Shivalik Rasayan Shares Surge Despite US FDA Observations

10 Apr 2024 , 01:24 PM

Shivalik Rasayan shares witnessed a significant surge on April 10 despite receiving seven observations from the United States Food and Drug Administration (US FDA) for its API facility in Bharuch, Gujarat.

The stock soared by as much as 9.76% to reach a high of ₹618.4 on the NSE during morning trading sessions, marking a reversal from a four-day downward trend. According to the company’s filing dated April 9, the US FDA conducted an inspection at Shivalik Rasayan Limited’s API facility in Bharuch, Gujarat, from April 1 to April 9, 2024.

Despite the US FDA’s observations, Shivalik Rasayan’s share price rallied by 5% in early trade on April 10. At the time of writing, , the stock was trading at ₹592 on the BSE, up by 5.22%.

Shivalik Rasayan reported that the US FDA inspection concluded successfully with seven procedural observations. The company assured that it would respond to these observations within the stipulated time frame.

Established with a focus on producing effective and eco-friendly chemicals for plant protection, Shivalik Rasayan Ltd. (SRL) is the largest producer of Dimethoate Technical and the second largest producer of Malathion Technical in India. Additionally, it manufactures organophosphorus-based insecticides and chemicals.

With the recent acquisition of Medicamen Biotech Ltd., SRL has expanded into the pharmaceutical segment. It now focuses on developing active pharmaceutical ingredients and their finished dosage forms, particularly in the areas of Oncology and Non-Oncology, leveraging its state-of-the-art Research and Development Centre.

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