Shares in Indian drugmaker Strides Arcolab plummeted about 10 percent on Thursday,wiping out early gains following its sale of a unit to Mylan for $1.6 billion,as investors were unhappy with Strides’ dividend payout,traders said.
The shares had initially gained as much as 13.2 percent.
The company declared a 20 percent dividend,or 2 rupees per share,for 2012.
Strides’ injectables unit Agila Specialties generated $700 million in sales and an operating profit of $86 million in year 2012,Strides said.
The Bangalore-based drugmaker said it planned to spend $700 million to $800 million at pretax level on shareholders.
Valued at $1.1 billion,shares in Strides Arcolab were down 9 percent at 896.15 rupees by 0411 GMT when the Mumbai market was up 0.55 percent.
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