The announcement was made during trading hours today, 5 February 2014.

Meanwhile, the S&P BSE Sensex was up 49.27 points or 0.24% at 20,261.20.

On BSE, so far 8,008 shares were traded in the counter as against average daily volume of 6,876 shares in the past two weeks.

The stock was volatile. The stock tumbled as much as 11.4% at the day's low of Rs 275 so far during the day. The stock rose as much as 3.94% at the day's high of Rs 322.65 so far during the day.

Neuland Laboratories' board of directors at its meeting held on 5 February 2014, approved the constitution of a sub-committee called the Rights Issue Committee to finalize the rights ratio, issue price, record date and all other matters relating to the proposed rights issue.

If one assumes that the company raises Rs 25 crore from rights issue at the ruling market price, it will result in equity dilution of 11.05%.

Neuland Laboratories' net profit surged 108.56% to Rs 6.82 crore on 22.47% growth in total income from operations to Rs 131.54 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during trading hours today, 5 February 2014.

Neuland Laboratories is a pharmaceutical firm engaged in the manufacture of APIs, contract research or contract manufacturing services.