The shares of Aarti Pharmalabs Limited dropped 3.79% to day’s low of ₹666 per share on Friday as the Gujarat Pollution Control Board (GPCB) directed the pharma company to shut down its Vapi plant.
The company was also ordered to deposit a bank guarantee of ₹2,50,000 for compliance assurance and an interim Environment Damage Compensation amount as and when decided by the GPCB.
"We hereby inform the Exchanges that the Company has received direction from the Gujarat Pollution Control Board, (‘GPCB’) under Section 33(A) of the Water (Prevention and Control of Pollution) Act, 1974, on January 02, 2025, to close the operations at its plant, located at Plot No. 22/C -1, Phase 1, GIDC, Vapi -396195 Tal; Pardi , Dist: Valsad, Gujarat, India. Further, the GPCB has asked to submit a bank guarantee of Rs. 2,50,000 for compliance assurance at the time of revocation and has also ordered to deposit interim Environment Damage Compensation amount as and when decided by the GPCB," said the company in an exchange filing.
However, the company stated that it is taking the immediate and appropriate measure to comply with the regulatory authorities and address the concerns raised by them.
Aarti Pharmalabs Limited manufactures Active Pharmaceutical Ingredients (API), Pharmaceutical Intermediates, New Chemical Entities (NCE), and Xanthine Derivatives.
At close on Friday, the shares of Aarti Pharmalabs Limited were 3.12% lower at ₹670.65 per share as compared to the previous close of ₹692.25 per share on the National Stock Exchange (NSE).
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