Sun Pharma, Ranbaxy stocks slip on court stay on merger
30th april 2014
Mumbai: Shares of Sun Pharmaceuticals Industries Ltd and Ranbaxy Laboratories Ltd
fell in early trade on BSE after Andhra Pradesh high court put the
proposed merger between the two drug makers on hold on Tuesday.
At 10.22am, shares of Sun Pharma were trading at Rs.631.95
apiece on BSE, down 1.16% from their previous close even as India’s
benchmark Sensex Index rose 0.79% to 22,643.41 points. Shares of Ranbaxy
were trading at Rs.473.4 apiece on the exchange, down 2.03%.
The Andhra Pradesh high court, acting on a writ petition
filed by a group of investors, on Tuesday asked the stock exchanges and
market regulator Securities and Exchange Board of India (Sebi) not to
approve the merger deal announced in April, untill allegations of
insider trading involving Sun Pharma’s promoters are investigated.
A Sun Pharma subsidiary, Silverstreet Developers LLP,
purchased a large volume of Ranbaxy shares just a few days before Sun
Pharma and Ranbaxy announced an all stock merger deal, which was valued
at $3.2 billion.
A group of investors, who approached the Andhra Pradesh
high court last week, alleged that Sun Pharma promoters or people
directly related to Sun Pharma, who were privy to the soon-to- be-
announced merger, were involved in the share purchase and profited from
it, violating Sebi’s insider trade rules.
“There shall be interim status quo as prayed for,” said justice P. Naveen Rao in response to the petition.
Mint has reviewed the interim order.
A spokesperson for Sun Pharma said that the company has not received any such communication.
“At Sun Pharma, we hold ourselves to the highest
standards of corporate governance and business ethics. Our code of
conduct serves as a compass that guide the actions of our employees and
directors ensuring consistent and uncompromising integrity as we build
trusted relationships around the world. The matter related to purchase
of shares of Ranbaxy Laboratories Ltd does not violate insider trading
rules,” he said in an email, adding that the company would take
appropriate action as advised by its legal counsel.
The writ petition was filed by two individual investors
Tammali Shiva Kumar and Undi Venkatasubbaraju seeking the court to
“restrain” for any scheme of amalgamation or merger during the pendency
of the petition.
The petitioner alleged “insider trading” in Ranbaxy shares before announcement of the deal on 6 April.
The petitioners requested the court to direct Sebi not to
give its in-principle approval to the merger or an arrangement or an
amalgamation of Sun Pharma and Ranbaxy. They sought court to direct Sebi
to “ investigate” insider trading in Ranbaxy shares and take
appropriate action under the law.
The petitioners also sought action against Sun Pharma and its wholly-owned arm Silverstreet Developers.
The court has issued notices to Sebi , BSE, NSE, Sun
Pharma, Ranbaxy and its owner Daichii Sankyo Co. Ltd, and Silverstreet
to respond to the petitioners’ charges.
Mumbai: Shares of Sun Pharmaceuticals Industries Ltd and Ranbaxy Laboratories Ltd
fell in early trade on BSE after Andhra Pradesh high court put the
proposed merger between the two drug makers on hold on Tuesday.
At 10.22am, shares of Sun Pharma were trading at Rs.631.95
apiece on BSE, down 1.16% from their previous close even as India’s
benchmark Sensex Index rose 0.79% to 22,643.41 points. Shares of Ranbaxy
were trading at Rs.473.4 apiece on the exchange, down 2.03%.
The Andhra Pradesh high court, acting on a writ petition
filed by a group of investors, on Tuesday asked the stock exchanges and
market regulator Securities and Exchange Board of India (Sebi) not to
approve the merger deal announced in April, untill allegations of
insider trading involving Sun Pharma’s promoters are investigated.
A Sun Pharma subsidiary, Silverstreet Developers LLP,
purchased a large volume of Ranbaxy shares just a few days before Sun
Pharma and Ranbaxy announced an all stock merger deal, which was valued
at $3.2 billion.
A group of investors, who approached the Andhra Pradesh
high court last week, alleged that Sun Pharma promoters or people
directly related to Sun Pharma, who were privy to the soon-to- be-
announced merger, were involved in the share purchase and profited from
it, violating Sebi’s insider trade rules.
“There shall be interim status quo as prayed for,” said justice P. Naveen Rao in response to the petition.
Mint has reviewed the interim order.
A spokesperson for Sun Pharma said that the company has not received any such communication.
“At Sun Pharma, we hold ourselves to the highest
standards of corporate governance and business ethics. Our code of
conduct serves as a compass that guide the actions of our employees and
directors ensuring consistent and uncompromising integrity as we build
trusted relationships around the world. The matter related to purchase
of shares of Ranbaxy Laboratories Ltd does not violate insider trading
rules,” he said in an email, adding that the company would take
appropriate action as advised by its legal counsel.
The writ petition was filed by two individual investors
Tammali Shiva Kumar and Undi Venkatasubbaraju seeking the court to
“restrain” for any scheme of amalgamation or merger during the pendency
of the petition.
The petitioner alleged “insider trading” in Ranbaxy shares before announcement of the deal on 6 April.
The petitioners requested the court to direct Sebi not to
give its in-principle approval to the merger or an arrangement or an
amalgamation of Sun Pharma and Ranbaxy. They sought court to direct Sebi
to “ investigate” insider trading in Ranbaxy shares and take
appropriate action under the law.
The petitioners also sought action against Sun Pharma and its wholly-owned arm Silverstreet Developers.
The court has issued notices to Sebi , BSE, NSE, Sun
Pharma, Ranbaxy and its owner Daichii Sankyo Co. Ltd, and Silverstreet
to respond to the petitioners’ charges.
