Sun Pharma promoters poorer by Rs 12,660 crore in 10 days

TIL Desk/Business/New Delhi/ The country’s leading drug maker has lost more than Rs 23,000 crore worth investor wealth in the past 10 days, with the stock plunging to a five-year-eight-month low on Wednesday, as it continued to fall in three consecutive trading sessions.The promoters, who hold a little over 54 per cent in the firm, have seen their wealth erode by Rs12,660 crore since November 26.

The company’s valuations took a severe hit since the controversy around alleged lapses in corporate governance surfaced, with a note from a foreign securities firm doing rounds on social media platforms. This was corroborated by the Securities and Exchange Board of India (Sebi) sources, claiming that the market regulator planned to reopen an insider trading case against the company and its promoters following a whistleblower complaint.

Sun Pharma’s market capitalisation stood at Rs 100,050 crore on Wednesday, with its share price closing at Rs 417 a piece – lowest since March 2013. The stock, which has been valued at a premium over its peers, ranked 26th in terms of market capitalisation among BSE stocks on Wednesday. This too was a low compared to the March 2016 figures, when it had a market cap rank of six.