Shares of Aurobindo Pharma surged 8 per cent on the BSE on Monday to ₹998 on incentive booster. The company’s project for production of penicillin G has been approved by the Centre under the Production Linked Incentive scheme for promoting domestic manufacture of bulk drugs and active pharmaceutical ingredients.
The project has a committed production capacity of 15,000 tonnes of penicillin G with an investment of ₹1,392 crore.
The commercial production is projected to commence from 2023-24. The project will also enhance the company's backward integration in antibiotics and open-up new revenue streams to support its growth prospects, said analysts.