EVOQ Remedies tanks 16%, down 24% in two days after promoters' dramatic stake sale

Promoters Bhumishth Narendrabhai Patel and Payal Bhumishth Patel sold 11.5 lakh shares each.

Shares of EVOQ  Remedies slumped 16 percent to Rs 13 in the morning session on January 15, tanking for the second consecutive day after the promoters of BSE-listed SME company dumped about 72 percent of their stake as the stock hit a new high.

At 11 am, the stock was quoting at Rs 13.30 on the BSE, down 14 percent from previous close.

The stock surged 20 percent on January 10 after the company revealed a substantial export order. It added another 4 percent the next day.

But the promoters sold a significant portion of their holdings through open market sales on January 11, leading to a dramatic fall in the price. On January 12, the stock ended 8 percent lower.

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On January 10, EVOQ Remedies said it secured an export order worth Rs 136 crore, nearly seven times its market capitalisation of Rs 22 crore. The order, obtained from Marlexx Pharma, a US-based company, involves supplying various active pharmaceutical ingredients (APIs).

Also read: SME Shocker: Promoters cut stake from 73% to 20% in EVOQ after huge order win

The news prompted positive investor sentiment, leading to increased demand for the stock.

SME stocks, traded in lots, often experience sharp surges in response to heightened demand, according to market observers.

Soon, Bhumishth Narendrabhai Patel and Payal Bhumishth Patel sold 11.5 lakh shares each.

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