Sun Pharma jumps 5% as company clarifies on Suraksha Realty

NEW DELHI: Notching up gains for the second straight day, India’s largest drug maker Sun Pharma jumped 5 per cent in Tuesday's trade after the company clarified that it neither gave any loan nor guarantees to Suraksha Realty.

"Sun Pharma would like to dispel all falsehoods being spread about its financial dealings. The company states unequivocally that it does not have any financial transactions with Suraksha Realty," the company told BSE.

The stock closed 4.95 per cent higher at Rs 418.05 on BSE. The company has approached market regulator Sebi to investigate the alleged second whistleblower complaint that spooked the market.


Financial advocacy website and magazine Moneylife had offered institutional investors access to the second whistleblower letter, prompting Sun's complaint to Sebi. Sun complained that such access creates a "great asymmetry in the information circulating among analysts, investors and media, leading to intense speculation".

Meanwhile, the company said it will make its unit the new distributor for its domestic formulations business, discontinuing super stockist arrangement with Aditya Medisales.

"Sun Pharma’s distribution related to India Domestic Formulations Business shall be transitioned from Aditya Medisales, the current distributor, to a wholly-owned subsidiary of Sun Pharma. This change will be made effective by Q1 FY20, post receipt of all requisite regulatory approvals," the company said in a BSE filing.