Act, according to Sebi's adjudicating order.
Sebi conducted investigation into the trading in the scrip of Aurobindo Pharma during the period from 22 July 2008 to 20 March 2009. The investigation revealed that promoter, his wife and connected entities traded in the scrip of Aurobindo Pharma prior to the information about the licensing and supply agreements with Pfizer became public.
Meanwhile, the S&P BSE Sensex was up 3 points or 0.01% to 39093.18.
The market surged in the past two sessions after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
On the BSE, 58,489 shares were traded in the Aurobindo Pharma counter so far compared with average daily volumes of 11 lakh shares in the past one quarter. The stock hit a high of Rs 608.6 and a low of Rs 589.5 so far during the day.
The stock hit a 52-week high of Rs 838 on 30 Apr 2019. The stock hit a 52-week low of Rs 537 on 05 Aug 2019.
On a consolidated basis, the drug maker's net profit rose 39.5% to Rs 635.83 crore on a 28.1% increase in net sales to Rs 5356.84 crore in Q1 June 2019 over Q1 June 2018.
Aurobindo Pharma is a pharmaceutical manufacturing company. The company manufactures generic pharmaceuticals and active pharmaceutical ingredients.
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