Shares of speciality chemicals manufacturer Aarti Industries hit a 52-week low of Rs 642 on October 19, a day ahead of its record date for pharma demerger business.
The stock ended the day at Rs 683.70, lower by 8.2 percent on the National Stock Exchange. The stock is down 27 percent in the last six months and 32 percent year-to-date.
As on record date, shareholders will receive one equity share of Aarti Pharmalabs for every four shares of Aarti Industries. The company had announced the demerger last year in August to focus on the opportunities within each sector separately.
Listing of the de-merged pharma business is likely to take place by mid-December, according to reports.
According to global brokerage firm Morgan Stanley's September report, Aarti Industries is staring at raw material sourcing challenges and slow project ramp-up. It has downgraded Aarti Industries to ‘underweight’ and reduced its price target to Rs 685 from Rs 957.
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