Granules India share prices hit a record high of Rs 232.50 on Monday on the BSE, as promoters have been mopping up shares in small instalments. Promoters’ holdings increased to 44.28 per cent in the June 2012 quarter from 40.72 per cent in the March quarter.

According to recent disclosures to stock exchanges by the company, promoters have been buying in small quantities from the secondary market even after June-end. They also redeemed shares pledged with financial institutions. The stock jumped 8.44 per cent at Rs 226.05 on Monday with 3.46 lakh shares changing hands, against two-week average of 1.5 lakh shares. So far in 2012, Granules India has gained 265 per cent against the BSE Sensex return of 15 per cent and the BSE Health Care index’s 31.4 per cent.

World Bank-arm International Finance Corporation holds 10.25 per cent in the company. ISP Investco LLC, Ridgeback Capital Asia Ltd and Sparrow India Diversified Opportunities Fund are foreign institutions with significant exposure in the company.

Promoter C. Krishnaprasad said: “They diluted 31 per cent stake in 2006-07 to raise funds for expansion projects. This included setting up a new tablet unit, which is now operational.”

According to analysts, apart from the general fancy for mid-tier pharma stocks, expectations of better performance in the coming quarters are boosting the stock.

Aditya Damani of KM Global Finserv said the company’s fundamentals are encouraging. “We see major improvement in margins, which is expected to reflect in FY 13-14 financials.”

> badrinarayanan.ks@thehindu.co.in

> somasekhar.m@thehindu.co.in

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