Sun Pharma, Ranbaxy rally over 3% as Andhra High Court lifts status quo order on merger

NEW DELHI: Sun Pharma and Ranbaxy Laboratories Ltd rallied 3-5 per cent in intraday trade on Monday after Andhra Pradesh High Court on Saturday vacated stay orders it issued last month on the merger of two firms that would create world's fourth largest medicines producer.

The merger was considered the largest in the Indian pharma sector involving $4 billion (Rs 24,000 crore).

Disposing of the writ petition filed against the merger by certain retail investors who accused insider trading in the shares of Ranbaxy Labs days before announcement of merger, the high court directed market regulator Sebi to probe into the allegations.

According to an ET report, the high court did not specify any timeframe for Sebi to complete probe into insider trading allegations, Vivek Reddy, counsel for retail investors, said the market regulator would have to finish its job in 60-90 days going by convention.

"The decks for merger are not completely cleared now. The merger will, however, be subject to the final outcome of Sebi's probe into the alleged insider trading in shares," he told ET.