Sun Pharma shares jumps 5 pct after replacing distributor Aditya Medisales
Shares of Sun Pharmaceutical Industries Tuesday jumped up to 5 per cent after it replaced its domestic formulations distributor Aditya Medisales with an own subsidiary. The stock rose 4.95 per cent to end at Rs 418.05 on BSE. During the intra-day trade, it surged as much as 6.12 per cent to Rs 422.75. Similarly, on NSE, the scrip advanced by 4.80 per cent to close at Rs 417.40. It had hit an intra-day high of Rs 423.50. Sun Pharma also emerged as the biggest gainer in the Sensex pack.
"Sun Pharma's distribution related to India's domestic formulations business shall be transitioned from Aditya Medisales Ltd, the current distributor, to a wholly-owned subsidiary of Sun Pharma," the company said in a regulatory filing. Sun Pharma said this change will be made effective by the first quarter of 2019-20, post receipt of all requisite regulatory approvals.
The company also announced unwinding of a transaction amounting to Rs 2,238 crore with Atlas Global Trading and initiated steps to induct SRBC & Co LLP, its statutory auditors, as auditors of subsidiaries. The shares were under pressure amid reports of a whistleblower complaint against the company.
According to reports, a second whistleblower complaint was filed against the firm earlier this month. Besides, a whistleblower in November last year approached the Securities and Exchange Board of India (Sebi) with a document alleging various irregularities by the company, its promoter and others. Sun Pharma wrote to Sebi last week flagging concerns that certain entities were allegedly adopting unfair trade practices.
(With inputs from agencies.)
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