Sun Pharmaceutical Industries slumped 9.59% to Rs 944 at 10:40 IST on BSE after the board of directors of Daiichi Sankyo approved a resolution on 20 April 2015, to sell entire or part of its holding of Sun Pharma shares.
Daiichi Sankyo made announcement yesterday, 20 April 2015.
Meanwhile, the BSE Sensex was down 154.63 points, or 0.55%, to 27,731.58.
Huge volumes were traded on the counter on BSE. On BSE, so far 74.54 lakh shares were traded in the counter, compared with an average volume of 2.22 lakh shares in the past one quarter.
The stock hit a high of Rs 976.15 and low of Rs 933.10 so far during the day. The stock had hit a record high of Rs 1,200.70 on 7 April 2015. The stock had hit a 52-week low of Rs 572.15 on 22 May 2014.
The stock had outperformed the market over the past one month till 20 April 2015, rising 1.66% compared with 1.33% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 20.01% as against Sensex's 3.12% decline.
The large-cap pharma company has an equity capital of Rs 240.61 crore. Face value per share is Re 1.
Daiichi Sankyo said that after the closure of merger between Daiichi Sankyo Subsidiary Ranbaxy Laboratories and Sun Pharma, Daiichi Sankyo received the shares of Sun Pharma following the completion of Sun Pharma's merger with Ranbaxy Laboratories in March 2015. From the perspective of the improvement of corporate value, Daiichi Sankyo has performed a review of the Sun Pharma shares and reached a conclusion to sell the shares entirely or partially. After the sale, Daiichi Sankyo will not be a major shareholder of Sun Pharma. However, the existing business partnership with Sun Pharma will remain unchanged.
As on 16 April 2015, Daiichi Sankyo own 21.49 crore shares in Sun Pharma. Daiichi Sankyo has planned to sell Sun Pharma shares on the Indian stock exchanges. Daiichi Sankyo will make an announcement concerning the effect of any gain or loss on the sale of Sun Pharma shares when results of operations for the fiscal year ending in March 2015 are announced.
Daiichi had acquired Ranbaxy for $4.6 billion in a cash deal in 2008. In 2014, Sun Pharma acquired Ranbaxy for $4 billion in an all-stock deal.
Sun Pharmaceutical Industries' consolidated net profit dropped 6.9% to Rs 1425.07 crore on 1.9% decline in total income to Rs 4361.85 crore in Q3 December 2014 over Q3 December 2013.
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