Aurobindo Pharma hits 5-year low after promoters create pledge earlier this week

Aurobindo Pharma hits 5-year low after promoters create pledge earlier this week

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Shares of Aurobindo Pharma fell more than 6 percent intraday on October 11 after its promoter created a pledge earlier this week.

The stock touched an intraday low of Rs 436.05, the lowest level since September 2014. It was quoting at Rs 443.70, down Rs 21.45 or 4.61 percent, on the BSE at 1442 hours IST.

K Nityananda Reddy created a pledge on its 7.85 lakh shares (representing 0.13 percent of total paid-up equity) on October 9, taking total pledged shares to 58 lakh or 0.99 percent of total paid-up equity.

“Pledge creation – on shortfall of security for the existing loans due to fall in share price,” the company reasoned in its BSE filing.

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Nityananda, holding 4.33 percent stake in the company, pledged 2 lakh shares each with Julius Baer Capital (India) and Kotak Mahindra Investment while 1,50,000 shares are pledged with Aditya Birla Finance and 2,35,000 shares with Barclays Investments & Loans India.

Mrs Kambam Spoorthi also pledged her 8 lakh shares or 0.14 percent of the total paid-up equity on October 7 and 9. She held 1.3 percent stake in the company of which 0.47 percent stake is pledged with lenders.

Aurobindo, in its BSE filing, said Spoorthi pledged 5 lakh shares with Bajaj Finance on October 7 while 1,50,000 shares each are pledged with Sharekhan BNP Paribas Financial Services and Aditya Birla Finance on October 9.

The stock lost more than 40 percent of its value in the last six months.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.

courtsey By – https://www.moneycontrol.com/news/buzzing-stocks/aurobindo-pharma-hits-5-year-low-after-promoters-create-pledge-earlier-this-week_13065161.html

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