Shares of Monsanto plunged nearly 3 per cent on Thursday after the US parent company Monsanto Co said that it has withdrawn application seeking approval for the next generation genetically modified (GM) cotton seeds in India because of regulatory uncertainties. Monsanto Co holds around 72 per cent stake in Monsanto India, which is the only publicly listed Monsanto entity outside the US. Shares of Monsanto India closed 2.78 per cent down at Rs 2368.90. The scrip opened the day at Rs 2454.90 and touched a high and low of Rs 2454.90 and Rs 2362.70, respectively, in trade so far. Later, the scrip closed 2.78 per cent down at Rs 2368.90.
“Our decision to suspend this introduction in India is an outcome of the uncertainty in the business and regulatory environment, which includes the regulation of trait fees and introduction of the draft compulsory licensing guidelines,” Monsanto Spokesperson said in a statement to PTI.
For the quarter ended June 30, 2016, Monsanto reported a net profit of Rs 56.60 crore, down 9.86 per cent, against Rs 62.79 crore in the corresponding quarter a year ago. Net sales of the company fell by 9.14 per cent year-on-year to Rs 236.08 crore. Operating profit of the company slid by 15.26 per cent year-on-year to Rs 62.64 crore.
In the past one year, shares of the company slipped by 9.21 per cent to Rs 2436.75 till August 24, whereas BSE Sensex gained 9.01 per cent during the same period.