Pharmaceutical company SeQuent Scientific on Wednesday announced that it has called off the acquisition bid for Tineta Pharma. The company had announced last November that it had entered into a share purchase agreement to acquire a 100 percent stake in Tineta from its promoters.
The transaction contemplated under the share purchase agreement, however, failed to materialise and hence, SeQuent will no longer acquire Tineta Pharma, according to an exchange filing on Wednesday.
Investors reacted positively to the news as the stock shot up 20 percent and hit an intraday high of Rs 74.80 on March 9.
Shares of SeQuent Scientific settled at Rs 74.10 on the National Stock Exchange, up 18.85 percent from the previous close. Additionally, two crore shares have been traded on the exchanges so far, as against the one-month daily traded average of 8 lakh shares.
The stock has experienced a steady decline since reaching a record high in July 2021. Since then, the stock has shed over 79 percent of its price on the back of a consistent decline in its bottomline across recent quarters.
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Given that the sharp decline in the stock has pushed it into an oversold territory, Nilesh Jain, AVP-Derivative and Technical Research at Centrum Broking, suggested a pullback to levels around Rs 70, but cautioned investors against aggressive long bets due to the stock's weak trend.
For those who already hold long positions in the stock, Jain recommended trading with a stop loss of Rs 56.
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