Strides Arcolab shares sink on dividend worries

MUMBAI Thu Feb 28, 2013 9:51am IST

Related Topics

Stocks

   

MUMBAI (Reuters) - Shares in drugmaker Strides Arcolab (STAR.NS) plummeted about 10 percent on Thursday, wiping out early gains following its sale of a unit to Mylan (MYL.O) for $1.6 billion, as investors were unhappy with Strides' dividend payout, traders said.

The shares had initially gained as much as 13.2 percent.

The company declared a 20 percent dividend, or 2 rupees per share, for 2012.

Strides' injectables unit Agila Specialties generated $700 million in sales and an operating profit of $86 million in year 2012, Strides said.

The Bangalore-based drugmaker said it planned to spend $700 million to $800 million at pretax level on shareholders.

Valued at $1.1 billion, shares in Strides Arcolab were down 8.5 percent at 902.95 rupees by 9:51 a.m. when the Mumbai market was up 0.55 percent.

(Reporting by Kaustubh Kulkarni; Editing by Gopakumar Warrier)

FILED UNDER:

Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage