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Granules India shares jump 10% after promoters sell stake

Granules India shares jump 10% after promoters sell stake

Granules India shares jump 10% after promoters sell stake
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By Ajay Vaishnav  Mar 8, 2019 11:36:53 AM IST (Updated)

Granules India shares jumped 10 percent to an intra-day high of Rs 113.50 after the promoters sold 50 lakh shares to a group of investors in a block deal to mobilize funds.

Granules India shares jumped 10 percent to an intra-day high of Rs 113.50 on BSE. The sharp rise came in despite promoters selling 50 lakh shares, constituting 1.9 percent stake, worth Rs 50 crore via open market.

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In its exchange filing, Granules India said that the promoters sold 50 lakh shares to a group of investors in a block deal to mobilize funds. Furthermore, the funds raised will be used to reduce promoter leverage by up to Rs 100 crore and bring down the promoters pledged position to around 30 percent from the current level of 54 percent.
The move is in line with their commitment given during Q3FY19 earnings call where they said they would reduce the promoters' pledge continuously and make it pledge-free within two years, it noted
The promoters also reduced some amount of their personal loan in the month of December 2018, which enabled the reduction of from their highest point of the pledge of 60%
to the current level of 54%, said the press filing by the company.
However, the company noted that this step has been taken after due consultation with all sets of stakeholders.
It further continued by saying, "Granules India has started its growth momentum from the current financial year, having witnessed 3 consecutive strong quarters with high double-digit growth in profits, and is among the very few integrated pharmaceutical companies in India and fully FDA compliant. The management is confident and aspires to continue to meet and exceed all the company's stated goals."
Granules India stock quoted at Rs 108.95, up almost 5 percent on BSE at 11.04 am. The benchmark BSE Sensex traded lower by 63 points at 36,662.
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