Neuland Laboratories Bulk Deal: Capital Group Exits Company Via Rs 756 Crore Stake Sale
Neuland Laboratories witnessed a sharp 5.69% drop in its stock price after Capital Group's Smallcap World Fund sold its entire 3.77% stake for Rs 756 crore in a bulk deal.
Public shareholder Smallcap World Fund, Inc., a Capital Group arm, offloaded stock worth Rs 756 crore in Neuland Laboratories Ltd., exiting the company on Thursday, according to data from the National Stock Exchange.
Smallcap World Fund sold a 3.77% stake in the company, which aggregated to 4.84 lakh shares for the cost of Rs 15,618.16 per share. The buyers were not disclosed.
Smallcap World Fund held a 3.77% stake in the pharmaceutical company as of September 2024.
Neuland Laboratories is a global active pharmaceutical ingredient contract development and manufacturing organisation. The company works with biotechnology and pharmaceutical firms to help design, develop, and manufacture complex active pharmaceutical ingredients.
The company specialises in developing small molecules and peptides for clinical trials, which is expected to provide seamless scalability from initial stages to full-scale commercial manufacturing.
Capital Group is a US-based financial services company, regarded as one of the oldest and largest investment management organisations with a market capitalisation of more than $7.3 trillion, according to the company.
Smallcap World Fund is a Capital Group arm that focuses on small-cap investing and claims to target "some of the world’s fastest-growing and most innovative companies, with market capitalisations of up to $6 billion at the time of purchase" for investment.
Shares of Neuland Laboratories Ltd. closed 5.69% lower at Rs 15,989.35 apiece on the NSE, compared to a 0.38% increase in the benchmark Nifty 50.
The stock has risen 202.18% on a year-to-date basis and 217.25% over the past 12 months.
The stock fell as much as 7.96% to trade at Rs 15,605.00 apiece.
Out of the two analysts tracking the company, two have a 'buy' rating on the stock, according to Bloomberg data.
The average of 12-month analysts' consensus price targets implies a potential upside of 10.2%.
