Neuland Laboratories shares crack 7% after likely 3.8% stake offloaded via block deal

Shares of Neuland Laboratories on Thursday cracked 7.2% to an intraday low of Rs 15,725 on the BSE following a block deal involving nearly 4.8 lakh shares, representing a 3.8% stake in the company.

The floor price is said to be fixed at Rs 15,428, which represents nearly a 9% discount from the previous day's closing price.

While the official parties of the transaction are not currently known, ET-Now reported that Smallcap World Fund was likely the seller, aiming to raise approximately Rs 747 crore through this stake sale.


The fund, which previously held a 3.77% stake in Neuland Laboratories, appears to have exited its position.

Around 10:15 am, the company’s shares were trading 3.5% lower at Rs 16,357.20 on the BSE. The block deal triggered a notable surge in trading volumes, with around seven lakh shares changing hands.

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The transaction occurs against the backdrop of a more than 9% decline in the stock's value over the past week.

However, in the last one year, six months, and on a year-to-date basis, the stock has given multibagger returns of 221.6%, 154.6% and 207.3% respectively.

On charts, the stock is placed below its 10-day exponential moving average (DEMA) but above the 20, 50, 100, and 200 DEMA while standing near the 61 mark on the relative strength indicator (RSI).

Neuland Laboratories is engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets.

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