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Syngene International Block Deal: Share Price Gains 1%

Updated on: Dec 10, 2024, 1:42 PM IST
Syngene International rebounds 1% after a ₹706 crore block deal. Pharma stocks faced turbulence as the US excluded the BioSecure Act from a key bill.
Syngene International Block Deal: Share Price Gains 1%
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On December 9, 2024, shares of pharmaceutical companies involved in contract drug manufacturing faced a challenging trading session. The downturn followed the US decision to leave the BioSecure Act out of a significant defence bill. This proposed legislation was intended to blacklist certain Chinese companies from participating in US-funded research and contracts, potentially paving the way for Indian firms to gain more business. However, its exclusion dealt a blow to market expectations.

Syngene International’s Block Deal 

Shares of Syngene International bore the brunt of the market sentiment, tumbling by 5.6% on December 9. However, the stock rebounded on December 10, with gains of over 1%. The resurgence was driven by a significant block deal, where 82.2 lakh shares—equivalent to 2% equity—were exchanged at ₹858.5 apiece, amounting to ₹706 crore.

Interestingly, early trading volumes on December 10 surpassed those of previous sessions, suggesting heightened investor activity despite the initial dip. As of the September quarter, Biocon Ltd retained a controlling 54.45% stake in Syngene International.

Financial Performance: Q2FY2025 Highlights

Syngene International’s financial performance for the September quarter reflected a mixed picture. The company reported revenue of ₹891 crore, a 2.1% decline from ₹910 crore in the same quarter the previous year. For the half-year ending September 2024, total revenue stood at ₹1,680.7 crore, slightly below the ₹1,711.2 crore recorded in 2023.

Net profit for Q2 FY2025 also dropped, registering ₹106.1 crore compared to ₹116.5 crore in Q2 FY2024—a decline of 8.9%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 10, 2024, 1:42 PM IST

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