Aurobindo Pharma shares fell more than 11% today after the company announced that its entire board of directors, P. Sarath Chandra Reddy, had been detained by the Enforcement Directorate (ED).
Aurobindo Pharma shares fell 11.56 percent to Rs 479 on the BSE on November 10 after the Enforcement Directorate (ED) detained company director Sarath Reddy in the ongoing Delhi liquor scandal earlier today.
Following the arrests, the pharma company’s shares dropped to an intra-day low of Rs 464.50 per share, down 14% from its previous close, on stock markets.
Aurobindo produces a wide variety of medications, from antibiotics to antidepressants.
In addition to Reddy, Pernod Ricard’s Benoy Babu has been arrested under the Prevention of Money Laundering Act (PMLA) provisions.
In an exchange statement, Aurobindo Pharma acknowledged the arrest, adding, “the Company is in the process of verifying additional circumstances and will make subsequent disclosures as required.”
The Enforcement Directorate had previously conducted raids on the homes of both of the detained suspects.
In connection with the inquiry, the ED had also questioned Delhi Deputy Chief Minister Manish Sisodia and his personal aide.