Serum Institute of India sells 0.65% stake in Panacea Biotec, details here
Panacea Biotec has been drawing attention following a recent development where the Serum Institute of India sold a 0.65 percent stake in the company. Approximately four lakh shares were offloaded at a price of roughly Rs 140.65 per share.
Panacea Biotec has been drawing attention following a recent development where the Serum Institute of India sold a 0.65 percent stake in the company. Approximately four lakh shares were offloaded at a price of roughly Rs 140.65 per share. What adds intrigue to this move is the fact that Serum Institute has been steadily reducing its holdings in Panacea over the past few quarters.
This trend began in May 2021 when Adar Poonawalla, who initially held a personal stake of 5.15 percent in Panacea Biotec, transferred this stake valued at approximately Rs 118 crore to his company, Serum Institute. Subsequently, Serum's shareholding in Panacea has continued to decline. For instance, in December 2021, Serum held around 8.59 percent of Panacea's stake, but this reduced to approximately 7.61 percent by December 2022.
As of June 2023, Serum Institute's stake in Panacea Biotec stands at approximately 6.97 percent, indicating a consistent reduction in their holdings.
Panacea Biotec is a prominent vaccine manufacturer that has garnered attention for its strategic moves. In December 2022, the company divested its domestic formulation business to Mankind for a significant sum of Rs 1,872 crore. Consequently, Panacea now primarily operates in the nutrition and vaccine sectors, along with its pharmaceutical export business.
Within the vaccine domain, Panacea is renowned for products like the Pentavalent vaccine Easyfive-TT and the oral polio vaccine, among others. Notably, the company has secured substantial long-term supply orders totaling Rs 1,040 crore from UNICEF and the Pan American Health Organization.
Read Here | New Listing: Jupiter Life Line Hospitals lists at a 32% premium to issue price, becomes 23rd listing of 2023
In the financial year 2023, Panacea Biotec managed to reduce its loss before exceptional items to around Rs 90 crore, a notable improvement compared to the loss of over Rs 220 crore in the previous year. This favorable change can be attributed to debt repayment following the Mankind deal. Consequently, the finance costs in FY23 decreased to approximately Rs 4.4 crore, a significant reduction compared to the Rs 180 crore incurred in the previous fiscal year.
In response to these developments, the stock of Panacea Biotec has experienced a noteworthy rally, surging by approximately 47 percent from its 52-week low.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM