Aurobindo Pharma opened weaker at Rs.601 v/s yesterday’s close of Rs.613.80, going down further to an intra day low at Rs.589.50. It has recovered since then and it is currently just about in the green at Rs.614.55.
The stock went down after SEBI imposed a total penalty of over Rs 22 crore on Aurobindo Pharma Ltd (APL), its promoter PV Ramprasad Reddy, his wife P Suneela Rani and other connected entities for violating insider trading norms. This was based on the trading investigation carried out by SEBI during the period from July 2008 to March 2009.
The probe found that the promoter entities traded in the scrip of APL based on unpublished price sensitive information or UPSI pertaining to the company's Licensing and Supply Agreements with Pfizer Inc and made "unlawful gains".