Mumbai: Shares of Sun Pharmaceuticals Industries Ltd and Ranbaxy Laboratories Ltd
fell in early trade on BSE after Andhra Pradesh high court put the
proposed merger between the two drug makers on hold on Tuesday.
At 10.22am, shares of Sun Pharma were trading at Rs.631.95
apiece on BSE, down 1.16% from their previous close even as India’s
benchmark Sensex Index rose 0.79% to 22,643.41 points. Shares of Ranbaxy
were trading at Rs.473.4 apiece on the exchange, down 2.03%.
The Andhra Pradesh high court, acting on a writ petition
filed by a group of investors, on Tuesday asked the stock exchanges and
market regulator Securities and Exchange Board of India (Sebi) not to
approve the merger deal announced in April, untill allegations of
insider trading involving Sun Pharma’s promoters are investigated.
A Sun Pharma subsidiary, Silverstreet Developers LLP,
purchased a large volume of Ranbaxy shares just a few days before Sun
Pharma and Ranbaxy announced an all stock merger deal, which was valued
at $3.2 billion.
A group of investors, who approached the Andhra Pradesh
high court last week, alleged that Sun Pharma promoters or people
directly related to Sun Pharma, who were privy to the soon-to- be-
announced merger, were involved in the share purchase and profited from
it, violating Sebi’s insider trade rules.
“There shall be interim status quo as prayed for,” said justice P. Naveen Rao in response to the petition.
Mint has reviewed the interim order.
A spokesperson for Sun Pharma said that the company has not received any such communication.
“At Sun Pharma, we hold ourselves to the highest
standards of corporate governance and business ethics. Our code of
conduct serves as a compass that guide the actions of our employees and
directors ensuring consistent and uncompromising integrity as we build
trusted relationships around the world. The matter related to purchase
of shares of Ranbaxy Laboratories Ltd does not violate insider trading
rules,” he said in an email, adding that the company would take
appropriate action as advised by its legal counsel.
The writ petition was filed by two individual investors
Tammali Shiva Kumar and Undi Venkatasubbaraju seeking the court to
“restrain” for any scheme of amalgamation or merger during the pendency
of the petition.
The petitioner alleged “insider trading” in Ranbaxy shares before announcement of the deal on 6 April.
The petitioners requested the court to direct Sebi not to
give its in-principle approval to the merger or an arrangement or an
amalgamation of Sun Pharma and Ranbaxy. They sought court to direct Sebi
to “ investigate” insider trading in Ranbaxy shares and take
appropriate action under the law.
The petitioners also sought action against Sun Pharma and its wholly-owned arm Silverstreet Developers.
The court has issued notices to Sebi , BSE, NSE, Sun
Pharma, Ranbaxy and its owner Daichii Sankyo Co. Ltd, and Silverstreet
to respond to the petitioners’ charges.
Mumbai: Shares of Sun Pharmaceuticals Industries Ltd and Ranbaxy Laboratories Ltd
fell in early trade on BSE after Andhra Pradesh high court put the
proposed merger between the two drug makers on hold on Tuesday.
At 10.22am, shares of Sun Pharma were trading at Rs.631.95
apiece on BSE, down 1.16% from their previous close even as India’s
benchmark Sensex Index rose 0.79% to 22,643.41 points. Shares of Ranbaxy
were trading at Rs.473.4 apiece on the exchange, down 2.03%.
The Andhra Pradesh high court, acting on a writ petition
filed by a group of investors, on Tuesday asked the stock exchanges and
market regulator Securities and Exchange Board of India (Sebi) not to
approve the merger deal announced in April, untill allegations of
insider trading involving Sun Pharma’s promoters are investigated.
A Sun Pharma subsidiary, Silverstreet Developers LLP,
purchased a large volume of Ranbaxy shares just a few days before Sun
Pharma and Ranbaxy announced an all stock merger deal, which was valued
at $3.2 billion.
A group of investors, who approached the Andhra Pradesh
high court last week, alleged that Sun Pharma promoters or people
directly related to Sun Pharma, who were privy to the soon-to- be-
announced merger, were involved in the share purchase and profited from
it, violating Sebi’s insider trade rules.
“There shall be interim status quo as prayed for,” said justice P. Naveen Rao in response to the petition.
Mint has reviewed the interim order.
A spokesperson for Sun Pharma said that the company has not received any such communication.
“At Sun Pharma, we hold ourselves to the highest
standards of corporate governance and business ethics. Our code of
conduct serves as a compass that guide the actions of our employees and
directors ensuring consistent and uncompromising integrity as we build
trusted relationships around the world. The matter related to purchase
of shares of Ranbaxy Laboratories Ltd does not violate insider trading
rules,” he said in an email, adding that the company would take
appropriate action as advised by its legal counsel.
The writ petition was filed by two individual investors
Tammali Shiva Kumar and Undi Venkatasubbaraju seeking the court to
“restrain” for any scheme of amalgamation or merger during the pendency
of the petition.
The petitioner alleged “insider trading” in Ranbaxy shares before announcement of the deal on 6 April.
The petitioners requested the court to direct Sebi not to
give its in-principle approval to the merger or an arrangement or an
amalgamation of Sun Pharma and Ranbaxy. They sought court to direct Sebi
to “ investigate” insider trading in Ranbaxy shares and take
appropriate action under the law.
The petitioners also sought action against Sun Pharma and its wholly-owned arm Silverstreet Developers.
The court has issued notices to Sebi , BSE, NSE, Sun
Pharma, Ranbaxy and its owner Daichii Sankyo Co. Ltd, and Silverstreet
to respond to the petitioners’ charges.
ajay singh thakur
pgdm 2nd sem
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