Budget 2012: Sun pharma & Cadila healthcare stocks down, due to MAT in partnership firm

MUMBAI: Shares of Sun Pharma and Cadila healthcare came down sharply, as the Finance Minister increased the scope of Minimum Alternative Tax (MAT) to all units, including partnership firms.

Sun pharma and Cadila healthcare's domestic formulation business is under a partnership firm. These companies hold majority stake in their respective partnership firms, which helped them to skip the Minimum Alternative Tax, however with FM's move, now both the companies will have to pay up MAT close to 20 %.

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The shares of Sun pharma was down by 7 % closing at Rs 545, and Cadila Healthcare closed at Rs 711 down by 5 %