Suven Life freezes at 20% upper circuit as board to mull rights issue

The stock had hit a 52-week low of Rs 62 on June 20, 2022, and has corrected 50 per cent from its record high level of Rs 124 touched on October 8, 2021

Shares of Suven Life Sciences were locked in the 20 per cent upper circuit band at Rs 76.60 on the BSE on Tuesday on the back of heavy volumes after the company announced that its board will meet on Friday, June 24, 2022 to consider rights issue plan. In comparison, the S&P BSE Sensex was up 1.8 per cent at 52,521 points at 03:03 PM.

The counter saw huge trading volumes with a combined 3.02 million equity shares, representing 2 per cent of total equity of Suven Life, changing hands on the BSE and NSE. There are pending buy orders for 75,000 shares on both the exchanges.

"A meeting of the board of directors of the Company is scheduled to be held on June 24, 2022, to consider matters related to raising of funds through issue of equity shares of the Company on rights basis to the existing equity shareholders of the Company," Suven Life said in a exchange filing on Monday after market hours.

The stock of the healthcare research, analytics & technology company had hit a 52-week low of Rs 62 on June 20, 2022. It has corrected 50 per cent from its record high level of Rs 124, touched on October 8, 2021.

For the financial year 2021-22 (FY22), Suven Life's consolidated loss widened to Rs 122 crore from Rs 72 crore in FY21. The company reported revenue of Rs 17 crore in FY22 against Rs 21 crore in FY21.

Suven, a Biopharmaceutical company, engaged in Drug Discovery and Development of New Chemical Entities (NCEs) in Central Nervous System (CNS) disorders targeting unmet medical needs, globally. Covid-19 impacted the ongoing clinical study of SUVN-G3031 in enrollment and withdrawal of patients from the study leading to increased timeframe and cost.

"Since last reporting period, the Company has been granted 19 patents for its innovative drug discovery covering ARIPO, Australia, Brazil, Eurasia, Hong Kong, India, Israel, Japan, Mexico, New Zealand, Singapore, Sri Lanka, and USA," Suven Life said while announcing March quarter results on May 7, 2022.