NEW DELHI: Shares of BSE on Monday surged 5 per cent in early trading only to close in the red, wiping off all of its gains. The stock had gone ex-bonus today and hence the price had adjusted to one-third of the prevailing prices.
This morning buying on the counter points towards a lack of awareness among some investors. “The prices of stocks undergoing corporate actions like bonuses, splits, and rights issues drop in adjustment on the ex-date.
Investors assume that they've lost money or think the stock has become cheaper and buy and sell in panic. But the fundamentals don't change,” brokerage firm Zerodha said in a Tweet.
Though, another positive that has happened in the case of BSE is that a large number of its shares were acquired by Vanguard in a bulk deal on Thursday. However, the stock had already rallied quite a bit in anticipation of the bonus issue and the buying.
Jubilant mood!
While Jubilant Foodworks is still struggling in the wake of the resignation of its CEO, another one of its group companies, Jubilant Pharmova, found a reason to celebrate.
Jubilant Pharmova announced that one of its subsidiaries received Abbreviated New Drug Application (ANDA) final approval for Doxepin Hydrochloride Capsules, 10 mg, 25mg, 50mg, 75mg, and 100mg, the generic version of Sinequan, which is used for the treatment of anxiety, depression, and other target symptoms of psychoneurosis.
Following the news, the stock jumped over 10 per cent on BSE.
The company said Jubilant’s Pharmaceuticals business had a total of 98 ANDAs for oral solids filed in the US, of which 61 have been approved and 4 Injectable/Opthalmic filings, of which 2 have been approved.
Split splash
PCBL, a carbon black manufacturer from Sanjiv Goenka Group, on Monday, fixed the record date for its proposed stock split.
“Committee of the Board of Directors of the company has fixed Tuesday, 12 April 2022 as the record date for determining the eligibility of shareholders, with regard to the sub-division of 1 equity share of the face value of Rs. 2/- per share fully paid up to 2 equity shares of the face value of Re. 1/ per share fully paid,” said the company.
Following the announcement, the stock climbed over 3 per cent. (Text and Photo: economictimes.indiatimes.com)
