Brooks Laboratories shares hit a lower circuit limit of 10 per cent at Rs 58.30 on BSE on Friday after the market regulator Securities and Exchange Board of India (Sebi) barred the company and its top executives from the securities markets for five years. Meanwhile, Sensex was up 103.23 points, or 0.40 per cent, at 25,725.40.
Around 1.04 lakh shares exchanged hands on the Bombay Stock Exchange on Friday, compared with an average volume of 47,000 thousand shares in the past two weeks.
The scrip hit a high of Rs 60.75 and a low of Rs 58.30 during the day. Brooks Laboratories shares hit a 52-week high of Rs 106.80 on July 31, 2015 and a 52-week low of Rs 36.15 on February 28, 2015.
Sebi on Thursday barred Brooks Laboratories and its top executives from the securities markets for five years for siphoning off funds and concealing of material information in its initial public offer (IPO) documents.
In its order, Sebi said Brooks and its directors and officers are prohibited from buying, selling or dealing in the securities market, in any manner whatsoever, for a period of 5 years. However, Sebi added that prohibition already undergone by Brooks, its directors and officers pursuant to the interim order dated December 28, 2011 shall be taken into account for the purpose of computing the period of prohibition imposed in this order.
Meanwhile, Sebi permitted Brooks to utilise the funds lying in the escrow account for the objects disclosed in the Prospectus.
Brooks Laboratories is a smallcap pharmaceutical contract research and manufacturing services company with market capitaliation of Rs 104.81 crore. In the past one month the share price of the company declined 28.77 per cent to Rs 64.75 on September 10. Sensex plunged 8.82 per cent during the same period.
For the quarter ended June 2015, the company posted a consolidated net profit of Rs 1.51 per cent crore, down 1.37 per cent, against Rs 1.54 crore in the corresponding quarter a year ago.