Shares fell 10.2% in Cohens Lifesciences following the resignation of V Prasad Raju.
Cohens Lifesciences Share: Wednesday brought huge turmoil for a company in the pharma sector. What investors of Cohens Lifesciences saw today has increased their concern. As soon as the market opened, such selling of the company’s shares started that the stock fell by more than 10 percent. The share which was close to Rs 854.50 yesterday, fell to a low of Rs 767.10 during trading today. This one-day fall also gave a big blow to the market cap (market capitalization) of the company and it came down to Rs 31,372 crore.
This sharp fall left investors breathless. The question arose that what happened that investors suddenly lost their trust in this pharma company? The reason behind this panic and selling is a big and sudden change in the top management of the company, which has shaken the market sentiment.
The company’s ‘captain’ left the ship
The news is that the company’s Managing Director (MD) and Director V Prasad Raju has resigned from his post on October 28. For any big company, the post of MD is like its backbone. The MD gives direction to the day-to-day functioning and future strategies of the company. When such a big executive suddenly decides to leave the company, an atmosphere of uncertainty and distrust is created among the investors.
Investors start to fear that perhaps everything is not well inside the company, or the times ahead may be challenging. Due to this panic, investors start selling their shares. Exactly the same happened with Cohens Lifesciences. As soon as the news of MD’s resignation spread, investors started selling and the stock fell by more than 10%.
Reason behind resignation ‘personal’
In the information given to the stock exchange, the company said that Prasad Raju has given ‘personal work’ as the reason for his resignation. He said that he is taking this decision for personal reasons. However, Raju is not separating from the company immediately. He will remain with the company to ensure a ‘smooth transition’. This simply means that he will leave the post only after properly handing over all his responsibilities to the new officer and explaining his work to him. According to the company, Raju will step down from the position of Director and Key Managerial Personnel at the end of business hours on October 28, 2025, but under his contract, he will remain available for transition.
Along with the news of Raju’s departure, the company also announced new leadership. Himanshu Aggarwal has been appointed Additional Director and Whole-Time Director of the company with effect from October 29.
What does the company do?
Cohens Lifesciences is not a small company. It is a Contract Development and Manufacturing Organization (CDMO). If we understand in simple language, this company does the work of manufacturing medicines and related essential chemicals (API) on contract for the world’s biggest pharmaceutical and biotechnology companies. The company’s focus is on manufacturing complex molecules, active pharmaceutical ingredients (APIs) and specialty chemicals, which is a specialization. The company’s business model is based on ‘strategic acquisitions’ i.e. strengthening its network by buying other companies.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.