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Sun Pharma stocks plunge on revelation of whistleblower's complaint
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SME Times News Bureau | 19 Jan, 2019
The stock of pharmaceutical
major Sun Pharma ended up as the top loser on the BSE Sensex on Friday
following reports of a complaint by a whistleblower to the Securities
and Exchange Board of India (Sebi) against the company, raising issues
of corporate governance.
The company scrip tanked over 12 per
cent at one point to Rs 390.50 apiece, losing Rs 36.65, or 8.58 per
cent, from its previous close of Rs 427.15. The scrip was the top loser
on the Sensex also on Thursday.
After the steep fall in its share
price, Sun Pharma in a letter to Sebi said there is great asymmetry in
information circulating between analysts, investors and the media,
leading to intense speculation.
"We wish to bring to your kind
notice an alleged second whistleblower complaint filed against our
Company, which we learnt from a media report on January 15, 2019," Sun
Pharma said.
"There is a great asymmetry in the information circulating between analysts, investors
and media leading to intense speculation. The availability of
information contained in the whistleblower documents to a set of
selective investors does put other investors including retail investors
in a disadvantageous position," it said.
"We are concerned that
certain entities/individuals are adopting unfair trade practices
prejudicial to the interest of shareholders and other stakeholders.
"It
is evident from the fact that shareholders value has been drastically
eroded within a short span of time due to unsubstantiated
complaint/allegation against the company and mala fide campaign launched
by certain media houses," it added.
In its letter, Sun Pharma
asked the market regulator to thoroughly examine the issue, as well as
the role of some media houses and stakeholders in the matter.
The
whistleblower's complaint, on transactions worth over Rs 5,800 crore
between 2014-2017, alleges that Indian drugs manufacturer Aditya
Medisales Ltd had transactions with Suraksha Realty, controlled by Sun
Pharma's co-promoter, Sudhir Valia.
Commenting on the plunge in
Sun Pharma stocks, Deepak Jasani of HDFC Securities told IANS that the
complaint had raised fresh concerns over corporate governance at the
company.
"Investors were at a loss as to what the complaint is
all about or what will the impact of that on the company's operations
or its stock price. While some traders took this as a bottomfishing
opportunity, other stayed away till the dust settles," he said.
"Fundamentally
some brokerages have become bullish on the stock over the past
few days, but their calls seem to have misfired atleast temporarily."
Sebi confirmed last month that it had received a whistleblower's complaint against Sun Pharma.
According
to a media report, the latest complaint has been made by the same
whistleblower who had complained to Sebi in September 2018 of possible
insider trading during Sun Pharma's takeover of Ranbaxy which had
resulted in alleged gain of as much as Rs 8,000 crore.
The
whistleblower has alleged numerous irregularities against Sun Pharma
promoter Dilip Shanghvi, his brother-in-law Sudhir Valia and Dharmesh
Doshi, an associate of the 2001 stock market scam convict Ketan Parekh.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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