Shilpa Medicare Hits 52-Week High on AGES GMP Certification

18 Apr 2024 , 01:37 PM

Shilpa Medicare's stock surged to a 52-week high of ₹558 in early trade on April 18 following the company's attainment of GMP Certification from AGES, Austria. At the time of writing, Shilpa Medicare's stock was trading at ₹538.60, showing a modest increase of 0.35% on the BSE.

AGES, Austria conducted an inspection of Shilpa Medicare's Unit 4 located in Jadcherla, Telangana, India, from January 22, 2024, to January 26, 2024, resulting in the issuance of GMP Certification post a successful inspection.

Notably, this unit is involved in the manufacturing, testing, and distribution of sterile injections, as well as non-sterile tablets and capsule finished dosage forms, catering to markets in the US, Europe, and other regions worldwide.

The GMP Certification obtained for this facility will enable the uninterrupted supply of medicines for commercial distribution to various European Union countries from this unit, reinforcing the company's commitment to quality and compliance.

Earlier in the month, Shilpa Medicare successfully raised ₹500 Crore through a Qualified Institutional Placement (QIP), reflecting investor confidence in the company's growth prospects.

The QIP involved the allotment of 1.09 Crore equity shares with a face value of ₹1 each to eligible institutional buyers, priced at ₹455 per share.

As of December 31, the promoters of Shilpa Medicare held a 50% stake in the company, indicating significant ownership and interest in its operations.

Despite posting a consolidated loss of ₹6.6 Crore for the quarter ended December FY23, compared to a profit of ₹9.56 Crore in the same period the previous year, Shilpa Medicare's strategic initiatives such as obtaining GMP Certification and successful fundraising underscore its resilience and long-term growth potential in the pharmaceutical sector.

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