Aarti Drugs share rose nearly 8% today after the company's subsidiary received approval under Production Linked Incentive (PLI) scheme for the pharmaceutical sector. The pharma stock opened with a gain of 6.11% at Rs 706.35 today. The mid cap stock touched an intraday high of Rs 717.85 rising 7.83% against previous close of Rs 665.70 on BSE.
The share trades higher than 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages. In a year, the share has gained 314% but fallen 1.84% ince the beginning of this year. Market cap of the firm rose to Rs 6,434 crore on BSE. At 2:39 pm, the stock was trading 3.64% higher at Rs 689.80.
"Aarti Speciality Chemicals (ASCL), a wholly-owned subsidiary of Aarti Drugs, stands out to be one of the beneficiaries of the Government of India's recently approved Production Linked Incentive (PLI) for the pharmaceutical sector," the company said.
Aarti Speciality Chemicals received approval for 2-Methyl-5Nitro-Imidazole (2-MNI) with a committed production capacity of 4,000 MT per annum under target segment III (Key Chemical Synthesis Based KSMs/Drug Intermediates). The rate incentive will be 10 percent of sales value per annum for a period of 6 years - FY23 to FY28.
In February this year, government approved production linked incentive (PLI) scheme for pharmaceutical sector for financial year 2020-21 to 2028-29 to increase investment and production in diversified product categories. The scheme is expected to bring in investment of Rs 15,000 crore in the sector.
The scheme is expected to promote production of high-value products in the country and increase the value addition in exports. Total incremental sales of Rs 2,94,000 crore and total incremental exports of Rs 1,96,000 crore are estimated during six years from 2022-23 to 2027-28, the government said in a release.
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