Aurobindo Pharma, which had closed on Friday at Rs.923.65, opened with a gap today at Rs.930 and went on to hit an intraday high at Rs.977.15. Its 52-week high is not too far at Rs.996.15.

The stock price rose after the Govt gave the company approval under the Production Linked Incentive (PLI) scheme for promotion of domestic manufacturing of critical bulk drugs.

Under this PLI scheme, the company has received approval for setting up plants for production of Penicillin-G and 7-ACA, with committed production capacity of 15,000 MT and 2,000 MT.

This news from PTI and not by the company, stated that the committed investment for Penicillin G is Rs 1,392 crore, and for 7-ACA is Rs 813 crore.

It has also received approval for setting up plant for Erythromycin Thiocyanate (TIOC), with committed production capacity of 1,600 MT at a committed investment of Rs 834 crore.

Commercial production is projected to commence from the financial year 2023-24 (FY24).