Granules India rallies 6% as PI Industries looks to buy promoter stake

New Delhi: Shares of zoomed close to 6 per cent during the early trade on Friday amid reports that is looking to buy a stake in the company.

PI Industries is in talks with Granules India to buyout a promoter stake, reported ET Now citing sources. "Initial discussions between the two companies have already taken place," the report said.


The promoters of Granules India have a 42 per cent stake in the pharmaceutical company which is valued at Rs 3,200 crore.

Following the development, shares of Granules India jumped about 6 per cent to Rs 326 on Friday, before giving up some gains to trade at Rs 312.95 at 10.35 am. The counter settled at Rs 308.45 on Thursday.

PI Industries' shares rose more than a per cent to Rs 3,284.20 during the trading session. The scrip had ended the previous session at Rs 3,244.65.

Granules is a large-scale vertically integrated company that manufactures API, intermediates and finished dosages and has seven manufacturing facilities along with B2B & B2C marketing and distribution.

Domestic brokerage firm ICICI Direct, in its report released in mid-August, had a buy call on Granules India with a target price of Rs 375.

The brokerage cited focus on backward integration, initiatives like passing on price hikes to customers and a compelling risk-reward matrix based on FY24E earnings as key positives.

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