Lyka Labs' shares were held at the upper circuit for the third day in a row, up 5% at Rs 135 on the BSE on Wednesday, also its 52-week high, after Ipca Laboratories bought 1 million shares of the pharmaceuticals business in open market trades on Tuesday.
Ipca Labs' stock was trading 1% lower at 2037.80, while Lyka's stock was trading 5% higher, compared to a 0.5 percent increase in the Nifty pharma index.
For the second day, one of India's major pharmaceutical companies, IPCA Laboratories Ltd (IPCA), continued to buy more shares of another publicly traded pharmaceutical company, Lyka Labs Ltd. On November 23, 2021, IPCA purchased 1,774,142 equity shares in Lyka Labs Ltd through a market buy at a price of Rs. 126.11 per share.
Lyka Labs Ltd., founded in 1976, is a Small Cap business in the Pharmaceuticals sector with a market capitalization of Rs 368.95 crore. Lyka Labs Ltd. is a pharmaceutical firm that was founded in 1976 under the Companies Act of 1956 and specializes in the production and marketing of injectables, lyophilized injectables, and topical formulations.
Lyka reported revenues of 109.87 crore for the six months ended September 30, 2021.
Ipca Labs stated that it does not currently have any lyophilized injectables business. According to Ipca, acquiring a stake in Lyka Labs will allow the company to enter the lucrative lyophilized injectables industry in India and the rest of the world.
Lyka Labs will also benefit greatly from the Company's marketing expertise in the branded generic formulations industry in the rest of the globe markets of Africa, Latin America, Southeast Asia, and the Middle East, where Lyka Labs Ltd. presently does not operate, according to Ipca.