Shares of India’s largest drugmaker fell as much as 13.2 percent.
Mumbai: Sun Pharmaceutical Industries Ltd. plunged to its lowest point in almost six years after a media report that mentioned a new whistle-blower complaint sent to India’s market regulator, alleging corporate governance lapses.
Shares of the nation’s largest drugmaker fell as much as 13.2 percent and were trading 10.5 percent lower at 381.95 rupees a share — the lowest level since February 2013 — at 10:55 a.m in Mumbai. It was also the worst performer on S&P BSE Sensex this year, data compiled by Bloomberg show.
A 172-page complaint sent to the Securities and Exchange Board of India alleges a company that acts as Sun Pharma’s distributor in India, and has been declared as a related party, did 58 billion rupees worth of transactions with a realty firm controlled by one of Sun Pharma’s directors, according to a Jan. 16 report from website Moneylife.in.
Gaurav Chugh, a spokesman for Sun Pharma, decline to comment when reached by phone. SEBI spokesman N. Hariharan didn’t respond to calls and text messages by Bloomberg seeking comment.
A November report by the Press Trust of India said India’s stock market regulator is likely to reopen an insider trading case against Sun Pharma to probe alleged lapses by some of its promoters and other entities in raising funds oversees. – Bloomberg