Aarti Drugs shares on Tuesday came under heavy selling pressure on the National Stock Exchange (NSE) as the stock turned ex-bonus after the company received an import alert from US FDA (Food and Drug Administration).
Reacting to the said developments, the stock of the company opened on a bearish note at Rs 624 then touched an intra-day low of Rs 558.95 on the NSE.
"Two of the Aarti Drugs facilities in Tarapur have received an import alert dated March 23, 2015 as per the FDA website," the company said in a regulatory filing.
"However, only one of that is US FDA facility. Second one, we had already delisted from the US FDA website couple of years back", it added.
Moreover, the company had fixed March 25, 2015 as the record date for the purpose of allotment of bonus shares in proportion of 1:1.
One bonus equity share of Rs 10 each fully paid up for every one existing equity share of Rs 10 each fully paid up held in the company.
The company, however, noted that this import alert would not affect the company's earnings.
"For the current financial year 2014-15, the total US sales contributes to slightly less than 1 per cent of the total sales volume. Hence this shouldn't affect our top-line and bottom-line significantly," the company said.
Following which the stock recovered some lost ground and was quoted at Rs 617.50, down 8.05 per cent at 1247 hours on NSE.
Aarti Drugs further noted for the said E-22 facility, they had a re-inspection in August 2014 and had submitted four responses.
"We still have to receive an official communication from US FDA on the import alert after which we can take immediate actions to rectify the same," it added.
Shares of the company were trading at Rs 627.80 per share, down 43.75 points or 6.51% on NSE. On Bombay Stock Exchange (BSE) Aarti Drugs shares were down by 721.25 points at Rs 626.00 at 3:08 pm.