Reacting to the news instantly, the Divi's Lab shares surged by over 20% in the morning trade. However, after paring some of the gains, the shares closed at Rs 1,080.90 on NSE, Rs 157.25, or 17%, higher, against the previous session's closing.
The stock had hit a 52 week high of Rs 1,297 on November 1, 2016 and the 52-week low of Rs 532 on May 29, 2017 on the NSE.
On September 20, 2017, the company had announced that all the earlier observations by the US health regulator regarding its Visakhapatnam facility have been confirmed as completed and resolved.
In March this year when the company had announced that it received an import alert from the USFDA, the stock prices had crashed by 20%.
That time, the analysts had said that it might take 2 to 3 year to address the concerns of the US agency over the Visakhapatnam plant, which contributes nearly 60 per cent to Divis's revenue
The net profit stood at Rs 207 crore in the second quarter of fiscal 2018 against Rs 223.8 crore in the year ago period.
Meanwhile, diluted earnings per share (EPS) stood at Rs 7.79 in the September quarter against Rs 8.43 in the year ago quarter.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.