Granules India Slumps 13% As Telangana Facility Gets 11 Observations

Granules India shares fell as much as 13 per cent to hit an intraday low of Rs 97.75 after the pharmaceutical firm said that its facility in Gagillapur, Telangana received 11 observations from INFARMED (InstitutoNacional da Farmacia E Do Medicamento), the Portuguese drug regulator.

The observations from the drug regulator came after it inspected its facility at Gagillapur facility which manufactures pharmaceutical formulation intermediates (PFIs) and finished dosages (FDs).

The company said in a regulatory filing post-market hours on Friday that it has initiated necessary steps to address the observations of the inspection agency and will submit its response with a corrective and preventive action plan within the stipulated time. The company will also be requesting INFARMED for re-inspection of the Gagillapur facility at the earliest.

For the quarter ended September 2016, Hyderabad-based Granules India reported a 26.5 per cent rise in net profit at Rs 40.82 crore, as against  Rs 32.27 crore for the corresponding three-month period a year a ago. 

Following this development, Granules India shares saw huge volumes as 12.2 lakh shares changed hands compared with its two-week average of 1.19 lakh shares.

Granules India shares ended 9.84 per cent lower at Rs 101.