Scrip Watch

Insider in Panacea Biotec ~ up 30% ~ but Exchanges let it go!

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Insider in Panacea Biotec ~ up 30% ~ but Exchanges let it go!

On January 12, 2018, loss making, litigation led Panacea Biotec kept slumbering at Rs 230 levels with Volumes below 10000 on BSE

Suddenly it woke up on January 15, 2018 shooting up to Rs 250 levels with Volumes of over 100000

This morning it’s crossed Rs 300

Company : PANACEA BIOTEC LTD. 531349

Period: 12-Jan-2018 to 23-Jan-2018

All Prices in Rs

Date Open High Low Close WAP No. of Shares
12-01-2018   38.05  239.90   231.45  233.25  235.03 9,775
15-01-2018  231.00  266.95  231.00  253.35  255.36 1,19,748
16-01-2018  253.35  264.00  252.15 253.70  257.60 24,406
17-01-2018  254.80  264.15 244.55  256.90  258.24 64,132
18-01-2018 262.90  283.95 260.00  264.70 272.82 2,61,399
19-01-2018 273.00 273.80 265.05 270.20  269.45 52,920
22-01-2018 273.35  291.00 265.00 288.45 282.78 1,26,136

BSE did seek a clarification from the company on  the morning of January 16, 2018

https://www.bseindia.com/corporates/anndet_new.aspx?newsid=8304f7c6-8c7d-4074-b2ba-d21cdc5d1e3f

& of course Panacea did send it a reply the same day

http://www.bseindia.com/xml-data/corpfiling/AttachHis/41beb1d5-3505-4dc3-8852-ed5ab92889a2.pdf

It’s signed by Vinod Goel, Group CFO & Head Legal & Co Sec with a paragraph extract as below

“Further, the Company believes that there is no pending information/ announcement which in its opinion may have a bearing on the Volume behaviour in the scrip of the Company”

BSE of course, as is bound, put up this clarification for public view on their website

Wow ! because then promptly two days later on January 18, 2018 the Company makes a big Announcement being delighted to announce a collaboration through two long term agreements  with Serum Institute of India Pvt Ltd  & it’s subsidiary  for two Vaccines which have huge Global Potential

http://www.bseindia.com/xml-data/corpfiling/AttachHis/5a977535-fd5c-4298-91e8-5551146c4071.pdf 

This too is signed by Mr Vinod Goel.I’m sure he has a good explanation for this & I for one would love to hear it.Did he not know about the Collaboration just two days before he announced it ? Nah! ~ Of course he was not obliged to disclose it on January 16,2018?…but he could have worded his January 16,2018 clarification better

The Volumes on NSE of course are larger than BSE

In light of the big announcement by Panacea on January 18,2018,just two days after company claimed there is no pending information or announcement that could have affected Volume behavior the Exchanges must follow through with Panacea on this .It’s also easy to bring up who brought the shares of the company from January 15 to the morning of January 18,2018 before the Public Announcement of the tie up

They obviously knew before hand

That’s why the Price has moved past Rs 300 this morning with view that these vaccines could be game changers and literally life savers for Panacea if they achieve Scale Sales as potential declared in the press release as above.a ‘beaming’ Mr Adar Poonawala of Serum Institute says it’s a historic deal as the release states.Dr Rajesh Jain of Panacea too is buoyant

That’s 30% up in the Share Price of Panacea in seven trading days from January 15,2018 of which three trading days clearly were pre announcement

This is exactly what I meant even in my last post on Scooters a few days ago where I’ve said

the Investors would be fantastically served if Companies notifications & clarifications are not just accepted at face value & are followed up diligently on full disclosures & transparency (there are comprehensive Corporate Governance Listing & Company Act stipulations)  & there is integrity of purpose & not merely contractual obligations for the sake of it that are showcased & filed away

Agreed, the Volume of Work can be daunting what with the hundreds of Notifications & Clarifications coming in daily to the Exchanges…quite often when I read such,I have strongly felt there were more serious questions that arise that need answers from the companies & which are not forthcoming,inadvertently or deliberate.Therefore the Exchanges need to continuously follow up with the companies raising the right questions for them to answer

Will the Exchanges continue playing the Beatles hit ” Let it be,let it be….”  ?

Disclaimer : Do not Own Panacea Biotec

P S : It’s raced away to Rs 337 just before 11 am on the bourses this morning

 

 

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