Andhra HC vacates status quo order on Sun Pharma-Ranbaxy merger - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking)

Andhra HC vacates status quo order on Sun Pharma-Ranbaxy merger :

"Andhra Pradesh high court vacated stay orders it issued last month on the merger of Sun Pharma-Ranbaxy. Disposing off the writ petition filed against the merger by certain retail investors who accused insider trading in the shares of days before announcement of merger, the high court directed market regulator SEBI to probe into the allegations. The vacation court judge G. Chandraiah pronounced orders vacating the status quo order the court issued last month. Though the high court did not specify any timeframe for SEBI to complete probe into insider trading allegations, its expected SEBI would finish its job in 60-90 days going by convention. With this the decks for merger are mostly complete subject to the final outcome of SEBI's probe into the alleged insider trading in shares. We recommend an accumulate on the stock."

Shares of SUN PHARMACEUTICAL INDUSTRIES LTD. was last trading in BSE at Rs.599.35 as compared to the previous close of Rs. 597.85. The total number of shares traded during the day was 173293 in over 5597 trades.

The stock hit an intraday high of Rs. 611.5 and intraday low of 595.9. The net turnover during the day was Rs. 104154236.

Source : Equity Bulls

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