Divi’s Labs Share Price Drop 4% as SBI Mutual Fund Reduces Stake

Divi’s Laboratories share price fell nearly 4% on Friday, February 21, after SBI Mutual Fund reduced its stake in the company.

The stock opened slightly lower at ₹5,960, compared to the previous close of ₹5,978.30. It later declined further, hitting an intraday low of ₹5,756.85, marking a 3.70% drop.

Despite this decline, Divi’s Labs has surged 55.6% in the past year, taking its market capitalisation to ₹1.53 lakh crore. The stock’s 52-week high is ₹6,285.45 (reached on December 3, 2024), while the 52-week low is ₹3,350 (recorded on March 27, 2024).

SBI Mutual Fund Trims Stake

SBI Mutual Fund sold 1,40,560 shares of Divi’s Labs on February 19, reducing its holding from 5.1005% to 5.0476% of the company’s paid-up share capital. The sale was disclosed in an exchange filing on February 20.

Over the past year, SBI Mutual Fund’s stake in Divi’s Labs has decreased by 200 basis points, falling from 7.0869% to 5.0476%.

Other Key Investors

Apart from SBI Mutual Fund, several major investors hold shares in Divi’s Labs:

• Life Insurance Corporation of India (LIC): 6% (as of Q3 FY24)
• Government of Singapore: 2.4%

About Divi’s Laboratories Limited

Divi’s Laboratories Limited is a global pharmaceutical company based in Hyderabad, India. It specialises in producing active pharmaceutical ingredients (APIs) and intermediates, as well as custom synthesis of generic APIs.

Conclusion

While Divi’s Labs saw a drop in share price due to SBI Mutual Fund’s stake reduction, it remains one of the top-performing pharma stocks, gaining over 55% in the past year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.