Wockhardt declined 2.23% to Rs 300.50 at 13:21 IST on BSE on reports the Securities Appellate Tribunal has upheld the Securities & Exchange Board of India order against the chief financial officer of Wockhardt and relatives guilty of insider trading
The stock hit a high of Rs 304 and a low of Rs 291.35 so far during the day. The stock had a 52-week high of Rs 448 on
The company’s current equity is Rs 54.72 crore. Face value per share is Rs 5.
The current market price of Rs 300.50 discounts its Q1 March 2008 annualised EPS of Rs 0.26 by a PE multiple of 1155.
Securities Exchange Board of India (Sebi) in an order dated 30 November 2006, had charged them with trading on the basis of unpublished price sensitive information and had fined each of them Rs 5 lakh.
According to Securities Appellate Tribunal (SAT), Rajiv Gandhi, who is still the company secretary and chief financial officer of Wockhardt along with his wife Sandhya Gandhi and sister Amishi Gandhi are guilty of insider trading and the penalty levied on them is not on the higher side keeping in view the seriousness of the charge and, therefore, it does not call for any interference in appeal.
The case goes back to the period between December 1998 and September 1999 when the three were found to have traded Wockhardt shares based on unpublished price sensitive information.
The case set up by the adjudicating officer was that the results for the quarter ending December 1998 showed a negative performance of the company over the previous quarter and it was because of this reason that they sold 3,600 shares on 21-22 January 1999 before the board meeting and before the market could react to the financial results.
Wockhardt has presence in different drug segments like inflammation and pain, anti-infective, cough syrups, corticosteroids and medical nutrition.
The company’s net profit declined 98.7% to Rs 0.7 crore on 12.6% rise in sales to Rs 329.70 crore in Q1 March 2008 over Q1 March 2007.
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