Galaxy Surfactants hits new low, recoups

Galaxy Surfactants hit a new life time low today at Rs.1430. But from this level, it recouped and bounced back to Rs.1460 levels, down some 2.5%.

The company announced yesterday after market closure that it had received 13 observations under Form 483 from the US FDA, which concluded the inspection on 30th March’18. This was for two plants at Tarapur that make two products - Octyl Methoxy Cinnamate and Octocrylene; products used as an ingredient in making sun blocks.

The good news here is that all observations are procedural in nature and none of them are related to any data integrity issues. The management stated it would provide a comprehensive response to the observations of USFDA within the stipulated time.

The management also stated the revenue from the US markets for these products is less than 1% of its consolidated revenue and thus does not expect any financial impact.

This stock got listed on the bourses on 2nd Feb, 2018. It had made a very smart debut at Rs. 1,520 v/s IPO price of Rs.1,480.