The company made this announcement during trading hours on Thursday, 18 March 2010, when the stock had risen 3.55% to Rs 339.40.
Meanwhile, the BSE Sensex was up 28.78 points, or 0.16% to 17,548.04.
On BSE, 4.16 lakh shares were traded in the counter as against an average daily volume of 2.57 lakh shares in the past one quarter.
The stock hit a high of Rs 352.35 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 336.50 so far during the day. The stock had hit a 52-week low of Rs 70.20 on 18 March 2009.
The stock has risen 6.36% in two trading sessions from a recent low of Rs 327.75 on 17 March 2010.
The mid-cap stock had outperformed the market over the past one month till 18 March 2010, gaining 14.22% as compared to the Sensex's 7.30% rise. It had also outperformed the market in the past one quarter, surging 47.69% as compared to the Sensex's return of 4.78%.
The company's equity capital is Rs 43.21 crore. Face value per share is Rs 10.
The current price of Rs 348.60 discounts the company's Q4 December 2009 annualized EPS of Rs 19.56, by a PE multiple of 17.82.
As per the restructuring plan, Aspen will sell its 50% ownership in the oncology joint ventures (JVs) to Strides for a consideration of $117 million (around Rs 530 crore). Strides will license the existing and future oncology products to Pharmacare, an Aspen group company, for certain territories.
Meanwhile, Strides Arcolab has revised its guidance for the financial year 2010. It said the group revenues are expected to increase by 35-37%, to Rs 1775 crore--Rs 1825 crore. The earnings before interest depreciation taxes and amortization (EBIDTA) growth is pegged at over 70% with EBIDTA margins in the range of 20-21%. Prior to the restructuring plans, the guidance for EBIDTA margins envisaged in the range of 19-20%.
On 16 March 2010, Strides Arcolab said it is in discussions to increase its stake in Australia's Ascent Pharmahealth to 100% from current 57%.
Strides Arcolab's net profit fell 84.8% to Rs 19.67 crore on a 76.6% rise in sales to Rs 258.48 crore in Q4 December 2009 over Q4 December 2008.
Strides Arcolab manufactures a variety of pharmaceutical products that are distributed in over 35 countries. The group's therapeutic portfolio includes steroids, cephalosporins, antibiotics, vitamins, and analgesics. Strides Arcolab also runs a contract research and manufacturing division.
Promoters have pledged 68.96 lakh shares representing 17.15% of the equity capital of the company. The total promoter shareholding in the company is 25.69% (as on 31 December 2009).