Natco Pharma said that the committee of directors allotted1,61,775 equity shares of Rs 10 each at a premium of Rs 1,190 a share on preferential basis other than cash to the promoters of Natco Organics.

Shares of the company declined Rs 135.3, or 9.17%, to settle at Rs 1,340. The total volume of shares traded was 6,602 at the BSE (Tuesday).

The stock had outperformed the market over the past one month till Dec. 15, 2014, rising 1.67% compared with the Sensex's 2.59% decline. It outperformed the market in past one quarter, gaining 3.47% as against 1.88% rise in the Sensex.