Abbott India drops as parent gets exemption from making open offer

Abbott India slipped 1.22% to Rs 548 at 12:33 IST on BSE after Securities Exchange Board of India exempted Abbott India’s parent Abbott Laboratories, US, from making an open offer for the shares of the Indian company.

The stock hit a high of Rs 565 and a low of Rs 543 so far during the day. The stock had a 52-week high of Rs 618.25 on 7 January 2008 and a 52-week low of Rs 481 on 22 January 2008.

The company has an equity capital of Rs 14.47 crore. Face value per share is Rs 10.

The current price of Rs 548 discounts its Q1 March 2008 annualised EPS of Rs 39.12, by a PE multiple of 14.

The parent company Abbott Laboratories plans to buy back 5.83% of Abbott India's shares from the open market at a price not exceeding Rs 650 each. The proposed buyback would raise the shareholding of Abbott Laboratories in Abbott India to 68.94% from the current 65.14%.

Abbott India’s net profit rose 9.7% to Rs 14.15 crore on 10.9% increase in net sales to Rs 147.81 crore in Q1 March 2008 over Q1 March 2007.

Abbott India derives most of its revenues from insulin and related products.